You might think you’re rich. Perhaps you drive a BMW, Mercedes or Rolls. You might have a home in Palm Beach, New York and Paris.
But are you truly rich?
Wes Moss, author of You Can Retire Sooner than You Think, suggests that you shed the misconceptions that everyone has drummed into your head about wealth.
Wealth isn’t defined by income. Nor is it defined by your net worth. Neither is it, as your financial adviser would have you believe, based on your “investable assets.”
To make sure you’re as wealthy as you think, Moss suggests that you determine your “rich ratio.” Your rich ratio simply is the amount of money you have in relation to the money you need to realize your dreams.