We are always thinking about wealth creation and one thing we believe is except you define what wealth is to you, you will have a hard time having it and an even harder time finding a path that leads to it.
Below, we show how successful people have defined wealth and how each definition is different and almost the same as well.
Morgan Housel said: “Wealth is the nice car not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined. Wealth is financial assets that haven’t yet been converted into stuff you see.” For Morgan Housel, wealth is in the things you denied yourself even if you had the money to buy them. Wealth is not measured by buying everything one wants, but in building up financial assets for yourself. Wealth to him then consists of “the money you have but didn’t spend and the more of that you have, the wealthier you become.”
To Naval Ravikant: “Wealth is assets that earn while you sleep. Wealth is the computer program that’s running at night, that’s serving other customers. Wealth is money in the bank that is being reinvested into other assets, and into other businesses.”
Naval summed his definition up by saying “wealth is much more businesses and assets that can earn while you sleep.” He is more biased towards things that compound, things that work for you while you sleep. Including your investment whose return is growing consistently. So the more of those that you store up for yourself, the wealthier you become.
Ravikant’s definition of wealth is one of the main reasons Rise exists, to help Nigerians build wealth by investing money that would otherwise lay dormant in savings account into dollar-denominated assets like Eurobonds, real estate, and stocks.
Eke Urum, Founder & CEO at Rise, believes “Wealth is ownership of a base of assets that allows you to live life on your terms because they generate enough income to take care of your basic needs.”
He also sides with Ravikant in the sense that he believes “wealth = passive income.” What Eke stresses is the freedom that comes with having a source of income that you don’t have to work for to earn or where you do the work once and earn on it “for life”. A source that’s also large enough to cover your living expenses.
What is your definition and when will you say you are wealthy?
What is interesting about the above definitions is that there is an element of freedom that accompanies them. Wealth gives you more freedom.
More importantly, however you choose to define wealth or whatever school of thought you subscribe to, Rise gets you there.
How Does Rise Come In The Picture?
The historical exchange rate of Dollar to Naira has seen a lot of people lose the value of their money over time. 5 years ago, N150k would buy $1,000. To buy the same $1,000 today, you need more than N450k.
Rise saw this unacceptable value erosion and chose to close the gap by linking users to global investment opportunities to protect the value of their money and give them competitive returns on their investments.
Rise products are designed to help you preserve and multiply your money. By converting your money to dollars, you secure your hard-earned funds against devaluation and excessive inflation. If you go a step further to choose any of Rise products (Eurobonds, Real Estate or Stock), you are in the position of multiplying your investment with interest over the years.
What Definition Do We Love?
We love all the definitions because they deal with different aspects of wealth building.
For Morgan, you need to be frugal to build wealth.
For Naval, you need to invest in things that can work while you sleep and things that compound.
For Eke, you need to build streams of income that allow you to earn enough passive income to sustain you. A goal that we all should embrace.
What is your own definition of wealth?