What does "Wealth" Mean to You?Submitted by LHD Retirement on January 18th, 2023
In our client meetings, the term “wealth” is often tossed around somewhat loosely. We talk about building wealth, managing wealth, enhancing wealth, and preserving wealth as if the concepts are universally understood. But what exactly is wealth? It’s such a vague term that every person has a slightly different meaning. That’s why we need to start with some deep introspection about what having wealth really means.
The Risk of More
When the idea of wealth turns into the pursuit of “more”, there usually isn’t a destination. Happiness is often only fleeting because any sense of satisfaction is only temporary and often replaced by a desire for the next thing. Failure to appreciate what we have may only increase the “risk of more,” with possibly no guarantee of increased happiness.
Some people that consider themselves wealthy see money as a tool to help them pursue what matters to them. Their life narrative isn’t about having more money, but about having enough to live the way they want. There’s even evidence to suggest that people are happier when they purchase experiences instead of things, as shown in one study by The University of Texas at Austin.
Wealth as a Destination
Many people, even ambitious ones, struggle to clearly define their vision of a good life. In some cases, this leads them to follow any path, often chosen impulsively based on current needs and the actions of others around them. Imagine what could happen if someone suddenly received a large windfall, but had no ambitions or purpose. Do you think they would use it toward something they cherish, or spend it carelessly?
Taking some time to create clarity around your vision of the future may help you define your purpose. Try to spend a few moments thinking about how you view wealth, and how that belief impacts your approach to your goals. When you have clarity around your purpose, you may have an easier time developing a financial strategy that could help you grow and preserve your wealth so you can lead a good life.
And if you need help defining wealth and creating an actionable plan to help you pursue your goals, consider talking to a financial professional. They can help you turn your definition of wealth into a strategy that aims to bring you closer to your ideal lifestyle. Give us a call or send us a message and let’s discover what wealth means to you.
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