WHAT IS WEALTH?

Although normally a reliable and valuable resource, Investopedia is a little bland when it comes to defining wealth.

These takeaways touch on a few important elements, namely: 1) Wealth is a relative measure, and 2) A high income alone does not make one wealthy. The rest of these observations are useful but mostly lacking.

All through the ages, philosophers have discussed wealth and attempted to unpacking its wide and complex definition. This does little to help the curious, aspirational individual. Determining who is wealthy and establishing a clear definition of wealth is a first step in developing a “wealthy” life.

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Who is Wealthy?

Utilizing income or net worth as markers of wealth will lead to simple conclusions. Wealth cannot be measured without context. Although comparison or “keeping up with the Jones” can be an unhealthy habit, when determining wealth it is necessary.

The wealthiest man in Springfield, MO is exceptionally well off but does not compare to the wealthiest person in New York, NY or San Francisco, CA or Austin, TX. The opposite is also true. Across the world, countless millions of people are jealous of those below the poverty line across the United States. It does not make sense. It is not fair. Nevertheless, it is true.

A monetary determination of wealth can lead to difficult conclusions and questions. Although there is a value-based explanation for wealth, there is much more in the equation. There are certain moral, ethical, and societal expectations around the accumulation and consolidation of wealth.

Fortunately, a better definition of wealth expands well beyond simple dollars and cents.

Define Wealth

Wealth is personal, and no two definitions will be the same. Few people will limit the definition of wealth to solely money.

How someone defines wealth will be a mirror of values. It becomes a lens to understand what truly matters.

Some will highly value autonomy and personal freedom. Others will point to friends and family as what makes life worthwhile. When thinking about wealth, a number of other key elements likely come to mind: hobbies, possessions, health/wellness, or even love.Those few individuals who mention income or net worth will quickly develop a deeper definition, concluding that the term wealth expands beyond material resources.

An annual re-watch of the film classic It’s A Wonderful Life is a Christmas tradition for many. The entire movie is about the struggle to attain wealth and advance professionally while inspecting one’s impact on others.

Although dated at points, the vast majority of the movie stands the test of time and many of its principles serve as needed reminders. In the movie’s final scene, the main character, George Bailey (played by Jimmy Stewart), reads an inscription, “No man is a failure who has friends.”

And a few moments later, as everyone gathers to save George, his family, and his business a toast is raised, “To George Bailey, the richest man in town!”

This scene encapsulates a better definition of wealth, noting the importance of friends, family, and contribution to the community. In many cases, seeking and determining wealth’s true meaning will lead to a deep conversation about life’s meaning and purpose.

The Purpose of Wealth

Once again, there is no singular purpose of wealth. It expands beyond any individual culture or religion.

Purpose is difficult to determine, even outside the context of material wealth and resources. Many will point to the Golden Rule, “Do to others as you would have them do to you.” This is a good start.

When an individual has accumulated enough wealth to provide for the rest of their life, and even the lives of their children and grandchildren, the pursuit of money is likely no longer a motivating factor. Do Jeff Bezos, Elon Musk, or Warren Buffett wake up each morning and ask, “How can I make more money today?”

Perhaps. An initial thought is more likely to be, “How can I do something meaningful today?” Perhaps this is why Bezos made a short journey to space, Musk desires to provide WiFi to remote locations, or Buffett proactively discusses his philanthropic intentions.

Most traditions tie good fortune to duty. If one is fortunate enough to accumulate great wealth, it should be used for the ultimate benefit of society and others. This does not mean that one cannot enjoy the pleasures of wealth. When the accumulation of wealth exceeds one’s own needs, it should be spread purposefully.

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Wealth and family are at the core of the most complicated set of life’s questions. Everyone should carefully consider wealth’s impact in their own life and the lives of others. The wealthiest people are often the ones most interested in the well-being of others.

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What is your definition of wealth? What does a wealthy life look like to you? Drop me a line and reply with your thoughts.