I’m sure you have heard the saying “health is wealth” and by that definition it is clear that wealth is not money. So what is wealth?
Some would say wealth is having enough to live how you want, where you want, with whom you want and more.
Others would see wealth as being rich, being a millionaire and able to build or buy the house of their dreams or drive the car of their dreams and live in the suburb of their dreams in the country of their choice.
Many people would associate wealth with rich people, actors, and pop stars that live in mansions in exotic locations.
Wealth is described as the abundance of valuable resources or material possessions and yet economists describe wealth as ‘anything of value,’ which means that it is different for each and everyone of us. Values are unique to every individual.
If I come from the point of view that wealth is having things of value it is fair to say that many people value having a comfortable lifestyle and doing what they really enjoyed doing.
Taking this a step further to have a comfortable lifestyle you need to have a comfortable home and enough money to live comfortably.
That being the case it may surprise you to learn that the majority of people live on a pension. So you might have a comfortable home and live on a pension but would that afford you a comfortable lifestyle to do what you really enjoyed doing?
Would it surprise you if I told you that one percent of the population owned fifty percent of the assets in the US and I would suggest that it is not that different here in Oz.
What I have learned through my work of assisting people to create wealth is that most people do not think about it till it is too late to do anything about it. Sad but true!
Most people seem to think that their superannuation will give them a comfortable lifestyle, but generally this is not the case. The returns on Super are disappointing to say the least and if you wanted an income of $60,000 per annum in your retirement you would need over $1.5M in the bank.
There are many factors that create this situation but from my experience four things stand out that can address this situation.
- The right Mindset
- The right Information
- The right Strategy
- The right Actions
I will address these topics in future posts, but if you have any questions feel free to call me on 0418 31 32 99.
Till next time