Definition of Wealthy

What is the Definition of Wealthy?

Most of the people in this world don’t know that Rich & Wealthy both are entirely different things. To be a rich not necessarily mean wealthy. And most of the people also don’t know that, wealth is not counted in money but it is counted in Time.

If you see the definition of “Wealthy” in Dictionary than, wealthy means abundance of material possession. So According to the literature, if someone has so many cars, mobiles, clothes and watches than also he is wealthy. But according to our definition, they are not wealthy.

So What is the meaning of Wealthy?

Well, Wealth is counted in time. Suppose if today you stop working than how many days, months or years you can maintain your same level of life style if your wealth. Suppose you have a portfolio of Rs.10 Lakhs and your monthly expense is 1 lakh rupees than your wealth is 10 months.

The Wealth is counted in time and not in money. Now, suppose if today you stop working and still you can maintain the same level of life style for the rest of your life than you are wealthy.

Suppose if you have $ 1 Million Net worth and your annual expense is US $ 5,00,000 than technically you are rich but you are not wealthy because how many years you could survive on $ 1 Million if your annual expense is half a million dollars? Probably 2-3 years and not more than that.

So this person is not wealthy according to the definition of wealthy. Rich doesn’t necessarily mean Wealthy. Doctors, Lawyers, CA and other high status professionals are rich but they are not wealthy because they still have to work hard to maintain their life style. And if they stop working than they could not survive for more than 2-3 years.

While Wealthy person is one who can survive and maintain the same level of life style for more than 10 years, probably rest of his life.

So How anyone can become Wealthy?

Well, anyone in this world can become wealthy. But for that, you have to develop multiple Passive income streams. Typically a wealthy person has worked hard since his early life to develop Passive Income streams mainly Businesses and that’s why one day comes when his Business starts working and growing even without his presence and generate totally passive income for him.

The reason why most of the people in this world can’t become wealthy is because since early life they mainly focus on active income. They trade their time in exchange of money at their job places and thus, they fail to develop any passive income stream in their lives and that’s why they struggle for the rest of their lives financially and can’t become wealthy.

So focus on growing the Asset Column of your Financial Statement because assets bring passive income into your bank accounts….!!!