The Different Levels of Wealth Categorized and Explained

It is probably not a surprise to anyone that being “rich” is in the eye of the beholder.  It is a very individual definition based on one’s own needs, wants, and distance in between those elements.

It can be useful to have a framework, or a lens, through which to view different levels of accumulation and wealth. This can make it much easier to relate to other situations as well as align your financial resources with your higher-level goals.

Here we present the  five levels of wealth as a framework, I’ll explain my version of the different levels of wealth adapted from Butterfield.

Five Levels of Wealth

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Nothing in life matters if you don’t have these basic human needs. At this point, it’s all about survival. There are plenty of problem to which our society hasn’t found a solution.

1. I’m not stressed about having a roof over my head or a basic meal.

 According to the Association of American Medical Colleges (AAMC), as of 2017, the average medical student averaged $179,000 in debt. No doubt it’s higher today.

2. I’m not stressed about debt.

That’s a mountain of debt to work your way out of when starting. Yes, it helps to refinance their student loans, and as the White Coat Investor always preaches, most should focus on getting rid of that debt within the first 5 years.

I don’t think this means you’re obligated to stay at the nicest hotels and always fly first class. It’s just that you can do whatever you want, depending on the experience you’re looking for. All of this comes down to choice.

3. I don’t care what a vacation costs.

If we’re traveling with children, we’re looking for a hotel with the best amenities for children. If you’re traveling to Europe, you may want to eat at places that provide an authentic experience. 

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