What Does It Really Mean to Be Wealthy? (And How to Actually Get There) To truly understand and achieve wealth, one must define what wealth means personally and set a SMART goal to work towards it.
“I just want to be wealthy.”
We hear it all the time. You’ve probably even said it yourself. But what does being wealthy actually mean?
(Cue awkward silence.)
Most people have no idea—they’re chasing a word, not a real goal.
Today, we’re going to fix that. Let’s define wealth in a way you can actually achieve, set a SMART goal around it, and start building a life full of freedom, not just paychecks.
First Things First: What Does “Wealthy” Even Mean?
Forget the yachts and Instagram influencers for a second.
Wealth isn’t about millions in the bank—it’s about freedom.
At its simplest, you are wealthy when your passive income covers your living expenses.
That’s it. Not complicated. Not reserved for billionaires.
Passive income is money that flows in while you’re living your life—not just grinding for a paycheck. Think rental properties, dividend stocks, royalties, small businesses—money that keeps working even when you’re not.
👉 Example:
If your bills total $4,000 per month, and your passive income (like rental earnings or dividends) brings in $4,000 or more, congratulations—you’re officially wealthy by our definition.
Halfway there? Celebrate that too.
If your investments cover $2,000 of your $4,000 expenses, you’re halfway to financial freedom. Progress is power.
(Curious about passive income? Here’s a great explainer from Investopedia.)
Why Defining Wealth Is Non-Negotiable
Here’s the thing: If you can’t define it, you can’t build it.
Wishing for “wealth” without a plan is like setting out on a road trip with no map, no gas, and no snacks. (Terrible idea.)
When you define wealth for yourself, you:
- Set a real destination
- Create milestones you can actually hit
- Stay motivated even when the journey gets tough
Otherwise, you’ll always feel like you’re chasing an invisible finish line.
How to Set a SMART Goal to Actually Become Wealthy
Okay, now that we know what wealth really means, it’s time to make it happen—with a SMART goal:
(Specific, Measurable, Achievable, Relevant, Time-bound.)
Here’s the formula:
- Specific:
Define your version of wealthy. (e.g., “Passive income covering $5,000 monthly expenses.”) - Measurable:
Track it. Know your gap. Know your progress. - Achievable:
Break it down into steps—start covering 25% of your expenses, then 50%, and so on. - Relevant:
Make sure it matches your life goals—freedom, passion projects, travel, family time. - Time-bound:
Set a timeline. (Example: “Full financial independence in 10 years.”)
Here’s What a SMART Wealth Goal Looks Like:
“I will generate $5,000 a month in passive income by 2035 through real estate investments, dividend stocks, and a small business.”
(Want more SMART goal tips? Check out this guide from FINRA’s Smart Investing section.)
Why Passive Income Is Your Secret Weapon
Let’s be real: if you’re trading hours for dollars forever, you’ll burn out before you build real wealth.
Passive income is what flips the script.
It buys you time, freedom, and options.
Top sources of passive income include:
- Rental property cash flow
- Dividends from investments (learn more about dividend investing here)
- Royalties from creative work
- Businesses that don’t need your daily babysitting
And yes, it’s totally doable even if you’re starting small.
(Psst: Thinking about rental properties? The IRS has specific rules about passive income you’ll want to understand.)
Building Wealth Isn’t About Retiring—It’s About Living
Maybe you love your job. Maybe you dream of starting a nonprofit, traveling the world, or spending your days painting, writing, or inventing.
Wealth isn’t about checking out of life. It’s about checking into the life you actually want.
When you’re wealthy, work becomes a choice—not a necessity.
You’re free to pursue the things that light you up, not just the things that pay the bills.
Quick Reality Check: Small Steps = Big Results
- You don’t need millions to be wealthy.
- You don’t need to quit your job tomorrow.
- You don’t have to invent the next iPhone.
You just need a plan, a definition, and some serious consistency.
Conclusion:
Saying you want to be wealthy is easy. Defining what wealth actually means to you? That’s the game-changer.
By setting a SMART goal based on passive income covering your living expenses, you’ll transform a vague wish into a real, measurable plan.
Freedom, flexibility, passion—the life you want is built one smart decision at a time.
Start today. Wealth is closer than you think. 💥
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