By Gary, on March 13th, 2012
True Wealth is a tough term to define. It varies much for each person, each family, each business, etc.
Some define true wealth as having more and more money, having more and more assets, having a cash flow that grows and grows, etc. Some define it as having no connection to the notorious grid, going it alone with sufficient cash to pay for food, clothing, housing, auto and entertainment. It is a wide range and nearly un-definable given no context.
So you will have to do this: define your context.
What is it that helps you define this context? I would propose that the definition of who you are and who you want to be as a business, family or person will help you define what it is: true wealth. This will take serious and sufficient thought and some introspective work.
Mine is this:
- True wealth is to have enough cash to spend it or not to spend it, my choice.
- True wealth is to have the assets to insure that the cash is still there.
- True wealth is to have a sufficient cash flow to buy or sell the assets if I want.
So, my definition of True Wealth boils down to having financial freedom and financial protection.