What's The Difference Between Rich and Wealthy?
Updated: Feb 25
Many people think that being rich and being wealthy are the same thing, but the difference between the two is tremendous. Wealthy people know how to make money. Rich people only have money.
While the rich might have lots of money, they also might have a lot of expenses that keep them up at night. Some of us might have a high paying job but might hate our lives when we have to begrudgingly get up to work every day and live in the constant fear of getting fired or laid off. The wealthy, on the other hand, don’t exist like this. Don’t get caught up in the facade of having a lot of money to spend but having no real financial independence. Here are 3 tips that you can start applying to your own journey towards becoming truly wealthy folk:
No. 01 // Be In The Business Of Knowledge
Once you know how to make money, you can not only build sustainable wealth but also know how to safeguard that wealth. If you should ever have a reversal of fortune, it's what you have between your ears that keeps your bounce back game strong enough to support you in making your fortune right back.
No. 02 // Know The Difference Between Rich & Wealthy
Rich people come into their money in a number of ways. They may inherit it. They may hit the jackpot. They may earn it in professional sports or over many years as a professional or a business owner. But how long will the money last? Will your cash flow ghost you once your earning power is gone? Can the efectivo (cash) be passed on to future generations? What if all your money decided to pack up and get the f- on? Do you have the skills necessary to get you back on your feet and thrive once again?
No. 03 // Measure Your Wealth In Time, Not Dollars.
How many days can you survive without physically working (or anyone in your household physically working) and still maintain your standard of living? For example, if your monthly expenses are $5,000 and you have $20,000 in savings, let’s consider your wealth to be approximately four months or 120 days. But if your expenses are $5,000 and you have investments that provide $5,000 a month, you have the potential to be infinitely wealthy.
Ultimately, it’s not all about how much money you make, but how much money you hang onto and for how long that money can get to work for you. A lot of people can become rich. But only financially intelligent people can become wealthy.
Stay fabulous, fierce, and financially savvy bellas.