How Wealthy You Are?

Posted date: 30/08/2023 10:02 PM

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I hope, you are not expecting the meaning of “Wealth” here. But it’s important to understand the meaning of wealth in order to get started with.

Many people misinterpret wealth with money, while money is a subset of wealth. Wealth is an accumulation of economic valuable resources that can be measured in terms of either real goods or value of money. It is otherwise known as the Net worth. Net worth is the most common measure of the wealth, determined by the total market value of all physical and intangible assets owned subtracting all the debts.

In common terms, a specific people, community, company or a nation can be called as wealthy, if they can be able to accumulate a multiple valuable resources or goods and can spend them as per their wish without any restrictions. Wealth can be defined as the assets minus liabilities. In order to calculate the net worth or the wealth, first one needs to understand different categories of wealth.

So what about you?

How much wealth you have? I’m not asking about your bank balance, your luxury cars or your new home which you have taken on a bank EMI. Because all of these are your liabilities, not your assets.

As I have mentioned money is a subset of wealth, here I would like to mention that there are many faces of wealth, but it can better explained with 6 major categories.

Financial Wealth:

It is the most common and understandable type of wealth. You can be treated as wealthy when you will not have to work for money, instead money will work for you. Financial wealth is all about money or the financial assets an individual owns. Many people assume that the persons having a lot of money can have everything excellent in their life, but this kind of happiness are up to the baseline level of life.

If your goal is happiness, then you have to position yourself in such a level where you never have to worry about money again and the flow of income will be automatic like royalty nature of income. Where there will not be a recession on your source of earnings.

Imagine a state of feeling, how that would change your relationship with the people around you and your family. That is a kind of happiness you can grab and for this you need some other kind of wealth other than the financial wealth.

Few people having inherited financial wealth, but it will bring happiness rarely. The real happiness comes when you are able to earn it.

Social Wealth:

A social connection can be defined as the potential to interact with a person or organization or community either directly face to face or over phone or in a virtual mode on internet. It would include friends, family members, colleagues, relatives or community members. Usually, the wealthy people have a large community in their connection.

Like financial wealth, you also inherit some connections like family members and relatives while you earn some connections like spouse, friends, co-workers, business partners and community you have made. Here each connection has its own value depending on the depth of the relationship. You can invest effort to nurture the relationship by adding value to it or you can build new connections.

The social connections also might be negative and these negative connections are called social debts. To get the total net worth of your social wealth, you can add the valuable connection and subtract the negative connections or the social debts.

In your social media channels, the people follow and get connected with you are the social assets for you while those who interpret you in a negative way are called the social debts for you. But sometimes, those negative communicators are also proved as an asset as the negative feedback will help you improving yourself and your core value.

Social wealth need time to be built and you should utilize it carefully. Else this is a kind of wealth you can lose very fast.

Physical Wealth:

Everyone knows “Health is Wealth”, but how & why?

Physical wealth means your health & fitness along with your vitality. Perhaps it’s the most critical and under-appreciated type of wealth.

You might have listened about the comparison-

If you ask a monkey to choose among 100 bananas and a 100$ currency, the monkey will choose 100 bananas as the value of the currency is not understood by the monkey.

Similarly, if you ask an ordinary person to choose among the bundle of 100$ and good health, the person will choose the bundle of 100$ as the value of the health is not understood by an ordinary people. When you will be able to understand the value of health, you will be shifted from ordinary to extra ordinary. Without physical wealth, you can’t enjoy any other kind of wealth.

Physical wealth is a kind of wealth, that can’t be accumulated in a single day or over-night. You need to develop some habits and small but continuous action. 3 major habits and actions are needed to achieve a good health.

· Diet or Nutrition: Basically natural diets. You need to adopt some diets while avoid some.

· Exercise: Mild to moderate exercise you need but in a continuous basis.

· Sleep: A balanced sleep is as much important as diet and exercise. You need at least 6–8 hours of sleep daily and need to avoid accessing the phone at the time of sleep.

With a simple change in diet, life style and sleep pattern, you can experience a huge change in your wealth as all of these are directly proportional to your financial wealth. The physical wealth is again very closely associated with the mental wealth, about which we’ll discuss in the next section.

Mental Wealth:

Mental Wealth refers to the mental health, mental fitness and the creating ability. Mental health is often overlooked as many of us still don’t think that a balance in mental and physical wellbeing is necessary for a balanced healthy life. Even if when a patient is being treated by a physician, the mental or psychological factors are often ignored.

Mental wealth may include will & emotion, intellect, memory, long term accumulation of knowledge, mindfulness, faith & believe and spirituality etc.

Like we do exercise regularly to build muscles and maintain the fitness of the body, we have to learn a lot in regular basis to improve the mental health which will lead to improvement of the mental wealth.

Mindfulness is another way to improve mental wealth. It’s the awareness of oneself to be built through several processes like meditation, breathing, spirituality & faith.

Time Wealth:

Great people say, “Time is Precious” and we know all the precious things can be a Wealth. Every person is a “Time Billionaire” when he/she is young. It means they are rich with time. But many people fail to understand the value of this precious asset in the young stage until it’s gone. You can get your financial wealth back, if it’s gone due to any reason. But it’s impossible to get the time currency back, once it’s gone.

So, you have to cultivate the time and in order to cultivate it, you need to understand the formula of time first. Let’s take the example of Anand & Vikash to understand the time formula.

Anand & Vikash were very close friends and lived in a small village. Though both of them belonged to middle class families, but were very ambitious. They studied together and started their first job together. But the approaches to become rich was very much different from each other.

Both of them were earning around $1000 every month and were working very hard to earn more. One day their boss told them, “I’ll provide you double the amount due to your hard work, but now you tell me how much will be your savings within your entire career?”

Anand calculated and replied, there are 30 years of working period for me and if I save $1000 every month, it means I can save $1000 x 12 (months) x 30 (years) = $ 360,000.

Boss said, absolutely correct. The calculation is just perfect. And what about you Vikash?

Vikash replied, if the earning will be doubled, he will be able to earn that much in 15 years, for which earlier he needed 30 years. It means, he can save 15 years of time. He will be free before 15 years and can enjoy the rest of his life.

Here you can observe that, both of them are right at their place, the way of thinking is different from each other. Anand emphasizes on financial wealth where Vikash focuses on time wealth. Here Vikas can live his life like a “Time Billionaire” as he understands the formula of time in a better way.

Time is a rare asset now a days as we are spending most of our time in earning money and building our status. It is very much important to have some “Me Time” everyday as time is such a wealth which can’t be saved. Either you have to utilize it or waste it. So, the choice is yours.

Brand as a Wealth:

In the modern business landscape, the concept of wealth extends beyond tangible assets and financial success. One invaluable intangible asset that holds immense value is a brand. A brand represents the collective perception, reputation, and recognition that a business or individual holds in the minds of their audience. It is a powerful form of wealth that can significantly impact success, growth, and influence.

At its core, a brand is built on trust and credibility. When a brand is synonymous with reliability, quality, and authenticity, it becomes a valuable form of wealth that attracts loyal customers, partners, and investors. A strong brand has the ability to command premium pricing, increasing profitability and ultimately contributing to financial prosperity.

Moreover, a well-established brand creates a competitive advantage in the market. It differentiates a business or individual from competitors, allowing them to carve a unique position and capture the attention of their target audience. This distinctiveness enhances market visibility, fostering customer loyalty and long-term success.

Brand as wealth also extends to personal branding. In a world where networking and reputation are crucial, individuals with a strong personal brand are more likely to attract career opportunities, partnerships, and collaborations. A compelling personal brand can elevate one’s status, influence, and earning potential, opening doors to new possibilities and ventures.

A brand’s image is an integral part of its wealth. The visual representation, messaging, and emotional connections that a brand creates leave a lasting impact on the audience. This positive perception becomes an asset that can be leveraged to expand into new markets, diversify product offerings, and enter strategic partnerships.

However, like any form of wealth, a brand requires nurturing and protection. It must remain consistent, relevant, and responsive to changing market dynamics and consumer preferences. Brand equity, built over time through positive customer experiences, can be eroded quickly by a single negative incident or lack of authenticity.

In conclusion, a brand is an invaluable form of wealth that transcends financial metrics. It embodies the trust, loyalty, and recognition that a business or individual holds in the hearts and minds of their audience. As a valuable asset, a strong brand commands a premium in the market, attracts opportunities, and drives long-term success. In the digital age, where perception is magnified, the importance of building and safeguarding a brand as wealth cannot be overstated. A well-crafted brand that resonates with its audience can be a transformative force, propelling individuals and businesses to unprecedented levels of prosperity and influence.

You can find the details of the process of Wealth Accumulation and Wealth Preservation in the below mentioned book.

You can avail the eBook on Amazon. If you are in India, then just click here for the paperback with the coupon code “WEALTH” for a special 25% discount on the book.

I can be connected on LinkedIn.

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