What Is Wealth?

Contrary to popular belief, you don’t need an Ivy League education or a six-figure salary to build wealth. The facts don’t lie: Ramsey Solutions’ National Study of Millionaires found that engineers, accountants and teachers make up the top three professions of millionaires.

Surprised? Those aren’t the careers most people picture when they think of millionaires. Many millionaires are ordinary, hardworking people you see every day—maybe you’re even one of them.

 

And that’s exactly the point. With a little hard work, focus and financial discipline over time, anyone can grow their money and become a millionaire in America today. A large income can get you there faster, but it’s not the key.

Wealth isn’t built with luck or chance—most millionaires got where they are by making steady, disciplined choices with their money that allowed them to save and invest (instead of giving all they earn to the banks).

So, what is wealth really? And what does it mean to be wealthy? Let’s take a deeper look.

What Is Wealth, Exactly?

Simply put, your wealth is the total value of everything you own, including cash, investments and physical property. The best way to measure wealth is by calculating your net worth—what you own (your assets) minus what you owe (your liabilities).

First, add up everything you have that’s worth money—cash in savings and checking, the equity in your home, 401(k)s and IRAs. Then subtract any debts you owe from that total. Ding! That’s your net worth.

 

If you don’t already, you can track your net worth over time and celebrate the progress you make. Just do yourself a favor and don’t check it every day—building wealth is a marathon, not a sprint.

When you set goals and hit major milestones, it’s easier to build the momentum you need to keep going. Tracking your net worth doesn’t just show where you are—it also shows how far you still need to go to hit your wealth-building goals.

What Does It Mean to Be Wealthy?

While net worth is an important measure of wealth, being wealthy also goes much deeper than what you drive, where you vacation, or what brands you wear. If you’re really wealthy, that means you have options for how you live your life, you make an impact through giving, and you’re leaving a legacy.

What Wealth Unlocks	Benefits	Real-World Examples
Freedom	You have options for how you spend your time and money.	You no longer have to go to work—you get to go to work because you want to!
Generosity	You can give freely without fear or guilt.	You could pay off someone’s debt, give to a cause you care about, and more.
Legacy	You can create an impact that outlives you.	You can leave an inheritance, fund scholarships, or take time to mentor others.

Being wealthy gives you freedom. 

Wealth provides the freedom to create the life you dream of living, not the life you have to live. When you’re not chained to your work schedule or trapped by living paycheck to paycheck, you can decide how to spend your most valuable resource: your time.

Wealth can open up a new world for you to explore and influence. You’re more available to the people who matter most to you. You’re able to spend time you never had before, whether you use it on hobbies or business ideas, because you’ve built a safety net to catch you if you fall.

Being wealthy allows you to be generous.

After you’ve taken care of your family’s basic needs, you can be outrageously generous—and giving is the most fun you’ll ever have with money! That’s because you’re blessed to be a blessing. When your cup is full, you can let it overflow for others.

On the Ramsey Baby Steps Millionaires Community on Facebook, Crystal W. shared that working the Baby Steps helped her build the kind of wealth that allows her to live and give like no one else. Over the years, her family has been able to give away seven vehicles to people in need of reliable transportation. “Keep up your gazelle intensity,” she says, “and you’ll be able to live and give like no one else before you know it!”

By working hard and building wealth, you’re giving yourself an opportunity to make a difference and help the people around you.

Being wealthy helps you leave a legacy.

Wealth allows you to make an impact that reaches beyond just you. If you grow your wealth, your legacy can have a ripple effect in your community—maybe even the whole world.

Legacy extends beyond generosity because it can outlive you and transform the lives of people you may never meet. Remember, wealth doesn’t exist for its own sake—it’s meant to be put to work. That’s what the Bible calls good stewardship: growing what God has entrusted you with to bless others and bring Him honor. Proverbs 13:22 (NIV) says, “A good person leaves an inheritance for their children’s children.”

What Is Considered Wealth in America?

Dave Ramsey regularly talks about how Americans as a whole have more money and enjoy greater comfort than people in most other countries. Even if you earn an average American income, you’re wealthier than most people on the planet.  

“We’re so prosperous that poor people are prosperous compared to other countries and other civilizations,” Dave said on The Ramsey Show. “If you make $34,000, you’re in the top 1% of income earners in the world. . . . Because of that, we’ve just gotten lazy.”

And according to the 2025 UBS Global Wealth Report, it’s clear that the United States is home to the greatest amount of wealth in the world:

• About one-third (35%) of the world’s wealth is parked right here in the U.S.
• The United States has the largest number of millionaires in the world by far, more than Western Europe and Greater China combined. In 2024, the U.S. added more than 1,000 millionaires every single day.
• The median wealth per adult in the United States is $124,041, which ranks 15th in the world.¹

So if your net worth is above that last number, you could be considered wealthy—especially in comparison to folks in most other countries. But if you’re looking at these numbers and suddenly feel behind, don’t be discouraged. In fact, you should feel inspired. These numbers show that the American Dream is alive and well and that anyone in America can build wealth over time—that includes you.

To build wealth in America, you need to stick to a monthly budget, get out (and stay out) of debt, live on less than you make, invest consistently for retirement, and practice generosity. That’s it. Building wealth isn’t complicated, but it does require careful planning and hard work. You can do this!

Wealth vs. Income: What’s the Difference?

We've talked about how wealth is measured by your net worth. It’s the difference between what you own and what you owe. Your income, on the other hand, is the money you earn from the work you do and the assets you own. This includes things like wages, salaries, business profits and interest from a savings account.

See the difference? Income isn’t wealth—but your income helps you build wealth. In fact, your income is your number one wealth-building tool. This is why it’s so important for you to pay off debt before you start investing. How can you save and invest for the future if you’re sending hundreds of dollars in debt payments to some credit card company or lender? Being debt-free unleashes the full potential of your income to build wealth that lasts.  

But like any tool, your income can be used to make progress or it can be wasted if it’s used the wrong way. It doesn’t matter whether your income is $50,000 or $1 million. If you decide to spend it all or go into massive debt to maintain a lifestyle you can’t afford, you’re not wealthy—you’re broke! At the end of the day, wealth is what you keep, not what you spend.

A lot of people confuse wealth and income—or think they need a huge income to build real wealth. But that simply isn’t the case. It’s a myth we’re going to bust into a thousand pieces right now.

According to The National Study of Millionaires, one-third of millionaires never made a six-figure salary in any single working year and more than two-thirds (69%) averaged less than $100,000 a year over the course of their careers.

So no matter what your income is, you can build wealth by staying out of debt and investing a portion of your income every month for retirement.

What Wealth Is Not: Building Wealth vs. Getting Rich

Now that you understand what wealth is, it’s also important to know what wealth isn’t. Specifically, there’s a big difference between becoming wealthy and being rich.

Rich people are focused on living it up in the moment—they have a high income and spend it on a lavish lifestyle. Their focus is not on building a solid financial foundation. Instead, they spend money they don’t have (often going deeper and deeper into debt) to buy stuff they don’t really need so they can impress people they don’t even like!

People can get rich in a moment by receiving an inheritance, winning the lottery, or signing a multimillion-dollar deal (like many pro athletes do). Sadly, it’s easy to blow through stupid amounts of money—you can make big mistakes in a heartbeat. And then there are others who “pretend” to be rich by going into debt to buy fancy stuff to impress people.

Being wealthy, on the other hand, is about having a long-term perspective. It means saving and investing so you and your loved ones have lasting financial security and peace. Not only that, it’s about finding ways to leave a legacy that will have a lasting impact in your community.

The good habits that enable people to build wealth (planning, discipline, consistency and generosity) are the same habits that help them stay wealthy—and grow their money even more.

You might hit the jackpot and get rich in a moment, but no one has ever built wealth by accident.

Being Rich vs. Being Wealthy: What’s the Difference?

	Rich People	Wealthy People
Focus	Income and lifestyle	Net worth and legacy
Purpose	Selfishly spend to impress others	Selflessly save and invest to bless others
Mindset	Short-term—living for now	Long-term—planning and giving intentionally
Habits	Borrow and consume	Budget, plan, give and invest
Example	Buying a flashy new car with huge payments	Driving a paid-for car and investing the difference

 

Does Trying to Build Wealth Make Me Greedy?

Not necessarily! You see, money is just a tool. Having more of it will make you more of what you already are. If you’re greedy and self-absorbed, having more money will unlock even more greed and selfishness in your life. No amount of money will ever be enough. On the other hand, if you’re a generous person, building wealth will allow you to be even more generous.

In other words, the person you’re becoming and how you handle money today will be magnified as you continue to build wealth. So the most important thing you can do is to build healthy money habits today that will help you build and sustain wealth in the future.

How do you build wealth without becoming greedy in the process? You can guard against the dangers of greed by focusing on three key principles.

Being a good steward.

First, think of yourself as a steward instead of an owner. In the Christian faith, stewardship means managing God’s blessings God’s ways for God’s glory. God tells us to be stewards over everything He blesses us with. That means our time, talents and treasures all belong to God.

A big part of stewardship is growth. Simply trying to prevent losses or break even is no way to live. We should try to find ways to grow what’s in our care. Why? So we can increase our capacity to bless others. Building wealth allows you to live—and give—like no one else!

Practicing generosity.

Second, be generous to those around you. Generosity takes the focus off yourself and puts it on others. It reminds you that the world is bigger than your own personal bubble.

Don’t wait until you’re super wealthy to be generous—start today. Look for opportunities to be a blessing to the people around you—your family, your friends, your church community, your neighbors. And it doesn’t have to be anything crazy—everyone can give something.

Leaving a legacy.

And finally, focus on leaving a legacy for your loved ones. Building wealth the Ramsey way is about legacy, which is the lasting impact you make on those who outlive you. Most of the time, that legacy comes in the form of an inheritance, but it also includes passing along your values to the next generation.

Leaving a legacy gives you the opportunity to live for a purpose bigger than yourself. Living with this mindset can change your family tree—not just for your children, but for many generations to come.

How Does Ramsey View Wealth?

Some people think money is the root of all evil. It’s not. 1 Timothy 6:10 (NIV, emphasis added) says, “For the love of money is a root of all kinds of evil.” Money itself is a tool. In the right hands, it can do a lot of good in your life and the lives of those around you. But if you make money the ultimate thing you’re chasing after in life? That’s when you’re opening the door to a whole world of trouble.

If money is the main focus of your life, you’ll never experience real peace because no amount of money will ever be enough. Life is about so much more than making money and building wealth. Don’t ever forget that.  

When you build wealth with a stewardship mindset while practicing generosity and focusing on leaving a legacy, you’ll experience true financial peace and become a blessing to those around you.