High-net-worth individuals of all three generations predominately regard wealth as comfort and happiness, according to Boston Private’s 2018 “The Why of Wealth” report, which surveyed respondents with net investable properties in between $1 million and $20 million.
Of the respondents, 63% relate wealth with a peace of mind, while 54% specify it as joy (several responses were allowed). “In essence, individuals pursue monetary wealth to attain emotional well being,” the report states, including that this takes priority over material objectives.
Even financial capital, which wasn’t far behind with 51% of the vote amongst all generations, exemplifies how extremely rich people worth non-material items. They are pleased feeling in one’s bones the cost savings and financial investments are there, instead of using the money to purchase things, the study discovered.
While these are the leading definitions of wealth for all generations, each generation does prioritize them a bit in a different way.
Peace of mind is considerably more crucial to older generations, while more millennials see wealth as a “gateway to happiness,” inning accordance with the report. Baby boomers are the only generation to position more value on wealth as financial capital than wealth as happiness.
“While individuals mainly pursue wealth to achieve favorable feelings and a healthy mindset, a person’s life phase and professional status assistance identify the specific kind of feeling they long for,” the report states. Those who are older look at wealth from a security viewpoint, associating it with peace, tranquility, and satisfaction. Younger individuals want a “more unclear principle of happiness,” associating wealth with success and satisfaction at work and outside of work.
This may likewise explain why millennials have one striking distinction when it pertains to their understanding of wealth– 46% define it as power and impact, compared with the 26% of Gen X and 12% of infant boomers who see it through the exact same lens. The report calls this “external/reputational wealth,” a departure from “inner wellness,” but yet another example of emotional wealth.
But this distinction isn’t simply highlighted among generations– it’s also evident when comparing genders.
Men seek kinds of external wealth, like success, power, and impact
The study found that 28% of males valued power and impact, compared to 20% of females. Males also valued other types of external/reputational wealth, such as success in life, abundance, and tradition, more so than women, who found more significance in inner psychological wealth, the study discovered.
“This indicated that men are more preoccupied with the understanding of wealth and how it can elevate their social standing and enhance their sphere of impact,” the report says.
It’s fascinating to note that more individuals than not said their definition of wealth has actually evolved gradually, recommending that ideas of wealth could alter as one ages, supporting the idea that life stage elements into how a person worths wealth.
Perhaps with time, millennials will put more focus on viewing wealth as assurance and less focus on seeing it as a method of power and impact.