Wealthy vs rich? Which one should you be?
In the English dictionary, several words are synonymous to each other and can be used interchangeably. While “wealthy” and “rich” may seem to hold the same meaning, there’s more depth to them than what you’re seeing on the surface. And while you might be wondering, what’s the difference? There’s a lot to these two words that you might not know. So, before you decide which one you want to be, let us explain to you the difference between the two to help you decide on your future aspirations!
What does it mean to be rich?
Rich is one of the most common words we hear in several settings: rich in character, in value, but often most, rich in money. You’ve guessed it, rich has to do with quantity and has more of a financial connotation associated with money. Being rich means you have a large quantity of money at your disposal. You may own a fancy car, live in a luxurious mansion, or are always heading to the shops to buy the latest items on the market.
But that’s not all.
Like everything in life, there are pros and cons to this notion. Because when you’re rich, it often comes at a cost. And a big one at that. If you look at rich people, you’ll notice two things:
- They aren’t necessarily wealthy, which we will explain later
- They tend to have their heads buried in debt
Because rich means overspending, many people find themselves in debt, particularly when they don’t have a proper handle on their money. Because they are spending their cash on overly expensive items and sometimes in an unsustainable way, they often end up broke.
You can be rich because of a business or because you’ve won any of our saving prizes, but if you don’t know how to handle that money of yours, you can never be wealthy.
What does it mean to be wealthy?
Now, while we did say that not all people are wealthy, all wealthy people are rich. Why might you ask? Because there is a secret recipe that makes this possible, which simply is money management.
Being wealthy doesn’t necessarily mean owning the newest phone on the market or living in a fancy estate, it just means that you have accumulated enough money, or net worth, to keep you going even when you don’t have an influx of money coming in.
When you properly manage your money, whether by setting long-term saving goals or deciding to invest in profitable projects, you’re keeping yourself financially afloat. And when you spend your money wisely instead of throwing it left and right, you help yourself remain wealthy, even if you don’t have a million JOD in your bank account.
To make it easier for you, assume you’ve saved up 30,000 JOD and your monthly expenses amount to 1,000 JOD, you’re wealthy enough to keep yourself going for 30 months even if you don’t have a source of income. But if you do have one, imagine how much at ease you will be, knowing you have enough money to cushion an unfavorable fall even if you are not filthy rich.
What’s the bottom line?
It’s better to be wealthy than rich, but there’s nothing stopping you from being both. All you need is some proper money management, and you’ll be a step closer to not only having enough money at your disposal but peace of mind as well.
Don’t just focus on how big your paycheck should be! Save 10–15% of your paycheck every month, pay off as much of your debts as you can, invest whenever possible (even if it’s in small projects), don’t overspend, and above all, budget and review your long-term financial goals.
If you’ve decided on what you want to be, then follow these simple rules and give us a call a few years down the road to tell us that you’ve made it!
