True Wealth is in the Mind, Not the Bank, Assets or Investment Account!
This blog post is the 3rd in a series of our “Mind Over Money Series”. which I will be writing in the next 10 months. I believe that having the right mindset is extremely important in reaching the financial freedom we’ve all been searching for.
I want to have a nice conversation with you now about what true wealth really is. To get a true picture of wealth, let’s go down a journey that is maybe not what you would expect. Let’s get off the beaten path of herd mentality and decide for ourselves what true wealth really is.
Learning how to think and not what to think is a skill that most people have not mastered.
When it comes to wealth, most people think of a large bank account, large investment portfolio and maybe even a large amount of assets such as houses, and investment property and yachts and vehicles and so forth. True wealth is in the mind.
In other words, most people consider wealth based on net worth. Net worth is defined as total assets minus total liabilities! That certainly is a valid way to look at it if you want to measure it this way. So let’s go down this path a little and see if we like this definition.
What is considered wealthy then? Is it a net worth of $10,000 or $100,000 or $500,000 or $1 million or higher? Who decides what is considered wealthy? Suppose you had a net worth of $200,000 in your US Bank accounts and $200,000 in your investment portfolio. Would you consider yourself wealthy?
Now suppose that we had a systemic black swan event (remember 2008?) and your investment portfolio lost over 40% which put you at $120,000 in your portfolio, and the US Government froze all bank accounts to withdraw a maximum of $300 per week (think of Greek bank run, it could happen in America). Now, what is your net worth really?
If that happened to you, would you still consider yourself to be a wealthy individual? For most people, they would not consider themselves to be wealthy anymore. They worked hard at creating what they considered wealth only to have outside forces destroyed it!
Do you truly want your wealth to be defined and in many ways controlled by forces outside of your control? We think that may not be the best way to look at what is true wealth.
So let’s go with a different definition of wealth that has less to do with your bank accounts, assets or investment portfolio. Let’s go with a definition of wealth that is more of a state of mind, and less of a given particular net worth at a particular time in your life.
These concepts have been written about by many other authors in many ways going back many centuries. They are discussed in a book entitled Thoughts Create Reality by David Huner adapted from the work of Andy Shaw and others.
I will describe a wealthy person in the following manner. A wealthy person is someone who has the following 7 concepts at the forefront of their thinking:
- They are always delighted with themselves and who they are
- They are always grateful for everything in their lives
- They always accept what is- they are responding positively to the abundance in this universe
- They always know that everything will work out best for them in the best possible way at the best possible time
- They have absolutely no regrets about the past, they only learn from it
- They have absolutely no fear of the future because they are creating their future
- Because of the above knowledge in their lives, they have freed their mind to simply create income, revenue and net worth based on the concept that money is an idea that can be created in their lives no matter what, when, or how.
So as you can see, this is truly a wealthy person. It is freed from outside influence, catastrophes or their current bank account or assets. Now you are probably thinking that you know all this, but you are still not wealthy.
There you go again, thinking that wealth is a matter of net worth! In addition, I will be so bold as to say that maybe you do not know this if you base your life and happiness on anything outside of your thoughts and mind. Let me pose a question to you.
Have you ever wondered why is it that many people who you would consider wealthy, meaning a high net worth have lost it several times, maybe even filed bankruptcy only to regain a large net worth in a relatively short time? Maybe it is because they understand the points above, even if they cannot express them.
This way of life is truly a wealth way of life. However, only you can go down this route, no one can do it for you. It is a matter of choice, your choice!
Have you ever tried to discover why people can have a huge net worth and not be happy or content in life?
Have you ever considered that even poor people, who struggle to pay their bill every month, are also not happy or content in life?
You can even place this same degree of discontent about what is wealth squarely with the middle class as they are striving to always increase their net worth to their version of what they consider wealth.
Yet, most people, on the higher side of 90% never achieve the success or net worth or wealth tied to a certain monetary value amount in their lives. The reasons are very clear! They do not seem to have a clear understanding of what true wealth is, they never seem to live life in the now, in the present moment.