What Does Wealth Mean to Me?

Over the past few years, I’ve learned a lot about personal finance and financial independence. Early on, I confused being “wealthy” with being “rich.” Back then, my time felt less valuable than the money I earned, so I thought spending more money added “value” to my life.

But that definition has changed, and I’m sure it will keep evolving.

The True Value of My Time

As a parent, I’ve realized time is my most precious resource,so I think of it as currency.

Here’s a simple formula I use to estimate the real value of my time:

True Hourly Value of Time = Salary Hourly Rate + Personal Value of Time

Where:

  • Salary Hourly Rate is what you earn per hour at your job.
  • Personal Value of Time is what an hour is worth to you outside of work . Time with family, relaxation, hobbies, or anything else meaningful.

Sample Calculation

For example, if you earn $100/hour, you might value your personal time at half that—$50/hour.

Plugging these into the formula:

True Hourly Value of Time = $100 (salary) + $50 (personal value) = $150

So, every hour of your time could be worth $150. If a task (like assembling furniture) takes five hours, that’s $750 of your “true time value.” If you can pay someone $400 to do it, you’re “buying back” $350 worth of time.

Personally, I consider my own time to be 1–1.5x my salary.

How This Applies to My Life Now

These days, I value my time highly. I often pay for convenience,food delivery gives me half an hour to unwind. Outsourcing chores like deep cleaning lets me spend time with family or recharge.

It wasn’t always this way. In my 20s, my time felt less valuable—I had fewer responsibilities and more flexibility.

Of course, this equation is different for everyone. Your job, income, marital status, and life stage all play a role. But I’ve found this way of thinking incredibly helpful in making everyday decisions.

So, What Is Wealth?

Thinking this way has changed how I define wealth. The saying “Health is wealth” rings true. I’m grateful for decent health.But on most days, real wealth is simply having time.

That’s the core of the FIRE (Financial Independence, Retire Early) movement: the desire to reclaim your time, to do what you want, when you want. But you don’t have to wait for some magical “retirement day” ten years from now. You can start reclaiming little pockets of time every day.

I’m fortunate to have an income that supports my lifestyle, which allows me to evaluate expenses through the lens of time.

What Makes Me Feel Wealthy

  • Slow, unhurried mornings
  • Not stressing about grocery prices
  • Having two cars
  • Signing my kids up for any extracurriculars they want
  • Taking vacations