Yes, rich people, have a lot of money, but wealthy people have the security that comes with knowing how to manage their wealth, no matter how much money they have.
The rich have lots of money but the wealthy don't worry about money. Wealthy people understand the principle and purpose of money and manage it often times better than rich people, they build a legacy, thus increasing their wealth. Being rich can increase your pocket book, but wealth can increase your impact.
Being wealthy ultimately has more to do with financial freedom. It means you’re not living paycheck to paycheck. It means you’ve either saved enough that you don’t need to work every day to sustain your lifestyle or you’ve built up enough residual, passive income sources that you’re getting paid in your sleep. I remember reading somewhere that “wealth is measured in time, not dollars” – and I believe that to be totally true. What a truth statement, to not only believe in but to adhere to as well.
Building Wealth and Knowledge
Have you ever noticed, there are a lot of so-called ‘get-rich-quick’ schemes but there are no ‘get-wealthy-quick’ schemes, why?
Because the main difference between being rich and being wealthy is knowledge. You can’t gain knowledge quickly; it comes over time. Rich people are motivated by money but wealthy people are motivated by their dreams, purposes and priorities.
Wealthy people can build sustainable wealth that can last for years through asset investments producing multiple streams of income, no wonder it's called old money.
Rich people, on the other hand, may get money in an instant such as inheritance or winning a lottery. However, because of lack of proper mindset and poor money management skills, all of it can be lost in a short period of time. In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years, according to the National Endowment for Financial Education.
It makes sense that if you did not work hard to earn and build it, then it can just easily pass from your hands and splurge it on things which are not important. Some of these people are more commonly known as ‘one day millionaires’. Now they have it, the next time they don’t.
Wealthy and rich people both may experience downfalls and failures in their ventures. However, because wealthy people are knowledgeable when it comes to money matters, they can start all over again and build wealth over time. In contrast, rich people may find it hard to attain what he or she previously has. In essence, wealthy people are financially free while rich people historically are not.
Despite the fact that there is a considerable number of well-off people out there; only a handful
of these individuals are actually wealthy by definition. On the one hand being rich means just having money in abundance, while on the other hand being wealthy is defined as having enough money to purchase everything you want today as well as in the future and still have a great deal of residual (old money).
Being wealthy is not just about being rich in the pocket, but also about being rich in the mind.