Too many times we confuse being rich with being wealthy. We tend to think that if you are rich, you are wealthy. And if you are wealthy, you have pretty much everything you need, which is what rich people seem to have. But being rich and being wealthy are NOT the same thing. So, what is the difference? Let’s look at each one to figure it out…
Being Rich
People who are rich tend to have a lot of money. They also tend to be very outwardly about the money they have. They typically live in the fancier homes and drive the nicer cars. They will eat at the nicer restaurants and wear the latest styles in clothes. Typically, the more expensive brands. These people tend to show off their money and focus on spending here and now. They tend to have lots of money and make lots of money. While this seems great, their riches are only sustainable as long as they are working. If they stop working today, they cannot maintain their standard of living.
Being Wealthy
Wealthy people don’t worry about money. Having lots of money is a great thing, but never having to worry about money is even better. A wealthy person has built sustainable wealth and will remain wealthy. Even if a wealthy person stops working, their wealth is self-sustaining, so they never need to worry about money. Wealthy people are financially free and do not need to live paycheck to paycheck. They can stop working today and still maintain their standard of living.
Think About This…
Think about the many professional athletes and celebrities who were once on top of the world, making lots of money, living in the big houses, with 10 cars, being very outrageous with their money. Some of these same people are now broke and bankrupt. They made lots of money, but didn’t do anything smart with it. All they did was spend, spend, spend. They did not save it or invest it into things that could grow their money. For this reason, once they stopped earning the big money, they could not sustain their lifestyle. They were rich, NOT wealthy.
Final Thoughts
Many people can be rich, but it takes more planning and long term thinking to be wealthy. Rich people can make tons of money, but fail to use that money to grow wealth. They use their money to be more flashy and buy things in the here and now, with not much thought towards the future. Therefore, when they can no longer earn that high income, their lifestyles take a nose dive.
A wealthy person can easily sustain their lifestyle whether they are working or not. They do not have to worry about money because they have saved and invested their money to the point where they could maintain their lifestyles without ever working again. They planned for the future, made good investments, and can now live a life worry free of money.
Being rich is great, but being wealthy is even better. If you are rich today and not doing anything to establish any wealth, I strongly encourage you to reconsider. Cut back on the flashy lifestyle and put a good portion of your money into savings and investments. You can still live a great life by being rich, saving, and investing. Before you know it, you will have accumulated enough wealth that sets you financially free. You never have to worry about money again. As Forest Gump said when explaining a call from Lieutenant Dan,
“Lieutenant Dan got me invested in some kind of fruit company. So then I got a call from him, saying we don’t have to worry about money no more. And I said, that’s good! One less thing.”