Wealth is defined in the Merriam-Webster dictionary as, “an abundance of valuable material possessions or resources”. While this is one measure of wealth, many think about wealth as something else.
In Morgan Housel’s book, “The Psychology of Money”, Housel sums up wealth in the following way:
“The highest form of wealth is the ability to wake up every morning and say, “I can do whatever I want today.”
He further makes the point that one of the key drivers of happiness is:
“Control over doing what you want, when you want to, with the people you want to.”
You could think about this as control, freedom, or flexibility, or some combination of the three.
The meaning of wealth can be different from person to person. However, it is worth thinking about what your definition of wealth is and what steps you can take to pursue it.
Real wealth comes down to what you value. You may value spending time with loved ones, giving back to your community, or experiencing adventure. Others may value working at a job they love, not having a schedule, or creating a financial foundation for following generations.
A popular question in the financial planning profession is, “what are your goals?”. This can be hard to think of an answer to immediately, as many people haven’t spent a long time considering it.
We encourage clients to spend some time reflecting on what their values are and how they can use their wealth to support these values.
In thinking about how we have seen clients use wealth, the following examples come to mind:
- Adventure – Retiring early and purchasing an RV to travel to state parks across the country.
- Service – Pursuing a call to mission work and stepping away from a promising job mid-career.
- Family – Stepping away from a successful executive role to spend more time with their kids.
- Education – Funding college savings accounts for young kids.
- Legacy – Purchasing a family cottage for current and future generations to enjoy.
Helping our clients align their money with their values is one of the most rewarding parts of what we do. It starts with taking an inventory of what is important to you and figuring out your definition of real wealth. The next step is putting a plan in place to use your resources to reach the goals you’ve defined. If you would like to talk with a financial planner about how you can use your investments to achieve what is important to you, please schedule a call with us here.
The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.
Advisory services offered through Financial Life Management, LLC – Doing Business As – SummitView Advisors, a Michigan registered investment adviser. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment advisory services. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.