Being wealthy is not the same as being rich

It's far better to be wealthy than rich. Holistic wealth takes into account much more than just how much money you have.

For many people, “rich” and “wealthy” are seen as the same thing. These are, however, increasingly being thought of as different concepts.

Being rich implies having a high income. It also usually means having a high level of expenditure.

For this reason, there are really two problems with being rich. The first, is that it tends to focus only on the generation of financial wealth. It doesn’t consider other aspects of wellbeing.

The second, which stems from the first, is that someone who is continually focused on getting more money, is unlikely to ever reach a point of satisfaction. Since it is always possible to be richer, people who only want more money may sacrifice just about everything else in their lives in that pursuit.

Wealth, health, happiness

Being wealthy, on the other hand, is a much broader concept. It naturally includes financial security and building up assets, but it also encompasses abundance across various aspects of life, including having positive relationships, good health and a sense of purpose.

Put another way, wealthy people don’t just have money. They have the resources, mindset and freedom to live a fulfilling and meaningful life.

Research has shown how important this more balanced concept of wealth is. For example, a paper published in the American Journal of Lifestyle Medicine in 2021 emphasised the link between health and wealth:

“Studies indicate that people are happier when they are healthy, employed, or doing something productive; have strong social relationships; and are financially secure,” the paper noted. “Happiness has been associated with longevity. For example, very happy people have a 6% lower risk of death over a given follow-up time period than people who are pretty happy, and 14% lower risk of death than those who are not happy.”

An holistic approach

This has given rise to the idea of holistic wealth – the principle that we should expand our concept of wealth to include all dimensions of wellbeing. At its root, it is the appreciation that having money is not an end in itself, but that we should always be conscious of what having money enables us to do and achieve.

These dimensions include:

1. Financial wealth: This involves managing your finances responsibly, achieving financial security, and having the resources to meet your needs, pursue your goals, and create a sense of financial freedom.
2. Physical health: Taking care of your body through regular exercise, proper nutrition, sufficient rest, and preventive healthcare is a key part of overall wellbeing. This enables you to have energy for daily activities, and pursue your passions.
3. Mental and emotional wellbeing: Holistic wealth emphasises cultivating a positive mindset, managing stress effectively, developing emotional resilience, and nurturing healthy relationships. This dimension focuses on self-awareness, self-care, and maintaining a healthy balance in your emotional life.
4. Personal growth and development: Expanding your knowledge, acquiring new skills, and pursuing your passions and interests gives substance to your life. Nurturing your own personal growth contributes to a sense of fulfilment, self-actualisation, and the ability to adapt to life's challenges and changes.
5. Meaningful relationships: Strong connections provide emotional support, love, and a sense of belonging. As an article published by the Harvard Medical School in 2011 pointed out: “Dozens of studies have shown that people who have satisfying relationships with family, friends, and their community are happier, have fewer health problems, and live longer. Conversely, a relative lack of social ties is associated with depression and later-life cognitive decline, as well as with increased mortality.”
6. Work-life balance: Pursuing a fulfilling career or business while maintaining time for personal relationships, leisure activities, and self-care is critical. Striving for balance ensures that work is not the sole focus and allows for a more well-rounded and enjoyable life.
7. Contribution and purpose: Contributing to society, volunteering, or supporting causes adds a deeper meaning to life. It provides you with a sense of adding to something larger than yourself. Research published last year in the journal Preventative Medicine also found that “having a purpose lowers the risk of all causes of mortality, regardless of gender, race, or ethnicity”.

When all of these dimensions are combined, a much fuller concept of wealth emerges – one where money is only one aspect of your overall wellbeing, and where it is possible to be satisfied, and to have enough.

Because once money is only seen as an enabler of the life you want to lead, rather than an end in itself, it becomes a tool and not a master. And appreciating that is a key part of achieving genuine wellbeing.

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