Do you dream of becoming rich? Or maybe you want to be wealthy? But wait. Aren’t these two words just the same? Being rich means you are wealthy, right? And when you are wealthy, you are also rich, aren’t you?
Well, just so you know, rich and wealthy are two completely different concepts. By knowing their differences, it will be easier for you to make up your mind on what your goal should be, whether to be rich or to be wealthy.
What Does Being Wealthy Mean?
Being wealthy means being able to survive without the need for physical work but still being able to maintain the same standard of living.
It is not about the things you can buy but more about the ability to sustain your standard of living even without working.
The concept of wealth has something to do with sustainability. Wealthy people always remain wealthy. They may struggle with their finances for several years as they build their wealth.
But, with perseverance, dedication, and hard work, they become successful and sustain their fortunes along the way.
What Does Being Rich Mean?
Being rich means having an abundance of money much more than what the rest of the population has. A good example of a rich person is someone who won the lottery.
They have an abundant amount of money that they can use anywhere or any way they like.
But, how they use this money will determine if their being rich will last for a long time or not.
Difference between Rich and Wealthy
The simple and key difference between rich and wealthy is that wealthy people have sustainable wealth. As mentioned earlier, wealthy people will always remain wealthy while rich people will only be rich for a short period of time right until their money has been all spent.
Knowledge is another notable difference between these two concepts.
A wealthy person knows how to make and earn money while a rich person only has money.
The moment you learn how to make more money, it becomes possible for you to create sustainable wealth. Money will never stop flowing in. Even if you experience a downturn in your investments or businesses, you have the knowledge of how to make money again.
At the end of the day, being wealthy means that you are also financially free regardless of how much money you earn or make. You don’t need to worry about having to live from one paycheck to another. It is not the amount of money you earn that matters and instead, it is about how long this money is going to work for you.
Wealthy People Make Money In Many Ways:
- Real Estate Investing
- Stock Investing
- Starting Businesses
- Creating Side Hustles
- Creating Passive Income Businesses
The Wealthy Also Are Rich In Time
Wealth can also be measured in terms of time. Although the concept of being rich focuses on having a lot of money, wealthy people don’t need to worry about this at all.
Sure, rich people have tons of money but at the same time, they also need to worry about their expenses, and this can keep them up throughout the night.
Rich people may also have jobs with high pay but there is still the anxiety that comes from the thought of the possibility of getting laid off or fired from work.
Rich people have to deal with all these worries but wealthy people don’t have to.
Why? This is because for you to become truly wealthy, you will need some kind of financial independence. You must be free from thoughts of money problems.
The state of being wealthy can be determined according to the number of days that you can survive without worrying about the money coming in.
Again, being wealthy is not only about what your money can buy but more about your capacity to maintain your existence and your lifestyle without having to work at all.
Who Has More Money a Rich Person or a Wealthy Person?
A wealthy person can have more money because he/she has more sustainable wealthy that could last for many years in the form of investments which usually produce several streams of income.
But this is not always the case. A wealthy person can have more investments and have less cash but continuously makes money from those investments.
The main difference is that wealthy people have the knowledge of how to make more money while rich people only have money. A rich person can become rich if they focus their money on investing in assets that make them money.
For example, doctors belong to the rich category because they make lots of money. However, the moment a doctor stops working, he also stops making money.
When you have the know-how on making money, it will become possible for you to build more sustainable wealth.
Can You Be Broke Being Rich?
Yes, it is possible to be broke being rich and this can happen because of different reasons:
Lack of Direction or Vision
Without direction or a vision for life, money can own your emotions, thoughts, and life as a whole. This kind of mindset will then lead to an agitated mind, causing you to worry that whatever you earn will be taken or lost.
It doesn’t matter how many deals you close or how much money you have because it will never feel enough for you.
The healthy perspective when it comes to money is to remember that you are the one who owns the money, not the other way around. Respect money and everything it can do for you and you can expect it to respect you as well.
Focus on your family, church, people around you. Life is about people, not things.
Earning excess money before knowing where to put it
Building wealth requires training.
If you are prepared on how you can maintain your wealth and you don’t have the correct attitude on it, other aspects of your life will start falling apart.
You might end up burning your earnings faster than you expected.
Comparing yourself to other people
When you compare your success and wealth to other people, you are only wasting your time and resources.
Every time you do so, you feed all the energy you go into other people’s success while you deplete your own money mindset and wealth container.
You should learn how to cultivate objectivity. Your relationship with your money needs expert communication. If you constantly think that there is not enough money in your bank account, this is what exactly will happen.
Saying no to life outside your work
If you only work, you don’t fully live your life. The lack of community and connection is the perfect recipe for burnout, stress, and damaged relationships.
These are the things that are not good for your mind, your health, and your money since these can easily take control of your emotions and decisions.
They can make you broke even when you are rich.
How to Become Wealthy
There are several things you can do to become wealthy and sustain your lifestyle even without working:
Free yourself from debts.
Wealthy people know the disadvantages of having debts and the advantages of being free from debts. When they are debt-free, it means that they will also have more money that can go to their savings. If a wealthy person has more money, he can also invest more in his own business. This business can then serve as the wealthy person’s asset that can generate a passive income for him for the rest of his life.
Practice delayed gratification.
Delaying their gratification is one of the things that wealthy people believe in. Instead of going shopping, they delay it and invest their money so they can have everything they want in the future. This is what delayed gratification is all about.
Create streams of passive income.
Establishing your own business will mean that you will have a stream of passive income throughout your lifetime. You can choose where and when to work or what to work on. It is the real meaning of freedom and this is how a wealthy person thinks.
The secret on how to become wealthy is to copy the mindset instead of the lifestyle of wealthy people. After all, their mindset is what makes them wealthy in the first place.
When you have the correct mindset, you can have abundant riches and at the same time, live abundantly. You can do everything that gives you satisfaction, spend more quality time with family and friends, and still have the money and time to voluntarily help others.
How to Build Wealth
There are actually three simple steps that will help you build wealth. While these steps sound simple and are easy to understand, following them is actually a bit tricky.
To build wealth over time, you will basically need to do these three things, namely:
Before you start planning to invest or save, first of all, you must have a long-term and solid source of income that is enough to still have some left for you after you have covered your debts and necessities.
After you create an income that is sufficient for covering all of your basic needs, that is when you can come up with a proactive plan for your savings.
Once you are done setting aside some savings every month to reach your goal, you have to be a prudent investor.
Building wealth requires an exercise of discipline, patience, and diligence. This is a long game you have to play. Setting healthy habits on budgeting, saving, and spending early on can help ensure that things will be easier in the future.
Investing is one of the most extremely important components to build wealth. If you have the will to take on the risks associated with investing, you can improve the chances of making your money do the work on your behalf.
How to Become Rich Fast
The ways on how to become rich fast are not necessarily quick but you can expect them to help you earn abundant money:
Start a business
Having your own business is one of the best ways to become rich fast. For it to become successful, however, you must know how to enjoy whatever it is you are doing. You must also be serious with your business and be wise in managing your finances.
Invest in the stock market
Investing in the stock market has always been one of the best ways of getting rich quick. However, this is something that requires extra care. You must be wise in choosing your stocks and using your dividends that will be invested in additional stocks. Practicing care can help you accumulate a fortune. Even though there are instances when stocks become unstable, the moment your master the art and science of trading, it will be easier for you to identify the changes ahead of time.
Have some real estate investments
Land ownership is one of the oldest indications of wealth. Buying, developing, and selling properties is one of the sure ways to get rich fast.
Rent out your properties
One thing you will appreciate about owning rental properties is that you can still work on your 9 to 5 job and make extra income on the side. Landlords working full-time have more chances of enjoying an early retirement.
Create a new product
Designing a new product will give you intellectual property protection. You can then earn money from this new product through assignment or licensing. In licensing, you will sign the contract giving the licensee the rights to the patent. The licensee is the one who will copy, market, and sell your product. In an assignment, your ownership of the product will be permanently sold to an assignee.
Thanks to the internet, there are now plenty of ways to get rich fast. If you got something unique you like to share with other people, you can shoot a video of it and upload this to YouTube. Ads on YouTube can make you earn $2 for every 1,000 views. Once your YouTube channel becomes popular, you might even score some endorsement deals that can make you earn millions.
Choose tax-free investments and savings
While there are investments that require high taxes, there are also those that don’t charge taxes at all. These include pension savings, children’s bonus bonds, and ISA.
Getting rich fast still requires lots of hard work but everything will be worth it, especially when you finally see and experience the results.