Defining wealth

Discussion in 'Investor Psychology' started by Xenia IM, 19th May, 2015.

  1. Xenia IM

    Xenia IM Property Manager

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    How would you define real wealth?
    Is a person with lots of money wealthy?
    Is someone with lots of knowledge wealthy?

    Is it someone with a wealth mindset?

    as people expand their mindset their wealth grows as a result, they learn to negotiate better, handle life situations better, get better at business and investing deals and know where to find them. So wealth can be a result of mindset and knowledge.

    I've experimented with different definitions over the years but don't think I have quite nailed it yet! Help appreciated. :D
     
  2. datto

    datto Member

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    Wealth equal assets minus liabilities. It has to be tangible. Anything else eg knoledge is airy fairy, comic book stuff.
     
  3. hobo-jo

    hobo-jo Not a bear just a realist

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  4. cimbom

    cimbom Member

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    Having a wealth of options :)
     
  5. BayView

    BayView Member

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    If we are talking about only a financial context, and not fluffing on about family and health and job satisfaction and so on and so forth...

    Many people equate a big house, and a flash car, and a nice boat and 3 O/S holidays per year, and a holiday house, etc... as wealth.

    These are the symbols of monetary wealth.

    You cannot do any of this without cashflow to buy them.

    Cashflow is the wealth.

    They say money can't buy happiness, but have you ever seen anyone unhappy driving a Ferrari? :D
     
  6. dajackal

    dajackal Member

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    Taken me a while to form this opinion but wealth = cashflow. Cashflow provides options.

    As such, I'm starting to redirect my assets towards fully franked shares so that it can start to replace my salary.
     
  7. skater

    skater Capitalist

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    Wealth is intangible. It means different things to different people.

    To someone living in squalor in a third world country, a junkie on the dole is wealthy.

    To the average Aussie, someone living in a lavish home with all the trimmings is wealthy.

    My view of wealth is someone who has the income and the freedom to do what they want, when they want to do it. That may be modest by 'super rich' standards, as not everybody wants to drive a Ferrari or live in a mansion.
     
  8. VYBerlinaV8

    VYBerlinaV8 Member

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    For me, wealth is having sufficient assets to give rise to enough cashflow that I can live the lifestyle of a well paid professional without having to work.

    When I can achieve that, I'll consider my wealthy.
     
  9. Jins13

    Jins13 Member

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    Well for me personally I think wealth= knowledge as well as the usual assets and properties. The reason I say this, is due to having friends who may have massive funds to play with (parent's money) but have no idea on what to do with it. I feel that the people who had had 0 today, would know how to grow that simply because they have the knowledge to do so.
     
  10. moyjos

    moyjos Member

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    My definition of wealth is to have enough income to lead the life I wish to at the time I wish to.

    This definition is different for everyone. My parents and inlaws can do whatever they want whenever they want on a pension. They are simple people who don't aspire to luxury cars and overseas travel. My parents have a small annuity on top of the pension that funds their "grey nomad" travels.

    To be honest, our lifestyle is pretty close to where I want it. The income is adequate, I just need to kill off some bad debt. Business is good, I know I can walk away for an extended holiday and it keeps functioning without me. Hubby does not have the travel bug or luxury car aspiration either... Lucky for me :). He is happy with the ute while I get the BMW and the OS holidays :).

    All in all I class myself as pretty damn wealthy, and give thanks everyday.
     
  11. Angel

    Angel Member

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    I am totally wealthy compared to where I was as a young adult in the 1980s and compared to about 80% of the world's population.

    I have always maintained that anyone, even on welfare, in Australia is wealthier than about 80% of the population. We have clean air to breathe, clean water to drink, abundant resources to access affordable food and clothing, and free public schools and hospitals. We do not live in a war zone and last time I checked, if one isn't earning an income from employment, there is a fantastic welfare and health care system in place.

    Let's face it, have you ever heard of any Australians freezing to death in the snow? Maybe homeless people down south, I really don't know, but I have never heard of anyone dying of the cold in Qld.
     
  12. Younginvester

    Younginvester Member

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    "If you stopped working, how long could you survive" - Rich Dad

    depends how much your expenses and lifestyle costs i guess...

    But in short, I beleive it is the cashflow generated by your owned assets and therefore generally measured and reported for big players as net worth (assets minus liabilities).
     
  13. trey

    trey Member

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    Wealthy to me is when you can wake up everyday and do whatever you want, when you go to work because you want to not because you have to. If you dont like your job quit if you want to go on a holiday tommorow go. If your stuck in a job because you have to service your IP houses your not wealthy. Maybe in the future but not know.
     
  14. Player

    Player Live Every Day

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    Wealth is what you're left with after you've lost all your money.
     
  15. rchad

    rchad Renee

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    Wealth - it is such a broad construct that can encompass:

    Financial - living off your assets/passive income flows
    Relationships/Networks - healthy positive relationships with others
    Health - to enjoy a good health status
    Spirituality - to have a strong sense of purpose/belief in what is important to you
     
  16. travelbug

    travelbug Member

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    A wealthy person is one who is happy with what they have and with what they do in their day to day life.


    Isn't that what we all want?
     
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  17. Vixs

    Vixs Member

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    My old man told me that to him, he would consider himself wealthy when he had enough money and was in the position to jump on a plane to go wherever he wanted to go, for as long as he wanted to go there, whenever he wanted to do it.

    He also said it's different for everyone.

    For me, wealth would be when my wife and I can live our current standard of living off my income alone, from me working for myself in a field I enjoy and having a 3 day weekend every weekend, with an annual holiday to the snow. Surely that's not too much to ask? :p
     
  18. BayView

    BayView Member

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    Yep; the entire season...at the apartment you own, right on Burke st, with the heated car park, season lift passes for the entire family. ;)

    And; a 50ft cabin cruiser permanently birthed at Martha Cove marina.
     
  19. Sean M

    Sean M Member

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    I define wealth as having something that is of value to you.

    Some people feel wealthy with their family, my clients feel wealth when they have enough money in retirement and others when they own lots of property/ business.
     
  20. Morgs

    Morgs Member

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    More than once.... for different reasons... could easily rationalize one reason as because the 488 is coming out now and that is enough to upset a 458 driver!!

    I used to be all about the numbers but for me wealth is now much more simple having been on the rollercoaster.... for me it is all about what you value & keeping that in check - a happy, healthy family. Nothing else actually matters.