Learn to feel wealthy - How are you?

So I learn from some readings about the difference of being rich and wealthy. The latter is focus on what’s enough to be content. If an asset become a burden, better to sell it and use it to achieve other priorities that make you content. Being rich usually associated with materialistic dream and net worth.

There’s an article (https://www.linkedin.com/pulse/wealth-chapter-2-types-part-1-financial-priyank-kothari) that mention to be a wealthy, one must have values, clear vision, and discipline to achieve it. I think clear values, vision, and discipline are must for everything in a life. So, yeah!

The article breaks down several level of wealth, which not entirely rely on money and finance. James Clear mentioned about 4 type of wealth: financial wealth (money), social wealth (status), time wealth (freedom), and physical wealth (health).

There are some articles that provide checklist to measure our level of wealth status; dependent or not. Let’s check!

Constant worry about money and meeting day-to-day expenses > no
Lack of financial stability and uncertainty about the future > yes, future is uncertain
Feeling trapped > no
No assets > have

Tips to progress:

Create a budget and track your expenses to gain control over your finances > yes
Focus on increasing your income through additional work or seeking higher-paying opportunities > no, need much time and energy
Don’t get in anymore debt > agree
Learn high value skills > trying
Develop financial literacy by reading books, watching YouTube finance channels, attending seminars, or taking online courses > yes

Being wealthy is being self-sufficient. It is when you can cover basic expenses without relying on others. Often we are bouncing back and forth from dependency to self-sufficient level before become more stable. Raise your hand!

So some people offer tips to progress your wealth status. Here we go!

Prioritize saving and create a strategy to build your savings account > If you find it hard to save money. First step, get higher paying jobs or take a risk!
Start building an emergency fund to provide a safety net during financial emergencies > If your basic needs is not yet fulfilled, forget emergency fund because your life is still in emergency.
Reduce unnecessary expenses and focus on living within your means > be real with yourself.
Explore opportunities to increase your income through side hustles or career advancement > prepare yourself when the opportunities present.

It is important to be anchored, meaning to have

Solid emergency fund (3-6 months of expenses) and savings.
Feeling confident in your health, time, and energy.
No debts or debts which in control and for less than 6 months period.
Some discretionary spending.
Have more flexibility in making career choices and pursuing passions.
Making progress towards long-term financial goals, such as homeownership or retirement.