Defining whether or not someone is rich is a hard task. Not even financial experts can quantify someone’s wealth. Apparently, some Americans have assets worth million dollars but they still feel they are not rich. Listening to a vast majority of the Americans, $2.3 million in personal net worth is the average in identifying a person’s wealth. Nonetheless, from financial planners, there is still no certainty of whether or not this defines richness.
While wealth can be relative, there are many other intangible factors, which could define it. This includes peace of mind. Do you know you could have all the houses, vehicles, land and educated children but your mind is racing in thought? To many people being happy is considerably more wealth than what they have in their bank accounts. Income and assets will not make them feel rich if at all they do not have the mental, physical and emotional alignment.
It is surprising how in some scenarios someone will just laugh and say they are getting by despite having $3 million. It is a clear indication that to them, $3 million is not an amount for the rich. Such are high earners but they also spend large. Do not be shocked that they are servicing substantial amounts of loans and mortgages despite the fact that they are living in high-class neighborhoods.
Financial experts will tell you that the lifestyle you desire describes how rich you are. Someone working one day in a week, while traveling the world is equally rich. Why because they already accumulated bank balances they need to make them feel rich.
Another person is living paycheck to paycheck but they feel rich because they can meet the basic obligations. However, this is a risk because they do not have a fall back in the event the source of income dried up.
In a nutshell, do not be deceived to believe that the more dollars you have the rich you are. You have the dollars yes, but are you content with the day-to-day? Are you struggling to sustain your lifestyle? Punch in your numbers and benchmark. You will be surprised that you still have a long way to go.
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