Say to yourself, “I am rich!” How old were you when you first thought?

Maybe it was after you received your first allowance or birthday card from your grandmother. It probably wasn’t a lot of money, but suddenly anything seemed possible.

When was the last time you felt like this?

As we age, our perception of wealth evolves to reflect the demands of life and the changing financial landscape around us. Rising expenses and increasing financial pressures naturally change the way you think about your finances.

A recent survey Jenius Bank’s study on the impact of money on mental health revealed a subtle truth: Being rich is more about our emotional health than the numbers in our bank accounts.

There is no specific dollar amount that guarantees a rich life, but that doesn’t mean you can’t “live rich.”

How do people define being rich?

according to Jenius Bank’s Mind-Money Connection surveyMany Americans define wealth in practical, grounded terms.

The top definition chosen by 33.4 percent of respondents was no financial debt. Financial freedom from debt (whether student loans, credit cards, or mortgages) seems to represent the first step toward feeling rich.

Following this closely, 33.1 percent of participants define being rich as retiring early without the fear of being broke. It’s not just the ability to accumulate wealth that’s important, but also ensuring that wealth lasts long enough to live comfortably through retirement.

Creating generational wealth, mentioned by 27.8 percent of the survey participants, is another important definition. For many people, wealth means securing a financial legacy that will benefit future generations.

Even higher income may not mean rich

Despite these definitions, many people still do not consider themselves wealthy, even if they have higher incomes. Only 20.4 percent of the general population consider themselves rich, but 32.3 percent believe others see them that way. This gap suggests that perceptions of wealth are often subjective and influenced by personal expectations, lifestyle, and even social pressures.

This sentiment is evident even among high-income earners. 45.9 percent of those making more than $300,000 a year still say they don’t consider themselves wealthy, despite what the numbers suggest.

Clearly, the feeling of wealth does not depend solely on income; It’s about how people perceive their financial situation compared to their needs and goals.

Differences between men and women when it comes to feeling rich

The survey also reveals a stark difference between men and women in feeling wealthy.

Surprisingly, 84.4 percent of women and 66.2 percent of men do not consider themselves rich. More tellingly, 47 percent of women think they are behind financially, compared to just 32.4 percent of men.

Even if the salaries are similar, the difference in perception remains; This suggests that factors beyond income, such as social expectations or financial confidence, may also contribute to these feelings.

This suggests that the gender pay gap may not be the only reason why women feel less wealthy. Instead, emotional and psychological factors likely play an important role in shaping perceptions of wealth.

How does the perception of wealth affect individuals?

The way people perceive their wealth affects their feelings about their finances and can significantly impact mental and emotional well-being.

According to a Jenius Bank survey, 39.8 percent of respondents feel their financial situation is below where they would expect it to be at this point in their lives. This gap between expectation and reality can lead to disappointment, self-doubt, and decreased confidence.

When individuals feel like they are falling behind their financial goals, this often compounds existing concerns about money, creating a cycle of stress and anxiety. This emotional burden often accompanies financial distress, affecting how they manage money and approach future goals. It’s not just about the dollars in their accounts; It’s also about the emotional toll of unmet expectations.

Financial pressure and mental stress can affect spending habits, long-term planning and career decisions. People who feel behind financially may struggle with feelings of failure, which can impact their motivation to take positive steps toward improvement. Over time, this can erode both financial and mental health, creating a feedback loop that’s hard to break.

Even if you’re not rich, what steps can you take to live richly?

Living richly does not require a large fortune. In fact, making smart decisions for your mental, financial, and emotional health can help you live a fulfilling life without having to fit anyone’s definition of “rich.”

By focusing on manageable steps and setting realistic goals, you can help you stay in control of your finances and enjoy a sense of wealth in your daily life.

Avoid comparisons

One of the biggest obstacles to being financially satisfied is comparing yourself to others. Whether it’s a friend’s new home or a neighbor’s luxury vacation, comparing your success to someone else’s makes it harder to appreciate where you are.

These comparisons can lead to frustration and poor financial choices, as you may feel pressured to spend or save in ways that don’t align with your own priorities or circumstances. Focusing on your personal goals rather than comparing yourself to others is key to helping you feel rich in your own life.

Schedule a face-to-face meeting with your finances

Even if you don’t consider yourself a financial expert, tracking your expenses can help you determine a plan that will unlock a richer life. Whether it’s paying off a credit card, saving for a home down payment, or meeting a retirement savings goal, these accomplishments help build financial confidence.

By celebrating each milestone you reach, you can experience a sense of progress that boosts your motivation, even if you’re not “rich” by traditional standards.

Handle your debt strategically

Debt can make it difficult to feel financially free or live richly. Carrying debt often causes stress and limits your financial flexibility, making it difficult to focus on other goals. By taking steps to become debt-free, you can help reduce financial stress and unlock more opportunities to live richly.

Start by creating a plan to pay off high-interest debt first and work to reduce your overall debt load. Although becoming debt-free takes time, it is one of the most important steps towards financial independence.

Make a savings routine

Even if you’re not rich yet, increasing your savings is another important step to living richly. Having an emergency fund gives you peace of mind and ensures you’re prepared for life’s unexpected expenses.

Accordingly Bankrate’s 2024 Annual Emergency Savings ReportA good rule of thumb is to save at least three to six months’ worth of expenses.

Jenius Bank’s savings accounts It offers a useful option for those who want to build their financial cushion while earning interest. By contributing to your savings regularly, you can create a sense of security that will help you feel more in control of your finances.

Invest in your future

Living richly is not just about the present; It’s also about investing in the future you want. This could mean financial investments, like contributing to tax-advantaged accounts like 401ks or IRAs, or taking steps to protect your financial security through insurance. But it can also include non-financial investments, such as furthering your education or purchasing a home.

Making smart, long-term investments in both your financial and personal life can help you create a foundation for greater wealth, stability, and freedom in the future.

In conclusion

Being rich isn’t defined by a single number in your bank account.

As Jenius Bank’s Mind-Money Connection research shows, most people have a personal definition of wealth. Financial satisfaction is closely linked to emotional well-being and self-perception. Living rich is more than financial success. It’s about making smart decisions that align with your values, setting meaningful goals, and feeling in control of your future.

Whether you’re working to pay off debt, build an emergency fund, or invest in long-term security, seek out trusted financial institutions and advisors who understand your goals and can help you achieve them. A good financial partner goes beyond offering products; aims to understand your unique needs and challenges. Jenius Bank’s survey is a perfect example of this. By exploring the relationship between money and mental health, Jenius Bank demonstrates its commitment to addressing more than business profits.

Look for organizations and partners that focus on the issues that matter most and make decisions that support your financial, mental and emotional health. This will help you regain your childlike sense of possibility and live richly.

Jenius Bankᵀᴹ is a division of SMBC MANUBANK. Member FDIC.