Are you rich? Are you wealthy? The answers to these questions are very subjective. They vary depending on your situation and how you measure wealth. You might consider yourself wealthy based on the amount of money you have in your bank account. Or you might say you are rich because you don’t live life worrying about debt. Maybe money has nothing to do with being rich. Being wealthy and rich can be defined in multiple ways. Here are just a few.
Living financially free
Wealth may be defined as living with complete financial freedom and maintaining good financial health. Financial freedom means having enough money to live comfortably and happily. In other words, you are able to meet all of your needs and wants without the fear of a lack of finances. Additionally, you understand the value of the dollar and like to donate and share the value of money with others.
Planning for the future
You consider yourself rich when you have accumulated enough wealth to plan for your future and succession. When you are in a position to organize an estate plan, for example, you may say you are wealthy. Similarly, you define wealth by the ability to securely distribute enough finances to all of your next of kin.
Making decisions without financial considerations
Perhaps being rich comes from the fact that finances no longer play a role in daily decisions. If you can walk away from a job because you don’t have to think about whether you have enough money for basic necessities, then you are rich. Wealth allows you to work toward your passions rather than the need to survive on a day-to-day basis, which results in self-worth and happiness.
Being rich also means securing enough finances to live life according to your goals; for example, you have enough money to achieve your hopes and dreams by living in a way that feels fulfilling. In particular, if you quit your job, you would have the financial resources to maintain the same lifestyle for the rest of your life. When you have the opportunity to enjoy and obtain your material desires, you can be considered wealthy.
Having time and more leisurely freedom
Wealth also equates to having more time and leisure freedom or utilizing finances to complete activities that you don’t value or enjoy. Paying for a weekly house cleaner, for instance, contributes to having more time with family or pursuing other passions. Maybe you are rich when you have more time to travel whenever you desire in order to dedicate more time to other aspects of your life.
The definition of both rich and wealthy is different for everyone. What’s your definition?