Wealth = Have ÷ Want

In case your paths haven't crossed yet - Jacob Lund Fisker's ideas might be valuable to you.

This is a simple and elegant version of the ideas described on MMM’s blog.

Your website and overall tech/digital philosophy are such great examples of floating with less. Very inspiring.

Can one think of reducing their needs before it hits a point of satiety? In this internet age of comparison, this point may be out of reach for most individuals.

that's great pov on wealth. Thank you.

I like to think of wealth in two categories: short-term wealth and long-term wealth.

Short-term wealth refers to the income you generate from your current job or activities versus what you need to live. For example, if you earn $10K a month and your expenses are $8K, you are financially secure in the short term.

Long-term wealth refers to the income generated from your investments versus what you need to sustain your lifestyle. For example, if your investments generate $10K a month and your expenses remain $8K, you have achieved long-term financial stability.

Based upon your text you can add the inequalities:

Poor: Have/Need 1
Rich: Have/Need >> 1

I like your assessment of what it means to be wealthy. And it makes great sense. Thanks for your lucid writing.

As a math fan, this essay makes wealth so clear. We often focus on having more, but the real game is in needing less. True wealth isn’t just about what we have, but how little we need to feel content.

The weird line that raise my eyebrow is :
"Making money depends on other people, so it’s harder. It’s not entirely under your control. It’s an outer game."

If it is the case, then someone isn't independent... or the way someone's makes money isn't independent.
Making money should be our inner game... should be under our control.

Reducing or adding expenses is a choice... and ln

Knowing that we have choices between reducing or increasing expenses (money) is the real independent.
Making money should be our inner game.
Seems like other people which decide either give or not give us their money... but we are the one who control their decision, or at least control the situation surounding their decision.

Embrace the hard... n make it our independent factor.

I knew one business guru said. :
"There are two kind of people that make a lot of money in business, the one who is smart, and the other who is lucky.
We can't rely on being lucky. Being lucky one or two times is ok, but it wouldn't last for long."

Our lack emerges... then we try to justify in any reason... sometimes by being more "philosophist" (seeming wise).

I have one thought about rich vs poor.
Rich is about having choices. ( increase or reduce expenses )
Poor is about no choices. ( very little money... reduce only )

The extreme example story is the old age story.
When we were young, we joked around the old people because of being old.
Then the time pass, n we get older n older age... n being old ourselves.
We are the old now.
There's nothing to joke... we are being the joke itself.
The one who is truly rich is the one who have "a choice" to reverse or not reverse the age (aging).
The one who is poor is the one who accept it as unavoidable destiny... n justify it using more n more philosophies... being wiser.
"Death is peace."... how wise is it.
"Death is the end of pain."

I still enjoy wanting and receiving more: travel, new hobbies and new food. For this I just work. Reducing all the things I enjoy and which require money will make my life miserable. So, I am trying to earn more while I can (:

Simple Living is Beautiful

But how to need and want less? Could you elaborate more on that?

I remember "comparing down" from previous posts.

This formula of wealth is simple but not easy. At least not for me.

"Halving requirements is the same as doubling capacity" - Nigel Calder, talking about batteries on boats, but an excellent principle for life!

Zaky mentioned luck in getting accomplished. I suspect making money always involves luck, and I suspect our culture has a blind spot for this because our ego prefers to think we did it all ourselves. Since I can't step outside my culture to observe, I don't really know.

MKK asked how to decrease needs. Among the ways are to switch from being other-directed to inner-directed. Which means, for me, getting free of not just visible people, but the "committee in my head."

Today I wasn't jealous at all when I saw a chap on the sidewalk with a floppy hat and long coat like on TV. I was sure he was a hero in his own mind. I reflected on how I prefer to be a secret hero to myself without people being able to tell.

Speaking of clothing, I don't need a lot. Better to pay twice as much for half as much stuff. I don't wear visible logos for others to see. "Does it make me feel good?" versus "Does it make me feel good that others would see it." The world is not black and white, it is normal for to have mixed motivations and mixed feelings.

Maybe I need beauty around me, but I don't go by the the price tag or get greedy.

I think a sad need is to say, "I'm going to get "a" tattoo" rather than first finding an actual tattoo that I truly like. The same principle applies to wall art and sculpture. Art is like busses: I can afford to wait for another one rather than rush and trip and fall.

Rudyard Kipling once described a soldier eating plain bread so he wouldn't get spoiled into wanting fancy bread. I too try to look ahead—will I get spoiled?—before I treat myself.

My biggest need is to feel "a margin of safety" in life, for money, time and other areas. Accepting this need makes self-discipline easy.

Wow, this is very insightful, Thanks!

Yeah this one makes perfect sense. Hence why I feel wealthy with a pretty low income if you think about it, barely make any money but don't really need that much.

That point about wealth being interdependent on other people also brings some comfort to me since it's not all your fault if you're not making any, nobody has just decided to purchase (yet).

A lot of the pleasures that money can bring can be really cheap stuff like cooking good food for example, it doesn't cost much to cook yourself a nice pizza every once in a while.

I earn around 800 euros per month from just government support money and I can't afford much but I can still eat pizza every day if I want to if I cook it.

It's so liberating to free yourself from trying to earn money all the time, it's really an annoying game to begin with.

Be happy with what you have, it sounds like a cliche but it's so true, and focus on frugal pleasures. You can do a lot with 10 if you've got the right attitude.

Here's to being happy with very little money.

For example once I did a mental experiment: "What would I buy with all my money"

It came down to me wanting a collection of art for myself. Then I realized I can actually print high quality posters for free in our Oodi library here in Helsinki, Finland.

So my money dream came true without having to spend a dime.

So I basically want to own some art and I can get it for no cost whatsoever and eat all my favorite foods if I just cook them myself. Now all I have to do is earn rent money, really makes life a lot easier and more enjoyable.

That's why I feel rich and my business isn't exactly some 7 figure business like people seem to have those too, but I couldn't really care less and am so much happier with my frugal life.

Some of my sweetest memories are from being homeless for a while and living in my car, those were some ecstatic times.

A couple of times at work we all got a big bonus. What to buy?

With my. first bonus many years ago I bought a stereo. Which has since died and never been replaced. I already own a radio and a television.

I told co-workers "I'm 'the man who has everything' so it was hard to think of what to buy. So I bought wool." Yarn? "No, I bought wool snug underwear and long underwear. Now I can be extra warm. That's all."

My sister only hears the radio for a half hour driving into town for supplies. That's enough for her. At home she reads.

For a few years she told her children the TV set was broken. Then her new husband, to her chagrin, plugged it in!
Oh, and when I take the kids to the cinema, they do not tell me they "need" popcorn. (Neither do I)

To be fair, for most folks, when Have>$10M, focusing on reducing Need is not that hard. :-)
Actually my rich friends are the ones that have the hardest time reducing their “needs”. — Derek

Reducing needs is partly practice. Just as one can get amazing results in adding, such a skill in a hobby, or fitness, so can one get amazing results in reducing.

For example, as a young man I used to need two and a quarter teaspoons of sugar per coffee. I soon got it down to a quarter teaspoon. Sound impossible? Now it has been decades since I put any sugar in my coffee. I've saved a surprising amount of money and calories.

Hmmm. Lowering my needs. Quite a concept. I was a Military brat, and have moved over 50 times in my life. Growing up, we could only take one box of our things. Now in my mid70s, after being attached to things my entire adult life, I’m trying to downsize, so I don’t leave a mess for others. It’s depressing and oh so hard, because I’m trying to find homes for the things I have treasured. So my life has been a vicious circle in some ways. Find the things, house the things, dust, clean, insure and protect the things, while enjoying them, and ultimately try to rehouse the things. Wish I read your book in my 20s.

So true. And difficult work. Changing your desires is the key to progress in all areas of your life.

Thanks for this insight in this time of uncertainty for me. There is a real possibility that I could get laid off, but I'm not too worried or depressed.
We'll just have to work on reducing our needs and I'll get a different job, one that probably won't pay as much, but will be fulfilling, like teaching at a college. That has always sounded fun for me.

Thanks for helping me focus on a new perspective.

Why is it division and not subtraction? Is that to reflect that reducing need is proportionally more valuable than increasing wealth? Eg

Current 10 ÷ 10 = 1
Earn more 15 ÷ 10 = 1.5
Need less 10 ÷ 5 = 2

With division, once you need very little, even tiny reductions in what you need have a massive impact.

10 ÷ 0.1 = 100
10 ÷ 0.05 = 200

Does that reflect reality?

I have some great challenges in my life this year, and I do feel that the only thing we can realistically control is our body and our own actions. In today's world, especially if you work in tech, everyone is constantly evolving and changing, so it's better to play the inner game and focus on self improvement.

If you truly want to need less and want less, you have to understand your body in different ways. This means going to a place you don't feel comfortable in, setting up a situation you feel uncomfortable. Just uncomfortable, and make sure you are in control, and don't push too hard.

Also for Gavin James (#26):

Everyone is in different situation, so the article might not fully reflect what you really need. A good article should be thought provoking, not trying to be right for everyone. When you realize you need more subtraction than division, then you know the article is good because you find your cure with the help of it, not because it is absolutely correct for you.

1. Integrations .

"The best life is the one in which the creative impulses play the largest part and the possessive impulses the smallest.", by Bertrand Russell


“We act as though comfort and luxury were the chief requirements of life. All that we need to make us happy is something to be enthusiastic about.” by Abert Einstein



"The secret to living long is: eat half as much, walk twice as much, laugh three times as much, and love without measure.", Chinese proverb


"Who is happy, is rich", Confucius


2. Great article, congratulations, above all because you have walked the walk and not just talked the talk, great example for your son and your close friends!

All The Best!

Fabrice, greetings from Italy.

1. Integrations. Second and last part.


“I am an advertiser: yes, I am the one who sells you all that crap, the one who makes you dream of things you will never have. I drug you with novelty and the advantage of novelty is that it never remains new. There is always a newer novelty that makes the previous one grow old. In my profession, no one wants your happiness, because happy people do not consume”, by Frédéric Beigbeder, writer, editor, advertiser.



“In the second half of the 20th century, big business suddenly discovered that truth is not important, what matters is attraction. Once we have created information-attraction, we can sell it anywhere. The more attractive it is, the more money we can earn… The transition from the criterion of truth to that of attraction is the great cultural revolution of which we are all witnesses, participants and victims,” by Ryszard Kapuscinski, Polish writer.



2. Really reat article,again congratulations, above all because you have walked the walk and not just talked the talk, great example for your son and your close friends!

All The Best!

Fabrice, greetings from Italy.

Not a new idea, but another way to manage needs is when your resources (such as payday) increase, try not to have your needs increase by the very same amount.

I do so. Hence I have been a in a good mood for many years, out of gratitude from being so "unexpectedly" rich. Every week, after I do my chosen-in-advance amount of investing (and putting into buckets for yearly payment of insurance, taxes and so forth) I reward myself by feeling free to spend, guilt-free, whatever is left over.

My bank manager helped by helping me to set up buckets. I am so glad I asked whether he had any ideas.

My favourite bucket is for holidays, which makes spending less on luxuries and restaurants feel natural and meaningful. It sure helps to have such a goal.

Re: 22.) "Actually my rich friends are the ones that have the hardest time reducing their “needs”. — Derek"

In this equation, maybe it would be more informative if "needs" were to be termed "wants?"
Good point. Thank you. — Derek

It's a funny thing. Derek has just posted his thoughts. This equation is correct, based on 'his' life experiences. Plenty of people will argue that it's wrong. That's their perspective.
Here's the thing - it will not make sense to a person who has not attained Derek's level in life experiences.
For example - don't you think that there were poor people in Kapilvastu to whom Buddha's choice to abdicate his throne and live simply seemed crazy and non-sensical. But - once you have attained a level where trying to prove yourself or trying to earn more stop making sense, it's easier to give stuff up. To those of us who're conditioned by parents and society to 'achieve more' or 'realize their potential' - this giving up will not make sense. Calling it 'pretending to be wise because you can't have something' is personal incredulity.

Appropriate and Inspiring

I like smart Youtube, and I disappear down that rabbit hole for long periods of time.

But recently stupid Youtube has been sending me a pop-up advertisement (dialogue box) offering, for free, two months of "advertising-free" Youtube.

Are they kidding me? This is a trap!
Hoping to make me, after two months, "need" Youtube without ads. And then needing pay for it, forever.
I refuse!
ublockorigin.com/ = no ads on YouTube — Derek

It also means that if your ‘have’ is even a little number while your ‘want’ is 0, then you have infinite wealth.

Very interesting way of defining wealth. You got me really thinking differently about my "needs" now. My brain is already running a script in the background. Kind of like a wider-angle lens for my outlook on life.

Once I got my head out of the idea that wealth is just monetary, I was a lot happier. I still think a lot about money, but I give thanks for friends, family, skills, time and a lot of things that make me wealthy but not rich.

The same thoughts apply here too though - if you're forever looking for bigger, better, more luxary, etc, you're never happy with what you have. I love driving, but I don't need a 911 GT3 to love it.

At my home, I have a flat rock and etched into this flat rock is the saying "Happiness is wanting what you already have". But I never thought of it as an equation. That makes even more sense!

Just brilliant. Your writing is like how you spend money it seems. Essential, no wastage, economy of expression, thoughtful depth. Thank you.

Happiness = Reality minus expectations

That’s easy to say when you are already quite wealthy.

Wealth is options . Wealth is the ability to choose to “want less” because you are already quite comfortable and safe. Poverty is not just about wanting. It’s about knowing you have to scramble daily to make sure you don’t loose the apartment that houses you and your two small children while working endless hours with very little rest. And knowing you won’t be able to afford a day off any time soon. Poverty is putting back the one extra thing you “wanted” at the grocery store, sometimes along with two of the things you needed because you couldn’t afford it. And you - and the children- go without. Poverty is the exhaustion of living in fear that you won’t make all the bills this month, and you lay awake at night wondering how to make it stretch for the basics. Like keeping the lights on (and the heat) and some peanut butter and milk in the house for the kids.

Wealth is getting to choose the neighborhood you raise your kids in so they get access to good schools and safe streets. Wealth is getting to be there for them when they get home so they are watched and safe and not having to choose between that and keeping those damned lights on.

I raised two children as a single mother and even though I had a college education and family support, I still experiences these things in real ways. But I was lucky because I had family who was my safety net. I have met others who didn’t have any safety net. And no options to “.want less”.

Only wealthy people say stuff like this.

You don't know what you can sell something for... but you know what you'll buy it for. Profit is in the buy of the undervalued. Kind of like... you've got today but you don't know if you'll get tomorrow.

I needed to read this today. Thank you Derek, always inspiring.

The unique intersection is when you want less but your kids need and want more. :)

I love this! I will be actively thinking about it now, and weaving it into my strategy for living. Thanks Derek!

Yes Yes Yes.
Greed is the bane of our civilization.
I always love your writing, your thoughts, your perspective.
I feel blessed to be in your loop!
Thank you!

www.phyllischapell.com

as a formula, it breaks once you want very little. You don't go to infinity happiness.
but that's not a big problem, because if you are truly at that stage, you're not looking for formulas on how to be happier :D
also don't put it in your books!
'Someone told me that each equation I included in the book would halve the sales.'
- Stephen Hawking
finally, referencing your favourite hickey talk simple vs easy, i think you mean simpler where you write easier ;)

Thanks for this! I needed the reminder today. :-)

There is a buddhist teaching saying that you are Rich When enough is enough,

Thank you again Derek!

I used to envy people I know posting about their travels, dining out, and shopping. I couldn’t do those things because I’m in debt. But when I started to focus on the fact that my basic needs are met, I’m surrounded by people who care about me, and I have peace of mind, the envy faded. Instead, I began to feel grateful.

My father's advice, almost a sermon at the dinner table was to control what you want. You can often afford the purchase price but depreciated value, maintenance costs and insurance cost add up toore than purchase price over the life of the thing you wanted. Most of what we want are costs, not assets. Reduce your wants to preserve the only thing you can not buy - more time. Use that time to build relationships, those relationships will add healthy years to your life.

A great way of re
framming a truth!
Thank you for the reminder.

Excellent thoughts! Thank you!

Love it!

I truly appreciate your thoughts, and agree totally.
Also, as an early adopter of CD Baby, and owner of a small, very small, Indy label, I appreciate your work on that level quite a bit. None of us know quite what to do now.

Love this interpretation- they say the secret to happiness is low expectations but this denominator approach is better.

Thanks for the reminder. I didn’t grow up with a lot of financial wealth but was rich in family and friends who weren’t always chasing money or always wanting more to keep up with others.

This is true to a certain extent.
For me, wealth is when you own your time, when you wake up and decide what you want to do, rather than being forced to do something to survive.

Idk Derek I want a lot and strive for a lot. Get Rich or die trying

As always thank for sharing. You have a well attended platform. With the thoughts you put forward, often nothing I haven’t experienced before, the opportunity for the readers to provide commentary is where the freshness and insight comes in. All three of your offerings provide great opportunity for a wealth of independent insight and inspiration.

why division and no subtraction?

I like the concept a lot. recently I had to give 12 names to give references and realized I had more friends from work than 12 to choose from. I felt rich!!! But before that exercise, I felt I had very few friends at work. so reminding ourselves what we have is a good exercise.

This is just brilliant. I love your work and use it with my athletes and readers...love this one a lot.

Years ago I heard a finance expert state that the goal shouldn't just be to have a lot of money, but to not need a lot of money. That has always stuck with me.

What ways have you found to want less? How successful have you been so far?

Is wealth useful but not true?

Stoics said a person with only a loincloth could be grateful they didn't have to go naked.. If they did lose it, they could still be glad they were healthy etc !!
I'm working to apply it not just to the material realm, but, say, the emotional /mental realm. Perhaps one's spouse does not act the way one prefers.. Still; is the cup half full for instance ?

Gratitude is the necessary precondition to happiness. There are no happy ingrates. Living a life filled with gratitude is rewarding, in and of itself.

A fine Rx from Dr. Sivers: An antidote to modern American consumer culture, simpley put: Want less. It could be the new American dream . . . if we could just wake up from the current one (which, for some, might be more of a nightmare).

I fully agree with this statement. And I have lived with this since 1999. I retired in 1999 when I was 37, moved to a simple home in the mountains in India and lived there peacefully for next 20 years. I had a nest egg, and the idea was to stretch its life by reducing my wants.
However, I don't know whether it is possible for more than half the population of the world. Because in developing countries like India unexpected expenditures are too many. The most frightening expenditure for 1.4 bn Indians is medical emergencies. The public sector provides next to nothing. Totally shoddy service, which nobody wants. And at the same time there is no mechanism to control the prices charged by private healthcare providers. As a result, today India is home to millions upon millions upon millions of people who have been reduced to wretched poverty simply because 1 or 2 family members had some chronic disease. (Covid has created a totally new level of poverty. Millions of families have lost all that they had saved during the past decades.)
Because of this, nobody wants to stop working here. Everybody wants to gather as much as possible. And in a stagnant economy making money is so stressful that it leads to extra diseases.
This creates a feedback loop.
(I could implement this formula, because I did not encounter any medical emergencies.)
So, I'd say that this statement is true in the first world, and in situations where future is likely to precipitate within reasonably safer limits.

I couldn't agree more.Material perspectiveI want not much, so i'm happy.knowledge learning perspective.I want a lot.So i was not happy.i've realized it.And i have decided to change.Is there any book or people have an approach how to shut down your brain everday, every week,month....in a real life?

LOVE this!!!!!

Trying to convince my family that I actually do not want anything for Christmas is surprisingly difficult. I finally had to give them a charity so they could at least donate some money.

If you could take care of your essentials,Health, Food, Water you are rich!
Much love and God bless

You communicated this concept with abstract language. You might supplement this with a specific, concrete example of a life getting better.

that statement reminds me of an old old American indian saying .....the greatest wealth is a poverty of desires .....you are tapping into the chiefs. peace on you !

Another point of view and one that I have expressed to my children is that “having everything” in a material sense does not mean having one of everything that exists. Rather, one needs to figure out what things are important to oneself and have those things. Any more than that and you can quickly become a slave to your possessions.

Thank you for your insightful and provocative thoughts, Derek.

My brief reaction:

From a more mathematical approach, the equation equals zero (approaches zero, to be more precise). Haves are finite but wants are infinite (what's the limit really). As we know, any number divided by infinite equals zero. Hence, in this equation, you suggest simply keeping the wants within limits, i.e., to make them finite. This would make wealth only possible but not necessarily larger.

Now, what happens to really poor people, those who have nothing or close to nothing? Let's say they "have" zero. In this situation, in the equation, their wealth would be also zero, as dividing zero by any number (regardless of its size) equals zero (mathematically speaking).

So, this equation may have some difficulties in being applied to very poor people (zero haves or numerator) and very rich people (infinite wants or denominator).

Also, haves and wants are context-specific and vary along the income/happiness distribution, so as always, the equation requires to add: keeping everything else constant, which is where exciting things really happen. And finally, haves and wants are not totally separate from each other, as one of your responses in the comments suggests: rich people have more difficulties in reducing their wants than the poor do (Kahneman and Killingsworth did an adversarial collaboration that resulted in a paper that may explain this pattern, or at least part of it).

Read somewhere of a thought experiment. Imagine you are the only person on earth. Where would you live if you could live anywhere. Most people imagine a mansion but in reality being alone you would pick a small apartment. Same for the car you would drive, you think sporty but you would end up with something practical. Most need for wealth is about social validation not a personal need. If you overcome the need to be validated by others you end up happy with simple things, and focus on true friendships.
I watched the Jake Paul fight the other night and the only thing that stuck me was him walking next to a beautiful woman. But there was zero affection between them. She was as important to him as the gold around his neck and he was just the needs to be in the spotlight to her. Social validation is a prison.

Well Said!

'A man is wealthy in proportion to that which he can let alone' Henry David Thoreau

It is your needing that makes you feel as if you have not. If you learn to not need, to not try to hold, then you will find that you do not lack.

There are people so poor that the only thing they have is money.
Oooooh! Good one! That sounds like something Oscar Wilde would have said. — Derek

Maybe expanding on this?

Perceived Wealth = (Material Assets + Income Stream) × (1 + Life Satisfaction) × (Future Security/Future Needs) × (Freedom of Choice)

or?

(Assets + Opportunities) * Happiness
Wealth = -------------------------------------------
(Expectations + Desires)

Morgan Housel's Idea of happiness as result minus expectations we can use the same for wealth as well.

This is so good, and definitely what I needed to hear this morning :) Working on my inner game this week.

If you had to carry everything that is important to you in 1 suitcase, 1 carry on and one backpack and live your life out of these 3 small pieces for 6 months what would you take with you. Even better experiment would be knowing your house will literally burn to the ground tomorrow and you have 24 hours to get these 3 pieces of luggage together for an extended stay in a friends or family members house, what would you bring with you. The answer to this question is literally what “stuff” you will need.

Based on this you could literally pack these pieces of luggage and live out of them in your own home for a few months. During these few months you can start to remove all of the other things in your life. Sell them, donate them, throw them away. Start fresh. Not buy anything else for at least 3 of the 6 months other than food and absolute necessity items.

Doing this shows you how you relate to items you deem necessary and shows you how you can actually live if you choose to. By living with less you naturally want less. Maybe doing this experiment over and over will eventually bring you to a point of contentment with your life and less reliance on the stuff that fills your life. It will also allow you to spend less because you are not in the accumulation phase of life for once.

It seems like an extreme way to make things happen until you have actually done it and learned some lessons. Then it becomes something that is completely obvious and you will be able to ask yourself better questions. Not so much why is my life not happy, but wow, now that I fully understand how my prior lifestyle was making me feel, what else can I do moving forward to increase this happiness I've found letting go of my material anchors.

I’m going to sound a little contrary here but I think it’s important to “want”. It gives me something to be excited about, it helps me be creative. However fortunately most of the things I happen to want don’t cost buckets of money and aren’t related to advertising or heaven forbid, social media influencers.

Essentially therefore, happiness or wealth is about living within your means.

Hi Derek,
Love this reflection. As we increase monetary wealth we often adjust by increasing the wants too, and the cycle doesn’t stop - eternally unfulfilled. So fulfilment and happiness come when we don’t increase the want when your have increase

Yep, totally agree.
Decluttering also fits into this. Having less costs you less both financially & emotionally.
Also owning what you do have fits into being wealthy, you are always getting wealthier or staying the same, but never going backwards due to paying debts.

Fascinating! Your perception VS mine VS theirs. Access the infinite intelligence and wisdom within you and you'll get the ONE and only answer. Food for thought :)

I’m no intellect for sure, but I find my idea of wealth intrinsically linked with “how much time I have and what I can do with it” :)

I can remember from my younger days we didn’t have so much in our field of vision - things - so we could then fill that field with ideas, dreams, and we would then create….. a lot of the times our futures.
Now our field of vision is choc full of things - everywhere we look - items which contribute minimally to our survival, except they may make things easier for us.
And we covet these things in this material world today.
Maybe if we can find a way to remove the clutter from around ourselves - we may find surprisingly, we thrive with less!!

* Money was created by Humans and will forever divide us
* Time was gifted by the Universe and will forever unite us

It is amazing what I find in my head and heart when asked a great question. Thank you mr Sivers

Sorry for so many words.

So good!! Love the concise clarity

I think that your have must also be "invested" have to make it a wealth

Advice of the century!

Hi Derek
Thanks for this. Very relevant to where I'm at.

love it! thanks for the wisdom. Feel richer already! : )

A simple inspiring message, that can change everything in only a few words. Excellent. Thanks.

I'm at a transitioning period in my life. I needed to hear this!! Thank you!

Wealth has no use to the dead. I would give it all away immediately to spend another hour with my late darling wife.

Thanks, Derek, this is a great reminder.
And it also reminds me of two quotes I like:
How much is enough? Just a little more.
I have more than you (talking to a billionaire) - I have enough.

really like the mindset of looking into your needs! sometimes it's difficult in the world that we live, with all the competition and expectations around us, then it's critical to recenter on our own needs. Thanks for the reminder.

Thanks Derek, as you say a comment sticks in my mind from a long time ago. Spend less than you earn. Great insight.
Vinnychoff

"Not wanting something is just as good as having it."

I don't remember where I heard this, but after considering and working with this idea, I find that it is quite true!

wealth =[have-(needs x time)] /wants. For you the equation is simple because your needs are already covered over time. For many of us, the equation is much more complicated.

I agree. I have my guitars, my record collection, my dog and I live in a gorgeous place and make music, which is my love.

Less is more Derek and it unclutters the mind when there is less frippery and more life. Money is important and we all need it but it is a tool. When not chasing it, you are opening your eyes to the world. Having it buys you time unless you make enough to budget time. Every individual has a line in the sand about what their enough is. We really don't "need" a lot in the big picture.

What I like to think is that being wealthy is having more than you need. There is no limit of what we want, but what we need can be very little.

In other way, I also like to think wealth is the time under you control. No matter how much you have, if you are not free to manage your own time, you are poor.

👍. We don’t need to be superhuman, just to see it's super being human. Sadhguru said that… from my understanding there is so much abundance we can probably always find something to be grateful for… and that makes us feel wealthy. Thanks

Thanks for sharing and articulating this idea as beautifully and succinctly as always, Derek.

A similar concept was expressed by James Altucher as

happiness = reality / expectations

in archive.jamesaltucher.com/blog/one-formula-happiness-nobody-told/ (using many more words, though).

Corresponds nicely with the idea that you are only as rich as the number of things you can say "No" to.
Yes! I love that idea, of course. sive.rs/n — Derek

This message has been resonating with me more and more. I have genuinely been trying to appreciate having less stuff, rather than more.

The hard part of this is sharing this message with others.

I ended a long-term relationship earlier this year, almost a decade long. Part of the reason for the breakup was my desire for a less complicated life, with less drama, with less stuff. The other person didn't seem to share that vision. We met at a different point in my life when my vision was different too. I've changed, but I don't think she has.

You're at a crossroads between pursuing a more authentic life and letting go of someone who was a great passion for a long time. It sucks, but I think the distance was only getting bigger, not smaller. So, a decision needs to be made.

Thank you so much for your words. They always seem to inspire something better in me.

With your wallet, I’d say the same.

Absolutely agree with this assessment. This hits to the heart of the
flaws of Capitalism. I call it crapitalism.

Downsizing illuminates the immportant needs as opposed to the manufactured
ones by corporations, society and the media.

This is important and useful advice.

As usual Derek, you always take me to that next level. I totally agree with you. Perhaps another way of saying the same thing is :

Wealthy is feeling you have plenty and healthy is a feeling of well being, that what you do have is sufficient.

We typically need less than what we want.

I believe a collorary of your equation might be to substitute ‘need’ for ‘want’. Then substitute ‘gratitude’ for what one does ‘have’ for the mere quantity of ‘have’.
Gratitude (for what one has)/Need = Healthier Wealth

Why is it divided by, and not subtracted by?

Derek YES I LOVE this! I have always learned to live with little/less and I honestly have been happy. This has been my choice. My happiness comes from experiences - hiking in nature, time with friends, listening to music, etc. These are the moments that fill my heart with happiness and love and no material item will fill me up like this. No matter the amount of money in the bank, finding true joy and happiness in this way is what I feel is most important.

This affirms the old adage: "BETTER TO WANT WHAT YOU HAVE THAN HAVE WHAT YOU WANT."

Very succinct. It is a practical philosophy.

Nice thought-provoking equation. I would say it applies to subjective and self-perception only.

for example, if you need to draft policy that takes into consideration income or asset brackets, you should come up with more objective measurements.

reading this on a busy Monday morning, but it really helps me to calm down and focus on what I'm going to do next. Thanks for this inspirational piece.

Thanks for keeping these insights so succint! Best of all - it is NEVER to late to work on this equation

Funny guy :)
Doesn’t wealthy mean you have some extra that you don’t need right now but can use/consomme later?
Other equation is about enough

Simply Love it! Thanks, Derek

Morning Derek,

Enjoyed this article. I have been applying this over the years. It started when I sold everything I owned down to a brown leather holdall.

I can't describe the freedom it brings on a mental level.

A mental tip that keeps me straight is' one in one out'

Now I am working and own a flat- no debt which in London is true wealth, but still the journey continues...

Enjoy your day


Alan

That's an insightful thought on the value perception.

This is a great principle. Something I find myself struggling to do is want less. In my eyes, I haven't "Won" by my definition, the money game. Therefore, with lots of growth still to be had, I find it challenging to execute on wanting less.

I would love more tangible strategies, principles, or new ways of thinking that might better help support the practice of wanting less!

I liked this. I did have to actually do the math on a calculator to visualize. My only comment is, when you define the "sum" you state "You are wealthy (very wealthy or poor)" Why did you choose to state "are" rather than "feel"?

'Determining what I need' is an inner game that is under my control - true. But 'getting what I need' is not necessarily entirely under my control.

your excellent essay brought to my mind this quote by Thoreau:
A man is rich in proportion to the number of things he can afford to let alone.

Minimalizing is the way to go... if you can muster it. Some of my happiest days were spent hitchhiking around north America with a back pack. Even made it to the arctic circle picking up jobs along the way.

This is yet another perfect example of your magnificent mojo, Derek, and by that I mean sharing timeless, universal wisdom in a uniquely Derek way. Thank you!

Derek, so appreciate your perspectives and clarity of thought.

Having more than what you need can indeed mean you are considered wealthy but can also make you feel overwhelmed if you do not value all you have.

Thank you the reminder.

I agree with the premise and reducing the Wants is a liberating exercise.
I do feel Wealth also has an element of “enough for the unforeseen”.
In that regard, Needs can be different from Wants.
For example, if my kid was to need an expensive medical treatment, being wealthy would mean not even checking what the cost might Maybe the definition of Wealthy is to “have enough”!

Yeah + also the perception of value.

So we can be wealthy and not FEEl wealthy.
Just as we can BE loved but not FEEL loved.

Gratitude goes a long way to balancing the equation, especially in terms of neurochemical release.

I have a couple of cool formulas coming out in my new book [first book] on new years day :D

Motivation & focus is probably my favorite one. It's crazy how often and at how many points our perception of reality then changes it.

Yes, but the difficult question is always how?

Hi Derek!!!
I love this idea, and loving this idea, brings it down to one feeling....!! And so my heart is full!!!
Love it!
Thanks Derek!
Rachel :-)

Unsure about how this scales. As an individual I agree it's easier to reduce want than increase have, but how about for my family or community?

Hard to reduce my want if I suffer a chronic health condition, or my dependants (children, spouse, parents) do. How about my community wanting electricity for lighting for basic education in a developing nation, or water reticulation. I may have my individual needs and wants met, but still not be wealthy if I'm in Gaza, or the Ukraine, or even New Orleans (where I did an ambulance placement last year).

Is true wealth being able to have more than my wants, and those of my dependents and community?

A great reminder as I moved into NYC which is flashing with "desires"

Brilliant!

The older I get (now north of 50), the more I realize that my health is my wealth. If I'm not taking care of myself, it doesn't matter how much money is in the bank. Watching your parents age is a real eye-opener.
xoxox

I like this a lot. I'm curious on how you apply this philosophy to being a father. I'm preparing for potential motherhood and one thing I'm not sure about is how to prepare for the mix of giving my future kids the opportunity I want while raising them to have a proactive and independent character. Another thing is understanding how much financial security is important for us versus me maximizing the time at home. Any thoughts or frameworks that work for you Derek?

Love this. "Who is wealthy? The one who is happy with his portion, as it is said: "When you eat the toil of your hands you are fortunate and it is good for you" (Psalms 128:2). "

Where us the junction between this and lack of motivation

There is a biblical principle that says godliness with contentment is great gain. There is so much truth here. We bring nothing into the world with us and we will take nothing with. The only things that will last are God,His Word and Souls. To be content is the key. This is where we find peace. Peace to you Derrick!

It's such a simple concept, but it's hard to execute if you look to others as a benchmark. Thank you for this reminder!

Simple and powerful. Thanks Derek.

Hi there Derek,

Your words: “I used to look for ways to make money, but I haven’t done that in years. Now I keep looking for ways to want less”.

Knowing what I (think I) know about you, even if you didn’t express this, that’s how I always saw you.

Agree. That’s the way to live, to be able to be joyful.

Thanks for sharing. Have a nice day,
R.R.

Reminds me a bit of our amazing podcast conversation, Derek! This is refreshing to see, and it feels like the much more important game to be playing in today's day and age where there is a ton out there about abundance = growing into more in your life. I think a true practice of abundance is resting in "I am already enough and I already have enough." And the Stoic practice of voluntary hardship is helpful in cracking this formula too.

“There are people so poor that the only thing they have is
money. “ -
Bob Marley

I love how you put a this idea on a single page. Seen books on the topic. It also amazes me that once you dive into your wants you start to realize that big wants actually cost way less if you're creative. You don't have to sacrifice big dreams in the name of wealth.

A great thought exercise which illustrates a point. In terms of more complexity it is missing the components of context. The model breaks down at the extremes. As you have problems with food, shelter, and basic fundamentals the calculations change. It's true for the secondary ones as well.

No one ever succeeded in an inflationary society by denying themselves things they want. The theft built into the structure will force people to come out and grind it out while making sub optimal choices from bad choices. If you have the tools to resist this problem you'll do OK. If you don't, you'll be in trouble.

Hi Derek, how are you?

Wow! That’s really a great thought.

It makes sense and sometimes people are lost trying to get more they need thinking they will be the happiest person in the world.

To me be happy is enjoy the gift of leaving the Present

Thank you very much for sending me the message.
Best Regards

Marcos

To comment #1: Aleksandra…

Since reading your comment, I got hold of Jacob Lund Fisker’s book and have read it twice. It’s fantastic. The title is apt, but there’s so much more to the ideas than just financial freedom. Thanks for the recommendation; so glad to have stumbled across it!

I remember a young lady who went away to lonely Japan to teach English. Sure, the money-ecology (exchange rate) meant that she got paid a lot, by home standards, but she told me she was unhappy and so she spent a lot.

Now I notice myself spending a little more when I am less happy.

I guess taking care of my various needs is an indirect path to spending less and feeling wealthier.

Agreed. Less=more sometimes. The weight is lifted when there is no need for debt. Am I in a better position with less baggage if I’m simply trying to move forward? Nothing like the feeling of lifting the weight. Gratitude giving what you truly desired.

This is a great way to look at wealth. Most often this perspective comes as we grow older. It is natural to reduce the amount of things in our life as we gain this perspective. The Herman Hesse book, Siddartha, comes to mind.

Amen. 🙏🏼

Certainly money is an energy, a particular type of energy.

Our relationship with and our understanding of money will determine many things.

A healthy, abundant relationship with money can be very refreshing in any context.

To want less does not equate to having more. It equates to a particular psychology.

To be fulfilled on many levels will be a great treasure.

We can also consider what is desire, the energy of such.

What is true desire, and what is unconscious false desire…

To come to know ourselves deeply will free us of many unconscious desires or false ambitions.

From a place of great privilege it is quite impossible to understand poverty and lack. In this sense when Derek toys with ideas about wealth while sitting on a thirty million dollar nest egg, it is simple a matter of a fat man fasting for a few days and now claiming to be skinny.

Health and wealth come from within.

Probably Derek will understand his own situation better by understanding his sexuality and relationship issues on a clearer level.

A man with great financial wealth who is not free of the mind… is a beggar.

A man who has found this inner freedom, irregardless of circumstance, is free.

Freedom will be the ideal measure of true wealthy.

Money will always be the true measure of poverty.

Sexuality will always be a reflection of our genetic peace. Because when we are at peace, our sexuality is a clarity of our heart generosity.

In the words of the great Eric Cantona - “I love football”

✨🙏🏼💚

This is great and I 100% agree! Having a minimalist mentality makes you wealthier and wiser IMHO. I'm more grateful for the little things. I have less stress in my life too. These days I think like Suze Orman: focus on needs not wants. It's quite liberating having fewer wants. Cheers!

"want less"; yes, then it's easy to be wealthy!

I also feel that besides the general "wealth" measure, this equation might work to see different areas of life too...

Maybe I feel "wealthy" in terms of finance, while feeling/being very poor in time, or in relationships/friendships... What are one's haves and wants in each of one's areas of interests? And then, is there even one "wealth" measure in the end?

Thanks for sharing this, Derek! The equation you share is a clear - a simple path toward wealth. I have been intentional about reducing the Want over the past years. The cool thing is that it works!

Wealth = Have ÷ Want
I like it, It inspires me a lot, I start to focus on having something more than wanting something.
what a great idea,thank you for sharing.

As always this is a thought hack that truly makes sense and will be not taken lightly. Thank you.

Brilliant and so true. Is it capitalism run amok? Where does this desire to always want more come from? Evolution? Anyway, enough (affordable) food and a comfortable place to sleep is basic contentment. Always striving for more expensive things and larger homes is stressful because then you have to worry about losing it!

Insightful. I did this and then as I lost the love for technology and became older and more social - I stopped doing it and wants started increasing but now I am going back to have enough and wanting less and focusing on what I love. Life is amazing now.

I'm trying to figure out how to reconcile this with Naval Ravikant's ideas of getting wealthy first. There are a lot of monks out there, but not a lot of enlightened people. Maybe the goal is to get wealthy, and then realize you don't need it anyways.
Also see sive.rs/htl20 — Derek

Hi Derek,
Have been coming back to this post time to time.
and while I agree on everything you said in the post I have one question :
in this case isn't the inner game more difficult (time consuming and will add struggle with oneself ) than outer game as they same mastering oneself is more difficult than say learning some skill and earning money (process itself might be more rewarding for some) and then reducing the needs to be happy as then it means changing your core to suit external conditions.
would like to know your perspective ( Ignore altogether if its too naive :))