How many people do you know who consider themselves truly wealthy? Honestly, I’m not sure I know anyone who would describe themselves that way comfortably. Don’t get me wrong. Living in the San Francisco Bay Area, I know people who make a heck of a lot of money. But they don’t feel wealthy. Because wealth isn’t really a number. It’s a mindset. So it always feels like you need just a little bit more. However, it might behoove you to check out the signs you are truly wealthy. If these things apply to you, then maybe you can stop worrying about your money for just a little bit. The less you focus on your wealth, the more you can enjoy it. Plus, you can enjoy the other beauties of life as well.
Wealth is a Mindset
Wealth isn’t a number. Of course, we do have to talk about numbers when we talk about money. If you can’t afford your rent, then you aren’t wealthy because money is stressing you out about the very basics of life. But we also can’t discount the mindset of wealth. Because if you make one billion dollars per year but never feel like you have enough then you aren’t really wealthy.
One way that we can get clearer about our wealth is to explore the signs you are truly wealthy. These signs indicate that you have enough of what you need and at least a little bit more. When you are able to notice that you embody these signs in your life, it helps with your wealth mindset. Because, yes, you might want to go on the $50000 weekend vacation but when you review that you’re hitting your own personal wealth goals despite not being able to afford that, then you remember to feel your own wealth.
5 Signs You Are Truly Wealthy
So, that’s why we’re looking at these five signs you are truly wealthy. See how many apply to you. Allow that to change your mindset from scarcity to abundance. And if you aren’t hitting these marks, set some goals to help you get there. Celebrate the small wins.
1. You Have a Clear Definition of Wealth
Don’t let other people define what wealth is for you. Moreover, don’t let wealth continue to be some vague idea that you know you’re striving for but haven’t defined. You need to dig deep and come up with a clear definition of what it truly means to you to be wealthy. Then you need to break that down into measurable goals. Truly wealthy people might be striving for “more” but they’re clear on what “more” means.
So, start here. Define the exact things that you believe define wealth. Make a list. Do an audit to figure out where you land with each part of the list. Are there any signs you are truly wealthy in some of these areas already? Where can you make changes. Simply knowing what you want and making a plan to get it is the most important of all signs you are truly wealthy.
2. You Can Live Comfortably Below Your Means
Business Insider says that the first two signs you are truly wealthy are:
- You can save money.
- You can live comfortably below your means.
In other words, you make enough money to pay all of your bills. Moreover, you make enough to do the things in life that allow you to feel like you’re living comfortably. Finally, you have at least a little bit left over each month to put into savings. These aren’t unreasonable goals. And yet, they are true signs of wealth.
3. It’s Clear That You Can Pay For Your Future
We can’t predict the future. Who knows what will happen. However, one of the signs that you’re truly wealthy is that you generally feel like you are able to pay for both what you want and need in your future. This means that if you want to pay off your house, you’re on track to do so. Or if you know that you want to retire at a certain age, with a certain amount in the bank, then you’re on track to do that. Set your future goals. Look realistically at where you’re at with your money. If you’re well on your way to providing for your future self, then you’re wealthier than you might think.
4. Your Net Worth Is Increasing
Go Banking Rates emphasizes that one of the key signs that you’re truly wealthy is that your net worth steadily increases over time. This relates to some degree to being able to pay for your future. But more than that it’s an indication that you’re growing wealth over time. So, in point two we talked about being able to put away money as a sign of wealth. Here we’re elaborating that being able to put away more money each year upon year is an even better sign of true wealth.
5. You Have The Freedom to Choose Your Commitments
The Entrepreneur’s Handbook has a different, and very interesting, approach to what defines wealth. Essentially, it’s a matter of being able to do the work (and play) that you want to do with the people you want to do it with at the time that you want to do it. It’s about the freedom to say “yes” to financial opportunities that excite you. In contrast, you can say “no” to people you don’t want to work with. If you’re living a FIRE lifestyle or working as an entrepreneur, this guide can really help you define what types of boundaries and abilities would allow you to feel truly wealthy.
When it comes to having time or money, most of us want time. Of course, we want to have enough money to be able to enjoy that time. So, if you have the time that you want while also being able to do the things that you want to do then you should count yourself wealthy. Business Insider adds the point that wealth means you’re never stuck … you can leave jobs, relationships, houses, anything you aren’t comfortable in because you have the financial means to do so.
Finally, if you’re interested in becoming wealthy and want something actionable, I recommend reading Tom Corley’s Rich Habits. Its an excellent data driven study of the wealthy and how they got that way. Another excellent resource is Stanley And Danko’s classic book, The Millionaire Next Door. Both bodies of work provide you a realistic picture of American wealth.
Read More:
- How to Use Recurring Investment Strategies to Build Wealth
- 9 Habits of Wealthy People That You Should Follow
- Americans With $1 Million Don’t Consider Themselves Wealthy
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Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.
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