I’ve been doing a lot of interviews lately. My latest book, Rewire for Wealth, made its debut last week.
The one question I’m asked most often is this: How do you define wealth? It’s a great question. And there’s a gazillion different responses. Most people will define wealth with a dollar figure that’s at least double what they currently have.
But I see it differently. Wealth is not an amount. It’s a mindset.
I know women worth millions who are financially insecure. I know many who have far less and consider themselves bountiful. Wealth without well-being is not the aim of my book or the work I do. Financial well-being means you’re in control of your money instead of being at its mercy.
Take my example. I grew up rich, had a generous inheritance, but did I feel wealthy? Not in the least. I didn’t know how much money I had, where it was or how to manage it. And I was too scared to take control even when I found out my gambling husband was frittering it away.
Now that I’m on the other side of that crisis, I define wealth with a definition that describes the desired mindset: Wealth means you have more than enough…and you know it.
You not only have some disposable income, but a buffer against debt, a prudent reserve for unpredictable expenses, investments growing faster than inflation and a safety net that lets you sleep all night. But here’s the decisive factor: You’re fully aware that you’re in good financial shape.
In other words: Wealth is that sweet spot where money is no longer a source of stress or distraction, but a powerful tool for crafting a secure and meaningful life.
Like any tool, however, you must understand how to skillfully use it for maximum benefit with negligible risk. My latest book, Rewire for Wealth, is meant to be an operator’s guide to using the incredible tool we call money with confidence and competence.
Can you look at your finances with confidence? Let me know in a comment below.