What Really is Wealth?

by Stan Sarkauskas,

Q. A group of our friends was sitting around the other night and we had a question. What is wealth? We thought we would ask you and find out your opinion.

A. What is wealth? That is a question most of us don’t ponder very often, but we should. I have my own definition for wealth that I have simplified over the years. Wealth is freedom! I believe that wealth frees us from worry, worry about how we will live and eat. Wealth frees us from the worry about how our children and grandchildren will live and be educated. Wealth frees us from the concerns of educating the next generation of our blood line.

So my simple definition of wealth is freedom!

It is the freedom to live the kind of life that is meaningful to each of us without compromise. I have found that the amount of money needed for each individual or couple varies depending on each person’s definition of wealth.

So it only makes sense that wealth is NOT defined by how much money you have. If you are still worried, then regardless of how much money you currently have, you are not free and if you are not free, you, by definition, are not wealthy.

But for most of us, wealth is not only about the type of lifestyle we will have, but about subsequent generations. If your investments continue to grow, even as you receive all the income you need to support your lifestyle, you will be able to leave your financial freedom to subsequent generations and provide freedom to others. And that ability is my definition of “wealth”, regardless of how many or few dollars are involved.

So how does one become wealthy? It all starts with a plan, then implementation of a plan and ultimately a great advisor that will keep you from making big mistakes, especially when it appears that the entire world is in a state of panic.

If you really want to achieve wealth, you need the professional services of a great adviser. No one would try to do their own brain surgery, even if they were a surgeon. No one should try to make financial decisions about their own lives without the assistance of a great financial adviser. Why? Because of the emotional factor and fear. A good adviser will see the truth, beyond the fear and around the emotions that surely are tied to such decisions.

So here are the 5 keys to wealth;

1. Be an owner and not a loaner.

2. Don’t panic: the key to wealth in equities is not to panic out of them.

3. Don’t try to time the market: you can’t and don’t need to.

4. You can’t predict but you can plan: month in and month out, patience and discipline should be your core values.

5. Don’t try to go it alone: hire an adviser whose primary function is to help you be better than you are.

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