My dear Friends,

Have you ever wondered about the true essence of your wealth? As high net-worth women, our bank accounts flaunt single or multiple seven-digit figures, smartly invested and conscientiously managed.

However, you still need to stay financially prudent; this peculiar sense of restriction keeps persisting, challenging the notion of absolute freedom.

This question keeps lingering: Are we authentically rich, comfortably well-off, or simply hovering above average?

What does ‘rich’ mean anyway beyond our unique context and transcending societal expectations?

Join me as I do a reality check on the intricacies of being rich, unravel its meaning, and carve our own understanding of prosperity.

Rich or not so rich

Now here is the truth, having a million dollars doesn’t automatically mean you’re rich. It may grant you the label of being in the high net worth (HNW) category, but to be considered rich goes far beyond a single figure.

Being wealthy is about the level of financial freedom and opportunities you can access. It’s about having the resources to live comfortably, pursue your dreams, and build a secure future.

While a million dollars can be a significant milestone, it’s important to consider your overall financial picture, including assets, investments, and long-term financial goals.

Net worth and income

When measuring financial richness, we often turn to two trusty sidekicks: net worth and income.

“Quick Calculation: Net Worth = Assets (cash, investments, and other equity) – Liabilities (debt)”

Net worth, the value of all your assets minus your liabilities, measures your overall financial standing. It encompasses properties, investments, savings, and any other valuable possessions.

And then we have income, the money flowing into your pockets. The higher the income, the more wiggle room you have to fund your dreams and desires. But here’s the deal: these metrics alone won’t reveal the whole picture.

Financial richness isn’t just about numbers; it’s about the freedom to live life on your own terms, make smart financial choices, and building a future that excites you.

A matter of definition

The benchmark for being called “rich” can vary depending on different factors such as location, personal circumstances, and societal norms. No universally defined threshold universally designates someone as “rich.”

The wealth management industry stopped years ago to label people as being rich or poor, for that matter. Usually, they attach the label HNW to people having between $1 Mio. and $5 Mio. in investable assets. Those with more than $5 Mio.-$10 Mio. in investable assets are called HNWI. Anything beyond $30 Millon is considered UHNW or truly rich.

Yet, for some, it may be a specific net worth amount, such as having a million dollars or more. Others may consider a certain annual income level or owning valuable assets as the criteria.

However, it’s important to remember that “rich” is subjective and can mean different things to different people. It’s more than just a number; it encompasses a sense of financial security, comfort, and the ability to afford a desired lifestyle.

Ultimately, what qualifies as “rich” is a personal perspective shaped by individual values, upbringing, personal wealth, aspirations, and the context in which one lives.

Rich vs richness

Sure, we all know that money gives us certain comfort and freedom. Nobody truly believes that we can live on happiness alone. In fact, a recent study in the US showed that people´s happiness can indeed be bought. $500.000 yearly income seems to be the price tag for ultimate happiness in the US. In India, however, $95.000 are enough for ultimate happiness.

Really? If happiness really has a price tag, we need to talk about the dark side of being blinded by financial figures when it comes to gauging wealth.

Numbers can be shiny and impressive, but they don’t tell the whole story. Think about it: your net worth might soar, but does your happiness?

True richness goes beyond what can be measured in whatever currency. It’s about the experiences that make your heart skip a beat, the laughter that echoes through your life, and your impact on the world.

So, let’s embrace a more holistic view of wealth that also celebrates personal fulfilment. Well-being and a life rich in love and laughter are vital to a wealthy and extraordinary life.

“Let me tell you about the very rich. They are different from you and me. 

F.Scott Fitzgerald, American novelist and author; 1886-1940

Beyond the surface

Did you know that being rich is frightfully complex? It’s like navigating a maze with hidden pitfalls and golden opportunities. Beyond the glamorous facade, there’s a world of financial intricacies to unravel.

Managing wealth, making wise investments, and staying grounded is a delicate dance.

Being rich means juggling responsibilities, balancing dreams with practicality, leaving a legacy and finding your unique definition of abundance.

Stability, security and freedom

Believe me, I know about financial stability, security, and freedom’s vital role in defining true wealth.

Building wealth is like constructing a solid financial fortress that empowers us to conquer the world. Stability serves as our rock, allowing us to weather any economic tempest.

Security is our guardian, ensuring our wealth is safeguarded for future generations.

Most importantly: freedom. It grants us the power to shape our destiny, indulge in life’s luxuries, and leave a lasting legacy. Many in financially abusive relationships feel poor despite being surrounded by luxury.

Together, these pillars form the foundation of financial empowerment, providing the tools and confidence to navigate the complexities of wealth.

Sufficiency and contentment

Let’s talk about sufficiency and contentment—the secret recipe for financial richness.

It’s like finding the perfect balance between indulgence and responsibility, between extravagance and mindful wealth management.

Sufficiency whispers, “You have more than enough,” while contentment shouts, “Find joy in what you already possess!”

Truly rich people rein in their spending impulses, keep budgeting and focus on investing rather than overindulging.

Remember, true financial richness lies not in reckless abundance but in the mindful pursuit of balance and lasting prosperity.

It is a choice

Lifestyle choices, financial responsibilities, and future planning determine whether we are rich.

It’s like a complex dance where every step matters. Making the right choices determine our financial trajectory, shaping our spending habits and defining priorities.

Financial responsibilities demand our attention, reminding us that money doesn’t manage itself. And future planning, it’s the secret sauce!

So, let’s strut with confidence, make savvy choices, tackle responsibilities head-on, and plan for the extraordinary future we deserve. With each decision, we inch closer to the pinnacle where our lifestyle aligns with our aspirations and our bank accounts match whatever we aspire.

A psychological dimension

The emotional and psychological dimensions of being rich, where societal pressures and expectations influence the interplay between wealth and happiness, are worth exploring.

Society often sets high standards, defining success and happiness through material possessions and extravagant lifestyles. Striving to meet these expectations can create confusion. Rich people should stay humble yet use a private plane and have a yacht. Rich women are supposed to go shopping 24/7, wear designer clothes, high heels, full makeup and big jewellery while being uber-philanthropic, funding start-ups, saving the environment and running a big house.

The media plays a disastrous role in shaping people‘s perception of what a rich woman should be like. Through glossy magazines, reality TV shows, and social media, it perpetuates unrealistic standards. It fuels the pressure on women to conform to certain images, behaviours, and lifestyles, leading to a distorted perception of what it means to be a wealthy woman.

The weight of social pressures and expectations can be overwhelming. Whether it’s the pressure to maintain a certain image or the fear of judgment from others, these external factors add a layer of complexity to our relationship with wealth.

Amidst the noise, remember that your journey to financial happiness is deeply personal. By embracing your individual values, needs, and aspirations, you can carve your own path to wealth. Let’s prioritize our well-being over societal expectations, creating a space where our financial decisions align with our authentic selves.

Being wealthy, or rich for that matter, has an added responsibility: securing wealth by making informed decisions. This is why women need to foster a culture of financial literacy and open dialogue and break down the barriers that hinder women from fully embracing their financial power.

Women can rewrite the narrative by embracing financial education, seeking support, and empowering themselves. However, they need to see the urgency of doing so, first.

The reality check

If you really want to find out if you’re truly rich, buckle up for a personal reality check. Fear not, there is no need to don a top hat and monocle, nor will you need to know any coded financial jargon.

Your check list

Remember, conducting a personal reality check is an ongoing process. Regularly revisit these steps to reassess and refine your financial plan as your circumstances and goals evolve. By staying proactive and informed, you can take control of your financial journey and pave the way to long-term financial success and security.

A different lens

Regarding perspectives on being rich, experts, entrepreneurs, and individuals share diverse viewpoints. Experts emphasize financial abundance as a key indicator, citing benchmarks like having a net worth of $10 million or more. Entrepreneurs argue that richness lies in the freedom to pursue passions and create impact. Meanwhile, individuals find richness in experiences, relationships, and personal fulfilment.

There is another often overlooked factor: roots and upbringing. Someone raised with a silver or even golden spoon in their mouth will invariably have a different perception of the meaning of rich than someone from a humble background. A million in the bank for one radiates riches, while the other trembles at the thought of destitution.

Ultimately, it’s crucial to remember that richness is subjective and deeply personal. It’s about defining your own parameters and finding a balance that aligns with your values and aspirations.

Whatever you embrace, be it the wisdom of experts, the spirit of entrepreneurs, and the insights of individuals, ultimately, let your unique perspective shape your definition of being rich.

Shaped by the mindset

Your unique values guide the way you define and experience wealth. For some, it may be the freedom to support causes dear to their heart, while others prioritize creating a legacy for future generations. Yet others think money is there to be splurged and to have fun.

Your priorities influence how you allocate resources, whether it’s investing in personal growth, nurturing relationships, savouring life’s adventures or going on a spending spree.

Ultimately, it’s about aligning your wealth with what truly matters to you. Reflect on what ignites your passion and brings fulfilment. Consider the impact you wish to make and the values you want to embody.

Remember, richness goes beyond bank statements; it’s about living in harmony with your core beliefs. So, let your values be your compass, guiding you to a vision of financial abundance that resonates deeply within.

There is a gigantic difference between earning a great deal of money and being rich.

Marlene Dietrich, German-American Actress, 1901-1992

Question time

From time to time, we must challenge the status quo and redefine our perspectives on richness.

Question the norms, dismantle the preconceived notions, and dare to discover what truly ignites your soul. It’s your journey, after all. So, let go of societal expectations, trust your intuition, and craft a definition of richness that aligns with your unique desires and aspirations.

Embrace the power to rewrite the script. You have the ability to shape your own narrative.

Beyond wealth

Sorry to say this, but however wealthy you are, you will not escape financial goal setting unless you want to end up in poverty. If you think this can never happen- believe me, it can, and I have seen it happening over and over again.

Picture this: Setting personal financial goals is like customizing your very own designer handbag—tailored to your unique style. Start by asking yourself: What lights your financial fire? Start by envisioning what brings you joy and fulfilment—be it nurturing your passions, creating a legacy, or making a difference in the world.

Then, tailor your goals to reflect those values. Maybe it’s investing in ventures that ignite a passion or channelling your resources into an exciting business venture. Remember, you’re already on the financial runway, so let your goals be a shining reflection of your unique desires, and enjoy the journey of crafting a future that’s as extraordinary as you are! If you value giving back, weave philanthropy into your plan. Remember, it’s your financial runway, so strut confidently, make it personal, and let your goals truly reflect your dazzling self!

The little black dress

Let’s talk about a topic as timeless as a little black dress—financial literacy, money management, and long-term planning. Even with your fabulous fortunes, embracing these essentials like a well-curated wardrobe is crucial.

Think of financial literacy as your ultimate accessory, empowering you to make informed decisions and navigate the ever-changing financial landscape. Prudent money management? Consider it your style statement, ensuring your riches are preserved and multiplied.

And long-term planning? Well, that’s like having a timeless investment piece in your closet—it sets the foundation for a secure and fulfilling future. So, let’s strut confidently, stay financially savvy, and remember that controlling your financial destiny is the ultimate fashion statement, no matter how glamorous life may be.

Start with devouring books, blogs, and podcasts on personal finance. Book online workshops, or courses on budgeting, investing, and long-term financial planning. Apply your knowledge by actively managing finances, tracking expenses, and making informed decisions. Consider it your financial runway to a fabulous, financially empowered future.

Find a safe space to discuss fears and challenges that can alleviate the emotional burden. After all, a little wealth of wisdom never goes out of style!

True richness

Ultimately, being rich is far more than numbers—it’s about aligning financial goals with values and personal freedom.

However rich you really are, there are some important fundamentals: Embrace financial literacy, prudent money management, and long-term planning as your stylish accessories.

But here’s the secret: true wealth lies beyond money. It’s found in experiences, connections, and living life on your own dazzling terms. So, embrace a comprehensive perspective on being rich and adorn your journey with authenticity, purpose, and a sparkle that transcends any bank balance.

Speed read

Being rich is not just about the numbers but aligning financial goals with personal values and passions.

No matter how rich you are, equip yourself with the knowledge to make informed decisions and navigate the financial landscape.

You only stay rich by making prudent choices and adapting responsible spending habits. Picture this as your stylish accessory for wealth preservation.

Build a secure future by setting goals, investing wisely, and creating a solid financial foundation.

Look beyond your balance sheet to find joy in experiences, connections, and a life lived on your own terms.

SOURCES: BBC; MANAGER MAGAZIN; PR NEWSWIRE; CNN; BUSINESS INSIDER; NEUE ZÜRICHER ZEITUNG; FORBES