Question

What exactly do we mean by the term WEALTH? Why is it important?

Answer 1

In financial terms,wealth basically means the value of all resources put together that is owned by a person or a society in general. However, in a broad sense it can be said that wealth is a state of mind, if an individual thinks he is wealthy, he is and if he think he is not, he is not. It is all about contentment. If someone is happy will 10,000 dollars in his bank out and he is content with it, he can call himself wealthy, while if someone is not happy even with a billion dollars, he might be wealthy in economic terms but not in real terms, therefore, wealth is purely a theoretical concept and its definition will certain change from person to person.

Wealth is more than just money in bank accounts or having a lavishing lifestyle, it is about having true and deeper relationships with your loved ones, having a happier and prosper family, good education and experiences etc. Therefore money is a thing in life but it is not everything in life.

As discussed, the definition of wealth may change from person to person, but talking strictly in finance terms, higher wealth can be a key for happiness in a world which is thriving heavily on capitalism, in easier words if a world works on fuel of capital, it is better to have lot of fuel to let this world work for you and this fuel is capital or wealth. Therefore, wealth is important to fulfill dreams and desires along with all the necessities like food, shelter etc. in a materialistic world like we r living in today.