Wealth is being able to afford your lifestyle and still have money in the bank.
I’ve known a few folks who fit the “millionaire next door” stereotype… leading moderate but comfortable lives – with the freedom to do whatever they want. My dad was one of these. Lived in a 2000sf tract home in UC – but circumnavigated the globe several times in his retirement. With lots of shorter trips in between these 3-4 month trips. He paid cash for it all. If he wanted some new electronic toy, he had the money to buy it with cash. But he wore clothes that were less than fancy, the house was well maintained, but not upscale, he rarely ate out.
Yet I would consider my father wealthy because he had total financial freedom. He may not have had a beach front mansion nor mercedes, but he had everything he needed for a very content life with no debt and cash to do the things he was passionate about: 4wd trips to baja and travel around the world.
I aspire to his wealth. I bought the house from him – it’s still not fancy – but suits our needs. I’m working on getting the cash reserves and mortgage retired to live the wealthy part – no worries about money and freedom to travel or do whatever my passion is.
Fancy stuff doesn’t represent wealth. Freedom from worries about money is wealth.
