See also exclusive clubs: disqualified despite comfortable Brbr+FullerWealth , defining the notion of “exclusive clubs”
See also sense of rich/inferior is mostly driven by peer comparison, which pitted FOMO vs livelihood. In this blogpost, we compare two definitions of wealth:
- ExclusiveClub wealth — (a.k.a. net worth bracket) based on comparing with the Joneses. A club of strongmen of comparable strength to lift the same heavy weights. The standard heavy weights like “nice” homes, branded colleges, “quality” vehicles, enrichments, personal trainers, first-class vacations
- Fuller wealth — based on modest or efficient or conserver burn rate.
- “Instead of heavy weights, try lifting your own body weight”. A lightweight guy can lift himself easily, as his strength relative to body weight is higher.
- “Livelihood” is the key word
In everyday conversations, “wealth” refers to the 1st, but once a while the speaker mean Fuller wealth.
— SG vs US — I feel SG citizens are wealthier by Fuller Wealth, but NY residents are slightly wealthier by ExclusiveClub wealth. Here’s why.
Aha – For a resident in a given country, subsidized education, subsidized healthcare, subsidized home ownership, Denmark-style income security … contribute to her Fuller wealth, but none of these contribute to her ExclusiveClub wealth in the home country.
— low vs high ground — Fuller wealth determines whehter you are on cash-flow high ground or low ground.
Exclub sometimes lies. You would think every member of the club are on high ground, but some exclub members actually spend all and carry heavy debt, trapped in the earn-spend cycle.
If not under cash flow pressure, these exclub members are often under work pressure.
— inflation
Aha – local inflation (including globalization reducing min cost@basicHealthy Food ) affects your Fuller wealth but doesn’t really affect ExclusiveClub wealth. Inflation aggravates the heavy weights for every strongman. Food cost deflation simply drives ExclusiveClubs to consume fancier food.
Transport inflation is kinda unavoidable, but not food/clothing. In a high-inflation period, some very cheap choices are often available — basic-healthy. So I would say Fuller wealth erosion can be managed if you lead a frugal existence.
— How is investment impacting each definition?
I feel current income from investment is crucial for Fuller wealth.
Exclub tends to focus on net worth.
— Earn/Save/Invest — Fuller wealth doesn’t emphasize Earn. Exclub demands lavish spending and trashes the saving habit.