George Giguere, who teaches a course on entrepreneurship at Brown University, recently asked this question to a group of students. Not surprisingly, wealth meant different things to everyone. However, all wanted to be philanthropic at some point in their life and did not believe money would buy them happiness.
How much money would it take to make you wealthy?
While responses ranged from $1 to $10 million, the students were challenged to think further. Giguere, a successful entrepreneur, has seen more people make it and then lose it, than make it and keep it. He teaches students the importance of keeping their word in business and treating people right. “In creating wealth, you develop relationships along the way. If you don't treat these relationships well, there is a probability that there is going to be a time to cash in on those relationships again and it is not going to be there for you when you need it,” says Giguere.
“You create a history in your life, and if you don't treat people with respect, you will pay the price for it one day.”
Serious factors in determining whether someone is wealthy or not include how much he or she wants to spend, how the money will be used, and what needs are not being met. Real estate tycoon Donald Trump, who may seem to have unlimited needs, requires a lot of money to be wealthy by his own terms. Someone else with limited needs may be wealthy in his own right.
Giguere notes the origin of wealth is important to mindset. People who win the lottery but have no concept of money tend to lose it right away. People who inherit money through a trust or earn it themselves but feel they were lucky tend to be more cautious in spending it. People who deal best with wealth are those who gain it with confidence, did it themselves and know they can recreate themselves if things turn sour.
The words “success” and “wealth” are often used interchangeably. “It takes persistence and patience to achieve success. One does not work with the other," says Giguere. It is important to set goals even at a young age. Doing so will help make you successful within your own definition.
Notes Mark Eisenson, author of Invest in Yourself: Six Secrets to a Rich Life,
"Once we become adults, we often lose track of life's simple pleasures and of our own personal goals. We take a wrong turn or two, and spend a good part of our lives doing things we'd rather not – while not doing many things we'd enjoy. Although we may obsess about how unhappy we are, we don't focus clearly on what we can do to change the situation, how we can invest our time and energy, and, yes, our money to consciously create the life we want.”
So, what does wealth mean to you?