Rss Feed Tweeter button Facebook button
Home > Personal Finance > How To Define Wealth

How To Define Wealth

What is wealth? It can be many things including non-financial stuff, such as having your health, your family and living in a safe place. From this point of view, many Americans and people around the world can consider themselves wealthy. Since this is a financial site, I will talk mainly about ‘financial’ wealth.

Here’s how I define wealth.

Wealth is the ownership of a valuable asset that can in the future (or already does) product income.

Why does this matter? Understanding what wealth is and using it to your advantage can help you to improve your quality of life. Here’s how:

  1. Increase your standard of living. Owning assets that produce income can add to, or replace income you earn at your job.
  2. Enhance your income security. If you can earn additional income consistently, it can help tide you over with your bills if job loss occurs.
  3. Enhance job flexibility. By not depending on your job for all of your income, you can consider other employment options which may fit your lifestyle better: take a lower paying but more fulfilling job, taking time off, becoming a consultant, going part time instead of full time.
  4. Help you to afford to fund your goals, such as retirement, college costs, or big purchases such as a home.

One of the goals of this site is to demonstrate that owning wealth is not just for people with a lot of money. Anyone can own assets no matter what you earn or what your job is. On this site, I will be talking mainly about general personal finance topics, with a primary focus on wealth building.

Categories: Personal Finance Tags:
  1. No comments yet.