WEALTH

“So what is Wealth really”?

"Wealth”, simply put, is that which satisfies our needs and wants of utility as human beings. "Wealth" can also be described as an abundance of items of economic value, usually in the form of money, real estate and personal property.
An individual who is considered wealthy, affluent, or rich is someone who has accumulated substantial wealth relative to others in their society.

Wealth can be categorized into three principal categories personal property, or monetary savings, and the capital wealth of income producing assets.

Wealth provides a type of safety net of protection against an unforeseen decline in one’s living standard in the event of job loss.
The opposite of wealth is destitution. The opposite of richness is poverty.

A personal net worth of AU$10,000 in most parts of the Australia would certainly not place a person among the wealthiest citizens of that locale. However, such an amount would constitute an extraordinary amount of wealth in impoverished developing countries.

Those with wealth are trained and conditioned, technically and philosophically, to handle the wealth that they will control and how to earn more. Wealth and being a member of the upper class requires significant prior preparation and familiarisation. They use the power and freedom that comes with wealth to leverage opportunities.

Would it then be prudent to conclude, this allows them more flexibility in their lives and as a result they have fewer worries?

The accumulation of wealth fosters a growth of power, which in turn creates privileges conducive to more wealth.
There is a distinct difference in views about wealth among the classes. Where the upper class beliefs focus on wealth, the middle class places a greater emphasis on income. Typically the middle class consists of individuals that were raised with families that typically owned their own home, planned ahead and stressed the importance of education and achievement. They earn a significant amount of income and also have significant amounts of consumption.

However there is very limited savings or investments, besides retirement pensions and homeownership. This form of structured wealth accumulation is necessary. Without this structure, accumulation would likely not occur in ordinary circumstances.

The working class has fewer options for advancement and wealth accumulation than the upper and middle classes due to limited income, unstable employment and an insignificant retirement funds. Consequently, there is a limited financial cushion available in times of hardship.

The middle class views wealth as something for tougher times ahead and more of a cushion against such unforseen circumstances arising.

However would sustainable wealth be a measure for a Wealthy Piece of Mind? Could this type of wealth be what sustains you when you are not working or is your net worth, not income, important when you retire or are unable to work.

The key question is how long would a certain wealth last?