So I moved back to my rural hometown after long years of building a career in the capital city, met up some friends I haven't seen for ages. Hanged out, got to my story and their first question was where did I buy my house. I told them I didn't, I'm in a rental property like I've always been. It was strange at first but then I realized I was their idol, the "rich guy who made it". Then got on to other topics. "So what car do you have?" I told em, I dont have a car. "Fuck it bro, at least did you travel the world?" - Not yet. With 3 questions and 3 answers, I made their whole world view collapse. "Are you even wealthy bro?" Yessiriam. I consider myself wealthy. What makes a man wealthy? Having options. If I'd like, I could buy the house, buy the car or travel the world. I didn't because it's not financially the right decision, at least it wasn't at that moment.
There was a question a few days ago here, someone coined what could be the biggest problem with economies. This is one of them, for sure. People can't differentiate assets and liabilities. They think they own the house, they claim they own the car, and in the meantime they're in utter debt. People strive to take on liabilities instead of building wealth which consists of assets (favorably hard or income-generating assets). They discount their time, become corporate slaves just to keep up with the illusion of their lifestyles they ought to show to the outside world.
And I see this everywhere. The four of us in the room all came from the same school. Same age. Same opportunities. Three wheeling in heavy debt, trynna keep it up with side hustles. One with a positive balance who never needs to be a corporate slave again.
What is your definition of success and wealth? cause from the topic, i really don't get how you're wealthy yet not successful. Personally, i think you're successful but not wealthy instead. You talked about how people don't understand the difference between assets and liabilities, and i get your pov of how a house and a car aren't assets but liabilities, but don't you think renting a house and not having a car is a liability ? i think a thing can be an asset or a liability depending on how you see it and how you use it. Having a house saves you from having to pay rent monthly or annually. The difference between the money for renting and for owning a house may seem small now until its accumulated over times. In 10- 15 years, the aggregate of your rent might be more than enough to get a house. that house, you can stay there for as long and you want and even rent it out when you're tired of it. Same goes for a car. Not having one might might make you loose opportunities and time.
Maybe to you having these things may be liabilities, but to your friends they are assets. And if you don't have any asset my friend, then you're not considered wealthy, cause the measure for wealth isn't how much cash you have, its how much assets and investments you made.