Financial Experts: What Does ‘Rich’ Really Mean?
Written by
Caitlyn Moorhead
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Jenna Klaverweiden
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Rich is often an ambition but rarely a game plan. What does it mean to be rich or wealthy or to have money? What you have in your bank account, and how much you can do with it, varies from person to person both in amount and in perception.
In a world where wealth and success are often discussed, the concept of being rich remains surprisingly elusive. Financial experts have different views as to what it means to be rich, but it remains subjective and can vary depending on cultural contexts and personal goals.
While money is certainly central to the conversation, being considered rich involves a deeper, multifaceted understanding of wealth, so it’s always good to have some money experts weigh in.
Dave Ramsey: Being Rich vs. Being Wealthy
Many meanings come with describing your cumulative funds and assets. If your feeling rich is just referring to cash and creature comforts, that’s one thing, but if it’s a whole personality trait, that’s another. Dave Ramsey’s platform, Ramsey Solutions, which is a financial counseling and education site, said this:
Rich people spend a lot of money, whether they have it or not … On the other hand, being wealthy is when you have your finances in order and are making wise money decisions.
Equating monetary assets, investments, savings or cash flow with having more than a six-figure income may be a deficit mindset. However, in many cases, wealth transcends net worth. Being smart about how you acquire your riches leads to more comfort in how you feel financially. Financial well-being, often tied to being rich, encompasses the ability to make choices without financial anxiety.
Suze Orman: Financial Freedom vs. High Income
One common misconception is that a high income automatically translates to wealth. Financial expert Suze Orman has pointed out that income does not equate to being rich, especially if you have high expenses and minimal savings.
Orman also puts heavy emphasis on the fact that being financially independent today doesn’t necessarily cover tomorrow:
The goal is to keep your money safe so that when you go to use it, it will be there. Money you won’t need to use for at least seven years is money for investing. The goal here is to have your account grow over time to help you finance a distant goal, such as building a retirement fund.
Financial independence — the point at which your investments and assets generate enough income to sustain your lifestyle — is a more accurate marker of wealth than a large salary. This freedom allows individuals to make decisions without feeling tied down by debt or financial obligations. It’s about having enough assets to support your desired lifestyle, whether that’s retiring early, traveling the world or pursuing a passion project.
Rachel Cruze: What Does Your Quality of Life Really Cost?
Time is an overlooked factor in defining wealth. Many financial experts emphasize that being time-rich — having the freedom to decide how you spend your hours — is often more valuable than a large paycheck.
Time wealth means the ability to spend time with loved ones, travel or pursue personal interests without the pressure of financial concerns, which only enhances your quality of life. For some, this is a more significant indicator of being rich than a high net worth. Financial expert Rachel Cruze said this:
Money can buy fun. But money will not buy you true, true happiness, because your stuff can not own you.
Ramit Sethi: Lifestyle Choices, Emotional Wealth and Fulfillment
Where you live also plays a crucial role in how wealth is perceived. For example, a person earning $100,000 in a low-cost area may feel significantly wealthier than someone making $200,000 in an expensive city like New York or San Francisco.
Financial expert Ramit Sethi, author of “I Will Teach You To Be Rich,” argued that cost of living and lifestyle choices affect quality of life and, ultimately, one’s sense of wealth. When it comes to being or feeling rich, he said this:
We know that being rich isn’t just about money. We know that conscious spending can be fun (especially when it’s automated). Anyone can be rich — it’s just a question of what rich means to you. A rich life is about more than money. It starts by managing your own. And it continues by helping others become rich.
Being rich is not solely a financial concept but also an emotional one. Many experts suggest that wealth includes having a sense of purpose, fulfillment and happiness. Emotional wealth might include good health, strong relationships, and a fulfilling career or hobby. The pursuit of happiness, self-actualization and peace of mind are increasingly being considered parts of the definition of being rich.
Why the Rich Stay Rich
The bottom line is that the concept of rich remains a case-by-case study. Simply put, richness is subjective even when you ask money experts. The reason high earners or generationally wealthy people tend to maintain their classic standard of rich often is they don’t fear money as lower-income people do. This mindset increases their risk tolerance when it comes to things like investing in stocks or real estate.
From that, it’s easy to derive that it’s easier not to worry about money when you have it. However, if you want to step outside the middle class, you may have to shake off your old way of thinking and start focusing on growing your assets with a profit mindset and not a payment one.
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