Money

Image by Nattanan Kanchanaprat from Pixabay

Most people measure wealth by the size of your house and your bank account. And they’ll probably include your investment portfolio.

But I want to give you a different way to measure wealth, something I learned while reading “Rich Dad, Poor Dad.” And it’s this: Wealth is measured by the number of weeks you can go without a paycheck while maintaining your current standard of living.

People who can go six months without a paycheck are far wealthier than people who can only go six weeks. And those who never have to work at all are the wealthiest of all.

Now, society says that we accrue wealth by earning more money. And I agree with this, to a point. But our expenses tend to grow in proportion to our incomes. We make more money but also pay higher income taxes, buy more expensive homes, drive more expensive cars, take expensive vacations, spend more on food and entertainment, etc.

This is why many high-paid professionals, like doctors, still live paycheck to paycheck. They don’t have enough money to sustain their lavish lifestyle for more than a few weeks.

The secret to building wealth is to keep your expenses low as you gradually grow your income. Over time, you’ll spend less time working for a paycheck and more time doing what fulfills you and relaxes you. Until you reach that blessed day when you don’t need a paycheck at all. Then you’ll be wealthy and free to spend your time however you wish.