wealth is not a material gain, but a state of mind

The idea of wealth, and building wealth, has come up a lot lately. I’ve talked to friends about building financial portfolios, read blogs about various ways to increase wealth, and thought a bit about my immediate and long-term goals.

Part of what I’ve been mulling over is what exactly we mean when we use terms like “wealth” and “wealthy”. For me, it’s not just about my net worth. Or rather, my “net worth” is not just about dollars. It’s also about being in line with my intentions. Sure, I could make a lot of money if I invested in Chinese petrochemical companies, but do I really want that on my conscience? Is that really what wealth is all about?

Not for me. I have one retirement account heavily invested in “social choice” funds, or what are also considered “socially conscious” funds. Historically, these funds don’t tend to perform as well as traditional funds (though in an ironic twist of fate, they are currently outperforming everything else I have). But while I might end up with 15-20% less than I might have earned, at least I can feel better knowing that I’m not getting ahead by stepping on the less fortunate.

Of course, I will clearly disclose, I do have my fair share of traditional funds, chosen for their expected gains. In fact, my other retirement account is completely invested in your typical tech fund options. I also own shares in a number of companies with whom I might not agree. Some amount of diversification is necessary and smart, unfortunately. But there is something to be said for wielding a small amount of power as a shareholder and a consumer, and my letter-writing skills have been duly sharpened.

So in my mind, wealth is not just about my financial assets, but it’s also about my quality of life… and that of those in my global community. It’s also about my state of mind. A man with little means can be wealthy if he believes himself to be - if he’s happy with his lot in life instead of being resentful of those things he doesn’t have. There will always be things out of reach for us, but there are also many things within reach that we often forget about.

But wealth is also about opportunity. A man who has cut himself off from growth is not wealthy. But a man who can dream of other possibilities has infinite room to expand and explore. He can enrich his life and the lives of those around him. Wealth is not just in the current, it’s also in the potential.

And I also think that building wealth requires a little risk and some unconventionality. I sometimes think that my life has been a series of unconventional decisions. In retrospect, some have been quite ridiculous, but in the end, I’m at the place where I’m happy (I’m also alive and I have full use of all my faculties). Can we really ask for more?