Are You Wealthy?

In the 2019 Netflix movie, Jurgen Mossack, played by Gary Oldman, says ‘first you must ask yourself, are you wealthy?’ It is that question that we will try to answer today. Discussing wealth and personal finances is often considered taboo in many cultures and is often seen as impolite or rude. This is because talking about money can be seen as gauche, brash, or even aggressive, and can evoke strong emotions such as envy, embarrassment, or insecurity. And yet, most of us are fascinated by wealth.

Our society is infatuated with consumption, largely driven by the constant bombardment of advertisements we receive. In addition, the prevalence of social media has made it easier than ever to feel jealous of others. These commands to further consume are, in my opinion, the reasons why more people are not wealthy. But to avoid sounding like the person who says, ‘if you stopped getting your coffee from Starbucks in the morning, you could own a house,’ let’s define what I mean by wealthy.

To me, someone is wealthy when their income far surpasses their expenses. Wealth means you are not only earning enough to cover your expenses but have enough left over to save a large portion as well. This means that wealth is a relative term. You can make twenty thousand dollars a year, but if your expenses are only five thousand dollars, you are wealthy. In contrast, an investment banker can make half a million a year, but after factoring in mortgage payments, car payments, child support, and normal expenses, they may be living paycheck to paycheck.

By tempering one’s expenses and living below their means, they can accumulate wealth regardless of their income level. Financial literacy plays a crucial role in this process. It involves understanding how money works, including concepts like budgeting, investing, and managing debt. Unfortunately, due to the taboo surrounding money, financial literacy is often neglected or overlooked. This lack of knowledge can have detrimental effects on individuals’ financial well-being and contribute to widening wealth gaps.

In some societies, there is a strong cultural stigma against openly discussing money, especially when it comes to income or wealth. This stems from the belief that discussing money is in bad taste and that it’s inappropriate to flaunt one’s financial success or inquire about others’ finances. This stigma can be particularly pronounced in cultures that value modesty, humility, and privacy, where there is an unwritten rule that financial matters are private and should not be discussed in public.

However, avoiding discussions about wealth and personal finances can also have negative consequences, such as limiting financial literacy and perpetuating inequalities. It can prevent people from seeking financial advice or learning from others’ experiences. Opening up conversations about money, wealth, and financial literacy can empower individuals to make informed decisions, set realistic goals, and work towards improving their financial situations.

In conclusion, wealth is not solely determined by income but by the ability to live below one’s means and save a significant portion of earnings. Financial literacy plays a vital role in achieving and maintaining wealth. While there may be cultural stigmas surrounding money discussions, breaking free from these taboos can contribute to greater financial knowledge, empowerment, and ultimately, a more financially secure future for individuals and society as a whole.