Wealth is a concept that’s relative and dependent on several factors. Having Rs 22 lakhs in equity and mutual funds, an emergency fund of Rs 2.4 lakhs, and exceeding Rs 5 lakh in PF certainly positions you well financially. However, the richness of your situation will vary greatly based on your life stage, current and future expense levels, and other commitments. It also hinges upon your perception of contentment and personal definitions of wealth.
In an early career stage, these accumulated amounts might signify substantial wealth, while for someone nearing retirement, the same amounts could be deemed insufficient, given their lifestyle and anticipated future expenses. Similarly, if you live frugally, these sums could provide you with a sense of richness, while for someone with high living expenses, the same amounts might seem inadequate.
Future commitments, such as children’s education or marriage, loans, or caring for elderly parents, could alter your financial landscape significantly. It’s crucial to factor in such anticipated expenses while evaluating your wealth.
Moreover, wealth is not solely a measure of your assets. Your attitude towards life, contentment, and personal fulfilment play a large role in defining your ‘richness’.
In essence, being rich is a state of mind. You can have all the money in the world and still not feel rich if you’re not content or if your spending surpasses your saving.
The key is to build good financial habits such as regular savings, wise investments, and controlled spending. These habits will contribute to increasing your wealth over time, but remember that the ultimate goal is to achieve financial independence and security, rather than just amassing wealth. Being ‘wealthy’ is more about the financial freedom and peace of mind you achieve, rather than the quantum of money you have. Your current investments indicate that you are on the right track. Continue focusing on financial discipline and aligning your investments with your life goals and needs, and you’ll find yourself ‘rich’ in the ways that truly matter.
