Here’s something that I thought was kind of interesting about the formula for wealth which is money + financial discipline = wealth.
From a financial perspective, I kind of agree with this just because I’m missing the passive income side here and passive income is really important. Like you can look at like dividend-paying stocks, you can look at real estate, and you can look at a whole lot of other things.
I think there are two key components here that are missing: time and well being.
With regard to time, I don’t believe that money equals time. This is something I firmly believe that saying “time equals money” is a huge slap in the face to time.
The other thing that’s missing is health, fitness, spirituality, your religion and all the other things that are not in the financial areas of your life. All of that also equals wealth. You can be the richest person on paper and be a person that is absolutely miserable because you don’t have friends or you don’t get to take trips every year and do things that make you truly happy.
So we really have to redefine what wealth means for us and make this a well-rounded definition. It’s no longer acceptable just to have, “I want $1 million in the bank.” That’s not right. No Bueno. That is not a good definition of wealth.
Let’s face it, $1 million in the bank isn’t a whole lot of money anymore even though it used to be back in the 90s when I was growing up, but not anymore.
Lastly, let’s be real about how much money is going to take for us to retire anyway and I guarantee you it’s well over a million dollars, folks. It’s well over a million bucks.
So to wrap this up, wealth isn’t all about money anymore. Define what wealth means to you, then go after that.