What is wealth? Most people will tell you that they want to be wealthy, but what exactly is wealth, and what does it mean to be wealthy? Why do people want to be wealthy? Why are they not wealthy? Isn’t cash king? Maybe they are wealthy and do not know it. Does anybody know?
If you want to be wealthy and create wealth, it helps to understand what it is and what it’s not. Wealth is as old as human history. Wealth is all the stuff we want, and, I believe, you can have wealth without having a lot of money.
What Exactly is Wealth
The word wealth is derived from the old English word wela, which is from an Indo-European word stem. Some define wealth as the abundance of valuable resources. However, the meaning of wealth is context-dependent, and there is no universally agreed-upon definition.
Generally, economists define wealth as anything of value. Therefore, if an individual, community, region, or country possesses a large number of valuable resources, they are perceived as wealthy. Some see wealth as the net worth, the most common measure of wealth, of a person, household, or nation. Net worth is determined by subtracting liabilities, what you owe from assets., what you own of value.
The Wealth of Nations
In the book, The Wealth of Nations, by Adam Smith, he described wealth as “the annual produce of the land and labor of the society”.In this context, produce is that which satisfies needs and wants. He saw wealth creation as the combination of materials, labor, land, and technology in such a way as to capture a profit.
Another definition of wealth is controlling or possessing an abundance of items of economic value. A wealthy individual, family, or nation has accumulated substantially more than their peers and others in their society or group of reference. Measurable wealth typically excludes intangible assets such as human and social capital. The opposite of wealth is destitution.
Wealth Vs. Money
I believe wealth is what we should seek and aspire to, and not necessarily money. Consider this, if wealth is so important and everyone wants to be wealthy, why does money get so much more attention? Do we want money or wealth? Money and wealth are not the same things. Having a supportive and loving family and great friends in abundance is considered wealth by some people.
Wealth is a mindset. Perhaps you are more wealthy than you believe you are.
Wealth is not new. Historically, the sheep owner that owned more sheep was considered wealthier than the one with fewer. It is money that is a comparatively recent invention.
Some think that businesses make money, and some think they create wealth. They create wealth by doing, making, or supplying what people want. Still, want to be wealthy? Perhaps you are wealthier than you think. What are your thoughts on wealth?