Who doesn’t want to be a billionaire? Well, those who already are…no? And let’s admit it, it’s easy to feel a mix of intrigue and envy toward people who have already achieved great wealth. Some even feel a tinge of disgust, blaming a seemingly unjust world that allows filthy rich people to enjoy their extreme wealth, while others die of hunger and poverty. But if we’re being realistic here, there is quite a substantial number of high-net-worth individuals who have worked tremendously hard to get where they are today. Therefore, it’d be rather unfair to generalize and assume that those who are well off have simply been lucky enough to be born with a silver spoon or stumbled upon a generous inheritance.
An equally absurd assumption would be to think one has managed to strike gold and win real money by gambling online. Although not a far-fetched happening, because there are hundreds of exclusive casino bonuses for UK players, it’s one which is rather rare. The reality is, playing at an online casino comes with a fair deal of T&Cs and wagering requirements, so withdrawable money doesn’t come easy. Then, what are the steps that one should take toward accumulating a level of wealth? And how much money defines a person as wealthy? After all, does more money make you happier? Let’s explore.
What Can I Do To Achieve A Higher Net Worth?
It’s an aspiration not many manage to achieve in their lifetime, and while some individuals are fortunate enough to gain a considerable amount of wealth from inheritance, there is still a great deal who earn it through blood, sweat, tears, and years of hard work. So, for the latter, what does it take to reach such a status?
Kill Costly Debts
The average person in the UK has £4,010 of unsecured debt, according to the latest figures from June 2023. Besides preventing wealth accumulation, having any debt is stressful. But if you want to achieve a higher net worth, you need to start by prioritizing high-interest debts such as credit cards and personal loans. Develop a repayment plan and allocate extra funds towards paying off these debts as quickly as possible. Consider debt consolidation or refinancing options to lower interest rates and make the repayment process more manageable.
Take Charge Of Your Material Wealth Burden
If you’re on a journey to early financial independence, you should consider a minimalist approach to physical assets. Therefore, make sure that you only possess physical assets that add value to your life. It would also help you to evaluate your spending habits and identify areas where you can cut back. Set a budget that aligns with your financial goals and make sure you stick to it. By avoiding unnecessary expenses and prioritizing saving and investing, you can free up more resources to grow your net worth.
Explore Private Pension Options
If you want to retire early, you need to keep in mind that you’ll be giving up years of contribution to your private pension. And if you don’t adjust for this fact, your pension pot when you reach real retirement age may be insufficient. Therefore, it’s wise to invest aggressively and earlier in private pensions, so that you create a system for yourself to secure your financial future. The earlier you start investing, the more you can benefit from compound growth and ensure a more substantial net worth in the long run.
The Magic Number For A Person To Be Considered Rich – 2023 Modern Wealth Survey
According to Charles Schwab’s 2023 Modern Wealth Survey, Americans need at least $2.2 million in assets to be considered rich. Nonetheless, the same survey found that nearly half of the respondents felt wealthy, with an average net worth of $560,000. Furthermore, millennials and Gen-Z participants were more likely to feel rich compared to older generations.
Interestingly, this wealth survey revealed that for most people, wealth is about not having to stress about money or having more money than most people they know. Another intriguing finding is that a significant number of respondents valued experiences, relationships, and their careers as much as actual money. In fact, nearly 70% of the survey participants stated that a healthy and flexible work-life balance holds more importance in driving wealth than simply making more money. In view of this, the report identified well-being as a crucial measure of prosperity.
Does Having More Money Make You Happier?
Numerous studies have found that having more money can indeed make you happier, and it’s not difficult to see why. Money can help us access the things we need, open doors to new opportunities, and give us a sense of security. Some studies even show a connection between higher income and greater life satisfaction.
On the flip side, it’s worth considering the Easterlin Paradox which suggests that once we have our basic needs covered, earning more money may not have a significant impact on our overall happiness. In line with the aforementioned wealth survey, other factors like relationships, health, and finding personal fulfillment have a huge role to play when it comes to overall wealth.
So, the next time you’re thinking about whether you’re wealthy enough, ask yourself: could it be that my overall wealth cannot be fully measured in pounds and pence?