Signs You’re Wealthier Than You Think
Signs You’re Wealthier Than You Think
Cameron Huddleston Last updated: Oct. 4, 2021
When most think of wealth, they think about money," said Tom Corley, author of "Rich Habits" and "Change Your Habits, Change Your Life." "The thinking goes, the more money you have, the wealthier you are. But wealth is about much more than money." You might want to become the next Warren Buffett, but there's a good chance you already have more wealth than you realize.
See how and some of the steps you can take to start building more wealth today.
Sign 1: Your Wealth Isn’t Defined by an Arbitrary Number
One of the main reasons many people don't realize how wealthy they are is because they compare themselves to others, said Michael Kay, author of "The Feel Rich Project" and president of Financial Life Focus. It's easy to assume someone is rich if you see him living in a big house, driving a nice car or belonging to a country club. But looks can be deceiving.
"You can't know what someone's true wealth is unless you're looking at their net worth statement," he said. For example, you might assume that, compared with an attorney and doctor, a mechanic isn't as well off, Kay said. But the mechanic might be the wealthiest because he's careful with his money and isn't trying to impress anyone with status symbols.
"At the end of the day, wealth is self-defined," he said. For example, if you say to yourself that you won't consider yourself wealthy until you have $5 million, ask why you've chosen that number.
Analysis
Instead of selecting an arbitrary measure of wealth, define what is important to you. Then, you can determine how much income and savings you need to have what you value. You might find that you're already on track to achieving what's important -- whether it's being able to retire at a certain age, work fewer hours, change jobs or take annual vacations.
"Wealth is all about finding what it truly is for you," Kay said. "Most people figure out it isn't about things."
Sign 2: You’re Not Weighed Down by Debt
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