Define What Wealth Means To You To Follow A Better Financial Plan

Money and wealth aren't the same thing. Sure, most people's definition of wealth includes earning money, but how much? And is time part of the equation? If you want wealth, it helps to first figure out what it means to you.

Money image via Shutterstock

Many of us, including myself, have pretty vague ideas of what wealth is. From a young age, I always knew I wanted to grow up and be rich, but that gave me pretty aimless direction. To combat this, here's what CFP Jeff Rose suggests, via Business Insider:

Before you chase wealth, define what wealthy means to you. Being wealthy does not have to revolve around money. You can have wealthy relationships with family and friends, or a wealthy experience in travel and adventures. Having wealth can also be defined as having a lifestyle business that replaces the traditional 9-5 job.

To me, wealth is about being able to do what I enjoy for a living and without worrying about having enough money. To others, it might mean owning property or amassing a million dollars. And to others still, it might mean not having to work at all. Your savings goals and financial decisions may vary, depending on your definition of wealth. For example, someone whose idea of wealth is not working might focus more on passive income. Basically, defining wealth adds a little direction to your goals, so you know exactly what you're working toward.

For more detail, check out Business Insider's post.

A financial planner says there's something everyone should do before trying to get rich [Business Insider]


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