What Does Being Rich Mean To You?
What does being rich mean to you?
Is it owning a big house and a nice car?
Being able to buy whatever you want?
Having a net worth of £1 million? £10 million? What about £100 million?
Most people would say that being rich is having enough money to do and afford anything you want.
And the dictionary definition would agree that rich = stacks of cash:
“Rich: having abundant possessions and especially material wealth.”
But I recently came across a different definition that struck a chord:
“Rich: able to afford all the things and experiences required to fully experience your most authentic life.”
I like this definition, which I’ll call holistic rich, much better.
What Is Holistic Rich?
Holistic rich is about using money as a tool to improve your wellbeing and quality of life.
Instead of money being used as a yardstick for measuring success, or to impress others, or celebrated for the material goods it can buy, it’s used to enrich your life.
Holistic rich still values wealth, but it also places value in being rich in health, relationships, and experiences.
It’s different from traditional rich in two main ways:
- It’s all-encompassing; it’s not money or nothing.
A rich life is one where you’re satisfied (and ideally continuing to grow) in every area that’s important to you.
Your value system is out of tune if building wealth is having a detrimental effect on your health or it’s alienating the people who love and care about you.
There’s no point in amassing a huge fortune if you have no true friends to enjoy it with.
And time freedom would be worthless if you’ve lost touch with the people you enjoy spending time with.
While there will be seasons of life when you must work longer hours or prioritise saving over spending on fun experiences, never put that much emphasis on making and accumulating money that you forget your reasons for doing so in the first place.
Building wealth is the vehicle to your goals, it’s not the goal itself.
- It focuses on cashflow.
“Traditional rich” tends to focus on net worth.
While net worth can be a useful measure of how you’re faring financially, a high net worth doesn’t guarantee a happy and fulfilling life.
Someone with a high net worth that’s tied up in their house, cars, and valuables might even be miserable if they have to work at a job they hate to sustain it.
A better gauge of your wealth is how much time your money allows you to spend doing what you want.
Holistic rich is about creating the cashflow to afford the things and experiences that will bring maximum joy and allow you to live “your most authentic life”.
Instead of being concerned with a vanity metric, the focus is on accumulating income-producing assets that allow you to spend your time doing what you value most.
Holistic Wealth Is Achievable
Everyone’s “rich number” is different.
But I bet that if you added up the cost of everything you want to do, see, own, and experience in your life, it’s probably not tens of millions.
Do you really need to be chauffeured about in a Gulfstream G650ER?!?
The things that we value most – time with family and friends, travel, hobbies – don’t cost all that much and require more time than money to pursue.
I’d bet you’d be over the moon if you had £2k-£5k dropping into your bank account every month without having to work for it.
Think about it: you would have all the time in the world to do whatever you wanted. You could catch up with friends, improve your health, or get really good at something you enjoy.
And the good news is that creating that kind of passive income is achievable during a typical career and could even be done in 5-15 years with proper dedication and focus.
Unlike traditional rich, holistic rich is within reach of almost everyone.
And better yet, it leads to a much more satisfying life than the pursuit of money alone.
What’s Your Number?
Now, over to you…
Have you thought about your holistic rich number?
How much passive income would you need to live your most authentic life?
How would you spend it to keep growing while living a fulfilling life?
And more importantly, what’s your plan for creating that income?
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Hi! I'm Jamie
I’m a 30-something money blogger that writes about saving, frugal living, investing and entrepreneurship.
I achieved financial independence at 30 through hard work, saving and learning to invest.
On this blog, I share everything I've learned about money to help you build a life you love, free from money worries.
If you'd like to achieve financial freedom, escape the 9 til 5 and spend your days however you want, then I know you'd love the newsletter.
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