How do you measure wealth?

[Joy]

And I'm talking about financial/material wealth here.

[Parthon]

With a stick!

But seriously, for material wealth, it is the price it would be worth to the market if you were to sell it.

In moneterised countries the currency is the standard unit of measurement because it's just so dang easy. It might not accurately represent the intrinsic value of something, but it does match what society will pay for it.

The tricky part that noone tells you is that nothing worth real value can be bought.

[cdn2wheeler]

Originally Posted by Joy

And I'm talking about financial/material wealth here.

Not sure what you mean. If you're referring to personal or corporate wealth, it's simply a process of subtracting one's credits from one's debits and the remainder - either positive or negative - reflects wealth, measured in currency.

Is that what you mean?

[mellom]

I had this conversation with my uncle recently:

Uncle: "Do you know how to tell if you're rich?"
Me: "No, how?"
Uncle: "You can pay your bills."

Cool, I guess I'm rich

[Lucas]

I measure my wealth in the free time I have. The more free time I am able to enjoy because of passive income, the richer I am. Completely dissociating my time and income is my personal goal.

[Dwane J.]

I'm oldschool, I use Quicken Home and business. Once my passive cash flows equals my cash outflows, success will have been achieved

[Jennihul]

How many zeros at the end of my balance after all the bills are paid.

Jennifer

[mellom]

Originally Posted by Dwane J.

I'm oldschool, I use Quicken Home and business. Once my passive cash flows equals my cash outflows, success will have been achieved

Quicken rocks! My friends think I work for Intuit because I'm always pimping their products.

[Sam988]

Originally Posted by Joy

And I'm talking about financial/material wealth here.

I'm not sure if i understood your question the way you meant it, but here goes an answer.


This is very subjective. Some people may say that all they need is a nice monthly salary to consider themselves wealthy, some may say that they need some millions, others may need some dozens of millions, while others will say that "there's a millionaire at every corner nowadays; being a millionaire is no more fun, what i really want is to be a billionaire".



And if you're simply talking about how to measure your wealth, add up all your credits/possessions, and subtract from it all your debts. Couldn't be more simple.

[4Mind4Life]

Total Assets (cash + what you could sell all your possessions for) minus - Total Expenses = Your Net Worth

[Angela]

I measure it: if I have enough and some to spare, then I'm wealthy.

After that, it's like counting rabbits.

[Joy]

Originally Posted by Angela

After that, it's like counting rabbits.

LOL


As for me, I measure wealth in time... like a few of the posters here, I consider "wealthy" to mean that you have enough passive income coming in each month to pay for your lifestyle. I'll add that the lifestyle to which I refer, in my case, involves a lot of traveling, eating out, and paying others to handle things like chores, errands, bookkeeping/accounting, etc.

[seeker5]

Originally Posted by Joy

And I'm talking about financial/material wealth here.

Back in July of this year, I followed the advice from an audio program by a millionaire about measuring my net worth at the end of the month. He says if you want to be a millionaire, you got to be able to calculate where you stand. So, I calculate in one group all the money I have in my bank accounts, investments, and cash on the day I do the calculation. I called this "Assets". In another group, I calculated all the money I owe to people, institution, and the checks I've written but have not cleared yet on that day. I call this "Liabilities". Then I substract Assets from Liabilities and I have my net worth listed.

I do this at the end of each month on a spreadsheet, and I compare these snapshots month to month. I love doing this and I actually look forward to it.

So, that's I measure my financial wealth