There are a lot of misconceptions about the terms ‘Rich’ and ‘Wealthy .

Many people use both words interchangeably, but they have different meanings.

What does it mean to Rich? What does it mean to be Wealthy? Does being Rich equate to being Wealthy?

Let’s RANT!

Riches or being Rich (financially) means to have a lot of money, yes! You heard that right — when you have so much money, and you spend it extravagantly and later go broke then, you are considered being Rich.

A sneak peek into the story of an ex-athlete who, at the age of 25, was earning a huge amount of money and spends it extravagantly with his friends and family.

The ex-athlete was living in a rented mansion where he paid an outrageous amount, drove expensive cars, and was the life of the party during his prime.

A few years after the mega-deal he signed, he sustained a life-threatening injury, which made him stop playing, and the club, after being supportive, had to let him go.

Now, the ex-athlete was undoubtedly rich and not wealthy because he was living paycheck to paycheck.

Being Wealthy comes with an understanding of financial freedom — it means you earn, you save, and invest to keep amassing money.

Being Wealthy doesn’t mean you are living a frugal life, but it means having a scale of preference on what you need badly and what you do not need.

A typical story of a wealthy person is Warren Buffet, who many know as the frugal Billionaire.

Warren Buffet has been living in the house he bought in Nebraska since 1958.

Warren Buffet is still driving his old car, and he was against the purchase of a private jet until he needed it so badly and was left with no other option than to get one.

Now, don’t get this twisted; being Wealthy doesn’t mean not getting new things but using your money to acquire assets and not liabilities.

Jeff Bezos and Elon Musk are two Billionaires that are living big, and yes, they are wealthy because they are investing heavily in their businesses.

Today, Amazon is one of the leading shopping platforms in the world, and Tesla is recognized as an electric vehicle company and is making huge sales.

According to Robert Kiyosaki, Rich people have money, and Wealthy people know how to create money.

So, the basic difference between the Rich and The Wealthy is the mindset!

The rich are only rich for a certain period, and afterward, they go broke, and not many recover while the wealthy remain wealthy forever because they keep amassing wealth.

The rich work for money, and after they reach the retirement age, they go broke while money works for the wealthy — they make money even while sleeping.

Rich people buy both the relevant and irrelevant things just to appear rich, while wealthy people have a scale of preference they follow; they only buy relevant things.

People only become rich when they earn a huge amount of money, while a small earner can become wealthy with time and financial education.

Anyone can be rich irrespective of age, gender, nationality, etc., but it takes only a financially literate person to be wealthy.

Final Thoughts

Money is important in life as you need it for everything and even to make more money.

Money needs to be studied, and doesn’t like an extravagant spender, nor does it like a frugal person.

Money loves a financially educated person to put it to work and keep multiplying it, and that is why money works for the wealthy only.

References

https://themillennialmoneywoman.com/rich-vs-wealthy/#:~:text=Being%20rich%20has%20to%20do,things%20you%20want%20to%20do