The Money Game

In the past few days, I’ve had a chance to sit down with several individuals all in need of some financial advice.  Most of them were middle to upper level managers with very solid companies who, for one reason or another, chose to eliminate the positions my clients were in.

The eliminations (or layoffs, or riftings, or whatever the catch-words are these days) have put several people in a very difficult predicament.  The underlying challenge all of them face is the fact that they’ve grown accustomed to a certain lifestyle and it requires the income they make on a monthly basis.  When the income stops, the lifestyle continues until they realize they are no longer able to afford it.

Here is the best definition of wealth I’ve ever heard:  Wealth is determined by how long you can live your current lifestyle if your present income streams stopped immediately.  Now the obvious difference between someone who’s rich and someone who’s wealthy is…

A rich person can afford a luxurious lifestyle, but if the income stops, they’re hosed.  (See recent stories of Lindsay Lohan, and her borrowing of spending cash from friends…)

A wealthy person can afford the lifestyle they’ve always enjoyed, and if their working income stops, they can continue living the lifestyle indefinitely.

My own personal definition of wealth also includes good health, a loving family, and the ability to enjoy life’s little imperfections.

To your prosperity and increased wealth…