Are you truly wealthy or poor in reality?

After reading a post on the definition of wealth over at Productivity501, it sets me thinking on my own definition of wealth. What does true wealth really mean to me? What does it mean to you?

A textbook meaning would define wealth simply as a measure of personal net worth ie. your total assets minus your total liabilities. If your assets are worth more than liabilities, you have positive wealth, if not, you would have got to work harder to either increase your assets or decrease your liabilities.

According to the meaning of wealth in the Rich Dad series of books, a much better definition states that wealth is a measure of how long you can survive at your current standard of living if you quit your job today. The longer you can survive, the wealthier you are.

By the second definition, I am wealthy as I can by all means quit my job now and still get by a few months without much worries(which I am contemplating to do now). But through my own definition, I am not at all wealthy. After my cache of money dries up, I'll still have to look for a new job or source of income.

My definition of true wealth means having enough money to afford what I want, whenever I want it, worry free. Let me elaborate further. For example, I would be wealthy if I could go for dinner at a fancy restaurant every night if I want to, or simply take off for a holiday to the Maldives for weeks at a time, or buy a new tech gadget such as an Macbook Air at the spur of the moment. If I could do all of these with no worries of overspending or having my income stream dry up, then by my definition, I am truly wealthy. These examples however, does not necessary mean that I am a spendthrift or overindulgent, but just analogies to show what I mean by doing what I want, when I want it!

Of course, wealth can be created by lowering your costs or standards as well. For example, shopping at discount stores, buying house brand provisions at supermarkets, forgoing the comfort of your own vehicle for public transport etc. But to me, that would simply be lowering your standards and quality of life. Frugality is a virtue, but we should never be shortchanging ourselves by ever settling for less.

True wealth is created by expanding by living our life to the fullest by constantly expanding our means, setting ever higher standards, and never by compromised by living below our means, or setting lower standards. Are you building your success by creating true wealth today? Feel free to share your thoughts!

Do subscribe to Prospecting LIFE if you like my post.
Visit Prospecting LIFE Bookstore for recommended readings to bring success into your life!