What is wealth?

How do you define wealth? Is it money in the bank, a good income, or is it family, health and life itself? In any case, this is a timely conversation to have.  

We are fascinated by this question, and there is no ‘one right answer’ as life events have a habit of changing the answer, making us all re-evaluate our circumstances and motivations.

Having the reassurance of being financially independent buys freedom and choice, helping you to do things today and plan for tomorrow – but does this provide satisfaction? Wealth comes in many forms. It can allow you to be financially free to do what you love the most and live the way you want. It can also mean being healthy and knowing that your family and those you care about are free to pursue their dreams.  

But does having money or wealth allow you to take time off work to enjoy extended family holidays, or watch school nativity plays and sports fixtures? Or does the wealth driver (work) keep you away from these events, consumed in calls or emails and not ‘present’? Having success and money sometimes prevent the individual from stepping back to enjoy the opportunities they provide. 

Life events can focus the minds of us all, especially when you have the means to make changes. It’s no coincidence that the wealthy are currently some of the most educated, exercised and healthy people. Many generations ago, they were obese, ate too much and exercised too little. Meanwhile, the poor were thin, lacked sufficient nutrition and had little choice but to take what was available. However, lower incomes are now more commonly associated with poorer diets and a lack of exercise, leading to a life that is not full of wealth – be that monetary or not.  

If you’re healthy, you could already be wealthy, but equally, money does not guarantee good health.

Ultimately, having money and wealth allows you to focus your mind on the important points – distinguishing between wants and needs. While most people would accept that although money doesn’t make you happy, it does give you freedom to avoid certain financial stresses. Therefore, you need to manage that money and understand its impact on you, those around you and the next generation. Nobody teaches you how to take care of your wealth, so credible, trusted professional advisers are crucial. Their role is to help educate you and help you explore those wants and needs, given that financial literacy is rarely taught, as we instead obsess on economics. Neither the power of money nor how to take care of it is an educational priority, yet without engagement, education and working with the family and advisers, how does this change for future generations?

It’s worth remembering what many clients mention as a rule of thumb: earn a bit, spend a bit and give a bit. Supporting communities, charities and passions is vital. True wealth is not just about the individual – it’s about the power of helping others to achieve too. Knowing your figures and what you want to spend, leave behind and experience is key – building that plan and working towards those goals will give every family the best chance to enjoy the fruits of their efforts.

Ultimately, we believe wealth is about spending time on experiences and things you are passionate about and, importantly, being able to choose what you want to do – not what you have to do!