Wealthy vs. Financially Healthy

In 1902 the New York Evening World newspaper used the phrase "feel like a million bucks." This was a brand new idiom for expressing a feeling of extraordinary well-being.¹

At the time, surgeons and bankers could expect to make about $1,600 per year. You could buy a new Ford for $750. ² And you could build a sizeable house for around $3,000.³ You can see why, at the beginning of the twentieth century, being a millionaire meant having more wealth than you knew what to do with.

 

Today, a million dollars doesn't go nearly as far as it did when people started using the above-referenced phrase. In many metro areas $1 million will buy you a modest house. Still, according to a recent poll, 65% of people today said that if they had a million dollars in the bank, they would feel wealthy.⁴

Not surprisingly, when the same researchers asked actual millionaires how much money they would need to feel wealthy, the amount was substantially more. Of those responding, more than half said they would need at least $3 million to feel wealthy. And 40% said that they would require $5 million or more. All told, only 33% of millionaires said that they felt wealthy.

However, having a seven-figure bank balance is not the only or even best way to gain peace of mind about your money. A better way is to be financially healthy. This means having full control of your money today and consistently working toward your financial well-being for the future. This approach requires discipline, emotional resilience, and willingness to follow professional advice.

Unfortunately, in popular culture, being wealthy means amassing so much money a person could be out of control with their spending without facing any consequences. This is how lottery tickets are sold. 

But on the other hand, being financially healthy simply means having control of your spending so that your money is working to make possible the things that are most important to you. This is a sense of financial well-being you can enjoy regardless of your income.

We are happy to talk with you about ways to increase your financial health as you continue to work along the path set out in your unique financial plan.

 

 

1. http://go.pardot.com/e/91522/feel-like-a-million-bucks-/969k3h/2640777467/h/Ym-SyQ-_WSDBW_v5VP3GFFVXlSjMXwHcGLw0kcRVI3c
2. http://go.pardot.com/e/91522/-id-uc1-31175027072126-seq-368/969k3l/2640777467/h/Ym-SyQ-_WSDBW_v5VP3GFFVXlSjMXwHcGLw0kcRVI3c
3. http://go.pardot.com/e/91522/pricesandwages-1900-1909/969k3p/2640777467/h/Ym-SyQ-_WSDBW_v5VP3GFFVXlSjMXwHcGLw0kcRVI3c
4. http://go.pardot.com/e/91522/lves-wealthy-report-finds-html/969k3s/2640777467/h/Ym-SyQ-_WSDBW_v5VP3GFFVXlSjMXwHcGLw0kcRVI3c