Question from a Wealth Club member: What does it mean to be wealthy?
Answer: Wealth is a quantitative measurement.
Traditionally, this term was only used with respect to finance; but thankfully this has changed.
You can be financially wealthy but spiritually poor.
In my opinion, the two greatest two forms of wealth are spiritual fruit and free time.
So, first keep in mind that wealth’s definition has expanded a bit.However, the word wealth or “wealthy” is still predominantly used in the context of money.
Wealth groups are broken-down in so many different ways, and there have been so many outright silly arguments over this stuff; it’s crazy!
But in general, many people would agree on these six groups:
(1) Low-net-worth (investable assets under $100k)
(2) Middle market (investable assets $100k – $249k)
(3) Mass-affluent (investable assets $250k – $499k)
(4) Affluent (investable assets $500k – $999k)
(5) High-net-worth (investable assets $1m – $3.49m)
(6) Ultra-high-net-worth (investable assets $3.5m+)
Now, when someone is considered “wealthy”, that is usually referring to people from groups 5 and 6 above.
Obviously there are several factors that play into someone’s wealth, such as cash balance, debt, financial assets, and income.
Fun fact: The average HNWI has about $200k cash; not the “millions and millions” most think of that group!
Blessings,
J. Patrick Nichols