What is Your Level of Wealth?

How wealthy do consider yourself? Do you worry about certain debts or are you able to go out to dinner at any restaurant and not worry about the check? How much do you have under the technical definition of wealth (net worth minus your debts)? Knowing where you stand regarding your wealth–or where you want to be–can be important when planning for retirement. If you currently have a high level of wealth–for example, you have no limits on where you stay or go on vacation–then you will probably want to keep such levels going in retirement and that may require Continue reading What is Your Level of Wealth?

Understanding Wealth Now So You Can Enjoy Retirement Later

Just because you earn a high income does not mean you are wealthy. Yes, making lots of money makes it much easier to become wealthy, it doesn’t necessarily equate to wealth. Wealth is really more closely equated to your net worth, or the difference between what you own and what you owe. You can calculate your wealth by adding together all of the physical and intangible assets you own and then subtracting all your debts. Why is this important? Well, because it helps with understanding how to save and live within your means. It’s easy to be rich, but it’s Continue reading Understanding Wealth Now So You Can Enjoy Retirement Later

Income Does Not Equal Wealth

Do you know the difference between income and wealth? Income is the amount of money you earn on a consistent basis (i.e. yearly). Wealth is equivalent to net worth, which is the value of all income that your assets generate, usually taking into account any debts as well. Thus, you can have wealth without high income and you can have high income without necessarily having wealth. While having a high income does make it easier for one to accumulate wealth, it does not mean that one is automatically wealthy. Understanding the difference between income and wealth is important when planning Continue reading Income Does Not Equal Wealth

Do You Have Good Saving Habits?

There are many ways to amass wealth. Sometimes it comes in a huge windfall (i.e. an inheritance or rapid growth of a company), but it can also occur over a long period of time. The latter way is probably most common as it’s the way most retirement plans work and how many Americans store enough away for a comfortable retirement. What’s the best way to save? The easiest way to save is by spending less than you earn and saving the difference. This can only be done though, if you have good saving habits and the self-control not spend on Continue reading Do You Have Good Saving Habits?

What is Wealth?

How do you define “wealth”? Can you measure it with money or is it something more? How you define wealth will influence your retirement and financial goals. If you seek more than just monetary wealth, your retirement and financial goals may go beyond just saving a certain amount of money. How you define wealth will also determine what exactly you do with your money. Having your own personal definition of “wealth” is important when planning both financially and for the future.