Everyone has a different opinion about what “wealth” means to them. For some, it’s just getting to a positive net worth (I’m not there yet!) For others, it’s being able to comfortably afford your home and life’s little extras. Maybe some people feel wealthy simply because they are able to put food on the table at night.
I’m sure there are more exact definitions, and the experts can probably tell us when someone has become “wealthy,” but I have to say, I feel wealthy already. Here’s why:
1. I Can Pay My Rent
Although I’ve made some poor money choices in my life, I’ve never skipped on rent. Even when I made a mistake and had to pay three rents at once, I did so without fail. Today, I love budgeting and figuring out how I can pay two months of rent at once so that I have a “free” month the next month. Essentially, just being able to put a roof over our heads at a price we can comfortably afford makes me wealthier than most of the world.
2. I Invest In My Future
Although it’s common to read about a personal finance blogger who saves for retirement, I don’t come across it often in my day to day life. So many people my age in their mid-20’s have not started saving for their retirement or do not contribute enough at their work to get the full match. I feel lucky that I stumbled across the personal finance world early and was inspired by so many people to save early. While I wish I could save more and there are challenges to our situation with one of us in school full time, we do feel like every little bit helps.
3. I Have My Health
To me, being wealthy is so much more than the dollar amount that I have in the bank. I feel like my life is enriched simply because I am healthy and my family is healthy. We’re in a good place where we’re pursuing our dreams, living in an interesting place, and are healthier (and thinner) than we have been in a long time.
4. I Can Buy Some Extras
Whether it’s a pack of gum at the store or a quick weekend getaway, I feel wealthy because I can incorporate a few extras into my monthly budget. I’m no longer living paycheck to paycheck (something I’m grateful for every day) so I definitely know how blessed I am to have the job that I do, the work ethic to make extra money on the side, and ability to enjoy my hard work guilt free from time to time.
Like I said, the above are just components of my own definition of wealth. I realize there are many different ways to approach wealth in general and many different opinions on the subject.
So, I want to hear from you. Do you think you are wealthy? What’s your definition of living a wealthy life?
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Great list, and mine would be very similar – but I don’t know if I would call it feeling wealthy – it definitely makes life comfortable though! I think where people will differ is what those little “extras” are. I don’t really want for much….but I really enjoy being able to throw a great cut of meat on the smoker every now and then. :)
DebtChronicles Haha you and I would get along. I’m a girl who will never turn down a good steak! ;)
I know that I am wealthy not in the money sense but from the value of life and the love I get from my family. For me its about knowing that I have people that love, care, believe and support me. Knowledge to me is also a key for my wealth. I also feel that some money helps a lot along the way but I don’t use it as the only factor in evaluating my wealth.
YourDailyFin Knowledge is also a good one to factor in!
I am wealthy because I don’t need to go to the office anymore, and I can do pretty much what I please. Wealth to me is freedom and time to do what you want.
RFIndependence That’s the perfect definition in my opinion!
From a global perspective, most people in the U.S. are wealthy!
I personally feel wealthy when I’m able to properly take care of my children and provide them with opportunities.
Holly at ClubThrifty Yes I was thinking about that for sure when writing this!! And yes, being able to take great care of your kids is definitely a fantastic way to live.
Wealth is all relative. Compared to most people around the world I am wealthy. I’ve got my health, a supportive family, a good education, a stable country to live in, enough income to pay the bills and the opportunity to build a business. That’s more than billions of people around the world.
Stuart @ DailyMoneyBucket I completely agree. We are all so lucky!
My definitely is pretty much the same. Wealth to me is not having to worry every single day about whether or not I can have shelter and food. It means being able to do what I want.
SenseofCents I definitely agree with that one!
I am wealthy for having a healthy life and loving family. However I am not wealthy financially/property wise yet in my opinion but I am headed there.
BorrowedCents Even just the opportunity to get there makes us wealthy I think!
I believe that I am wealthy in one sense right now in my life as I have healthy relationships and I do not want for anything.
The second way I look at being wealthy is having choices, particularly as it relates to retirement. I see wealthy as being able to do without earned income (I would have the choice to work or not work) and yet, be able to live the life I want and live comfortably on passive and portfolio income.
SavvyJames That is definitely the dream!
Like Holly said, from a global mindset we’re very wealthy here in the States. That said, I think it’s somewhat relative, but would include many of the things you have listed. For us, I think it means having the freedom to do what we want and be comfortable. Good post Cat!
FrugalRules Thanks! :) I think freedom is a big factor for many people who are commenting here! Can’t put a price on that!
Love this way of thinking about it. I would say that wealth is the ability to live your life the way you want, whatever that means to you. I think that incorporates much of the specific things you’ve mentioned here. By that standard I’m pretty wealthy, though I would say I’m still looking for a little more professional fulfillment. But in general my life is pretty much what I would like it to be.
Matt @ Mom and Dad Money I love that so many of you are happy and feeling grateful today! :) I am too!
I think wealth is definitely a personal definition. I feel wealthy because I can afford my house, live comfortably, have a positive net worth, and can afford to play golf, and work on my project Jeep. That works for me.
DebtRoundUp Yeah it’s definitely the little things!
I feel wealthy because I have money left over at the end of the month and enough money saved to make me feel safe. There were many years when we made over 6 figures but had less than $1000 in savings, not counting retirement (so glad it never came to having to use that!). I certainly did not feel wealthy, although others looking in might have thought so by the thing we had and did. It’s so funny how the appearance of wealth and actual wealth usually do not go together at all.
Eyesonthedollar I think you are so right, and you’re actually a great inspiration to me to not get caught up in the dr lifestyle once hubs is finished with this crazy journey!
Being able to pay my bills without issue is definitely a sign of wealth–I agree with you completely on that. And then being able to contribute to savings goals and retirement on top of that is icing on the cake. I was able to buy a new bed recently and the fact that I was able to is a sign that I am doing fine. Sometimes we need to sit back and look at our situation like you have done to show that we are doing fine. It’s so easy to get caught up in what we don’t have, when we need to remember and be grateful for what we do have.
Tara Zee Totally! This is turning into a grateful day! I’m loving it!
I agree 100% on your definition of wealth. I would just add that I have great friends and family and that makes me wealthy as well. We don’t have to relate wealth 100% with money. As you said with health, wealth can take on various forms.
It definitely can! :)
I mention in my post today how to me financial independence and wealth are tied together. I would say I’m living comfortably because I’m debt free and can do all the things you mention in your post, but I’m far from wealthy. For me, wealth is when I can live off the interest on my capital. Incredibly lofty goal, but there it is.
Recently, a friend casually mentioned how she thought her roommate was rich because she had XX amount of money in her bank account. I chuckled to myself because I have more than that, but hardly would consider myself rich. I don’t have a debt, a mortgage, a car or kids. Once I have those drains on my bank account all that money would probably disappear.
BrokeMillennial It’s a lofty goal but totally reasonable considering how young you are. :D Also, it’s funny how people consider wealthy to be different things!
Great post! I agree with this list. I think most people out there define being wealthy as having flashy cars, expensive tech gadgets, a huge McMansion home, and other luxuries. But I think that their idea of wealth is influenced too much by the media.
Andrew LivingRichCheaply I think it’s kind of nice how no one on this post thinks wealth = possessions. We’re such a cool bunch. ;)
Wealth means never having to work again.
It means so much free time that I get bored on a regular basis.
Jeez I miss being bored sometimes.
No Accouting For Waste Haha yeah I don’t have the problem of boredom either!!
What a cool question! I personally try to think of wealth as separate from the things my work income can achieve: so I think of being wealthy when my assets produce significant income. This might be income producing real estate, equities that produce income that is meaningful to my everyday expenses (say, annual growth in the thousands rather than hundreds). Essentially, I think the degree to which I am wealthy is in a direct relation to how many assets I have.
DonebyForty A wise answer!!
I love your definition of wealth Cat! I think wealth can be defined as being content with what you have, which it sounds like you are. That being said, I will consider myself wealthy when I can spend more time with my family each day than at work.
ayoungpro I like that goal — I am definitely content with what I have, but like you, I crave a little bit more balance!
My mom would always say to me “Health is wealth!” and I’ve grown to agree with this. I can hustle all I want and get all the money I can, but if I’m not healthy to enjoy any cent of it, then my money wealth is useless.
LisaVsTheLoans I love that quote!!!
As you have awesomely pointed out, wealth can mean many different things to people. Speaking from a strictly monetary perspective, I would say someone has become “wealthy” (rich) when the money they have invested makes more for them in a year than they make for themselves in a year at their full time job. That’s my attempt at being an expert. :)
Brian @ Luke1428 I like that expert opinion. That would definitely be an amazing scenario!
I understand how you feel. I know I have student loan debt and my retirement account isn’t where I want it to be. However, I can pay bills when they come up and enjoy the occasional night out with my girlfriend. Not really much more I could ask for.
MicrosMissions I’m totally in the same boat!
I think you pretty much nailed it. Last year when I felt like I was living paycheck to paycheck all I felt all the time was stress. Not that I’m in this awesome money making space yet, but I’m so much less worried than I used to be…more in control. It just feels good.
Beachbudget I couldn’t agree more! Cheers to us!
I think keeping it simple is probably the best way. Objectively, we make a very comfortable wage between the two of us but we also have too much money going out in monthly payments to this or that debt. I don’t know that I feel “rich” but I’m much more comfortable with the direction we’re heading financially.
Lindsey at Sense I think you are doing a fabulous job. I love reading about your journey!
I think that being wealthy means being able to cover your desired living expenses, whilst having money contributing to your future (for example, in retirement).
I don’t think its about a single net wealth figure as being “wealthy” in London & New York has a very different absolute net wealth figure than being wealthy in Sierra Leone.
The “extras” are definitely my main source of “feeling wealthy.” Weekend getaways – even if it’s with or visiting family, makes me feel like a million bucks.
I’m still trying to figure out what exactly wealth means to me. I suppose I will feel wealthy once I am out of debt, have monthly expenses less than 50% of our household income, and could stop working full-time if I so choose (to stay at home with kids or start a business or BOTH!). I guess we shall see…
For me being wealthy is not having to worry where you’ll get the money to pay for bills and what-nots. It’s being able to breathe calmly knowing that you already got it covered. I’m still working on getting there.