The word “wealth” might conjure up visions of overflowing bank accounts, sprawling properties, and luxury goods. This somewhat traditional view associates wealth with financial assets, income, and material possessions.
While achieving financial security is undoubtedly important, limiting your understanding of wealth to material gain can have significant consequences for your financial behaviours and overall wellbeing.
Here’s how to broaden your definition of wealth and change your outlook.
Viewing wealth as purely monetary could create self-imposed limitations
In a world where individuals are often driven by economic success, it’s easy enough to understand why money and assets take centre stage. They can provide a sense of security or accomplishment and open doors to new opportunities.
However, when this becomes the only definition of wealth, you may encounter several pitfalls.
A focus on accumulation could blind you to other opportunities
An intense drive to accumulate more money can lead to neglecting other important aspects of your life. You might be making decisions about your career, relationships, and personal growth through a skewed lens of financial gain. This could potentially lead to you sacrificing experiences and connections, which all contribute to a richer life.
As Bronnie Ware, a palliative nurse, states in her book and blog, the Regrets of the Dying, one of the most common regrets she heard in her line of work was: “I wish I hadn’t worked so hard.”
Comparison and competition can be an endless road
Defining wealth purely by monetary value can fuel social comparison. We tend to measure our financial success against others, which can lead to a perpetual cycle of wanting more, regardless of our current financial standing.
When you’re constantly comparing resources, increases in income or possessions don’t necessarily lead to lasting happiness. Here, you might find that your focus shifts from personal wellbeing to keeping up with, or surpassing, others.
The fear of loss can create a feeling of scarcity
When your wealth is defined solely by your finances, the fear of losing it can become all-consuming. This anxiety can drive you to make overly conservative or even irrational financial decisions, which can not only slow your growth but also create a vicious cycle of stress.
The endless pursuit of more could leave you financially worse off
You might find that if your focus is purely monetary, you begin to crave the accumulation of material possessions.
You might perceive items such as new cars, high-tech gadgets, and extravagant purchases as the primary measure of your success. This could lead to unsustainable spending habits, debt accumulation, and a short-term sense of satisfaction that quickly disappears.
While monetary wealth is a valuable tool, viewing it as the only measure of wealth has the potential to create a narrow and potentially unfulfilling life.
Wealth as a non-monetary concept can create richness in itself
A more holistic understanding of wealth could help you recognise that true richness encompasses more than just money. It may include intangible factors that contribute significantly to your overall wellbeing and life satisfaction. Here are some examples.
- Time freedom: Having control over how you spend your time can be a significant form of wealth. This often means having the flexibility to pursue your passions, spend quality time with loved ones, or simply having the capacity to do what you’d like with your days.
- Strong social connections: Meaningful relationships with family, friends, and community can provide invaluable support, joy, and a sense of belonging. Research from the Harvard School of Public Health shows a strong correlation between social connections, physical health, and mental wellbeing.
- Purpose and meaning: Feeling that your life has a sense of direction can be a profound source of wealth. Whether through work, volunteering, creative pursuits, or raising a family, having a sense of purpose can provide motivation and fulfilment.
- Physical and mental health: Our wellbeing is often core to experiencing and enjoying life. Good physical health can provide energy and vitality, while strong mental health can foster resilience and peace of mind.
- Experiences: The memories, lessons, and personal growth gained through experiences can enrich your life in a way that material possessions often can’t.
Finding a balance could help you cultivate a truly wealthy life
Developing a more balanced perspective on wealth often involves building a healthier relationship with money itself. This is an ongoing process that could lead to greater peace of mind and more intentional financial choices.
Some steps could include:
- Self-reflect and take time to examine your current beliefs about money and wealth.
- Identify your personal values and align your financial decisions accordingly.
- Shift your focus to help you allocate resources for experiences, improving your health or wellbeing, or supporting causes that resonate with your values.
- Practise gratitude to help diminish feelings of scarcity and the desire to always have more.
By embracing a more comprehensive understanding of wealth and nurturing a healthier relationship with money, you could move towards a life that is not just financially sound, but rich in other meaningful ways.
In doing so, you might find an improved long-term perspective for your financial plan, particularly when you focus more on your core values.
This is something we can help with.
Get in touch
We can help you tailor your financial plan according to your needs and circumstances, helping you understand how your money can work for you, not how you can work for your money.
Email us at [email protected], or call 01273 076 587 to find out more about what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
