The Myth of Wealth

Wealth is hidden.

Wealth isn’t the fancy clothes, the luxury watch, or the big house. Those are just visible signs of spending. True wealth is what you don't see — the money that hasn't been spent, the financial asset quietly compounding in the background.

The paradox is that many people want wealth to signal to others that they should be liked and admired. They think wealth can send a strong signal to others that I made it. I am smart. I am rich. I have taste. I am important. Look at me!

But the real wealth is invisible. The highest form of wealth is the ability to wake up every morning and say, "I can do whatever I want today". The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.

Having control over one's life is one of the most powerful contributors to happiness. People like to feel like they are in control — in the driver's seat. When people are forced to do something, they feel disempowered. Rather than feeling like they made the choice, they feel like we made it for them. Autonomy — the sense that you’re in control — matters deeply.

This is money’s greatest intrinsic value: it gives you control over your time. Its true worth lies not in what it can buy, but in the options, flexibility, and security it provides. Once money is converted into stuff, it’s no longer wealth — it’s consumption.

The most fundamental way to build wealth is through saving — and saving is something everyone can do. Savings = Income - Ego. The less the ego, the less the desire, the less the spending, the more the saving. Many people believe they want luxury goods, but what they really want is respect and admiration from others. They think having expensive stuff will bring it. It almost never does, especially from the people you want to respect and admire you.

The desire to be respected and admired is one of human nature. But we need to be mindful of how we seek it. In fact, these traits — humility, kindness, empathy — not only bring admiration and respect, they also reduce ego. And with a lower ego comes greater ability to save. Saving builds wealth. And wealth, when used wisely, brings freedom, happiness, and peace of mind.