The Rich vs The Wealthy

There’s a BIG difference between being rich vs being wealthy. Most people don’t realize that trying to be rich can prevent you from becoming wealthy.

Yes, being rich means you have a lot of money. But being rich doesn’t necessarily mean you have a high net worth, or that you will always be “rich.” In fact it could mean you are in debt. Why? Most people who “are rich” spend more than they earn. They lavish on fancy cars and latest fashion designs.

Meanwhile wealthy people save as much money as possible and invest it in assets which is why they have a large net worth, spend less than they earn, want to build long-term wealth, and are understated (aka don’t own the flashiest things). They also know that in order to grow their wealth, they need to turn their cash into assets. That’s why wealthy people often diversify their assets through investment in the Stock market , Real estate and any other lucrative business.

The simple difference between a rich person and a wealthy person is that a wealthy person has sustainable wealth. In other words, a wealthy person will always be wealthy, whereas someone who is merely rich will only be so for a short period of time until the money is gone.

It all comes down to:
-How you spend your money
- How much debt you build-up
- How much of your money you save/invest

To start achieving wealth, and not just looking for ways to get rich:
· Start saving and investing as early as possible. (up to 10–15% of your month salary)
· Educate yourself on investing but know that you can’t put all your eggs in one basket.
· Think about your long-term financial goals and assets.
· Be frugal and don’t spend on unnecessary things

Lesson: To build a positive net worth, your spending needs to be less than you earn. It’s not too late to start making smart investment decisions!