By: Mike Earl, CFP®, CPWA®
What is Wealth? Appreciable assets or conspicuous consumption?
From The Millionaire Next Door:
“Ask the average American to define the term wealthy. Wealthy to them refers to people who have an abundance of material possessions.
We define wealthy differently. We do not define wealthy, affluent, or rich in terms of material possessions. Many people who display a high-consumption lifestyle have little or no investments, appreciable assets, income-producing assets, or common stocks.. Conversely, those people whom we define as being wealthy get much more pleasure from owning substantial amounts of appreciable assets than from displaying a high-consumption lifestyle” (pp. 11-12).