Rich vs. Wealthy – is it the same thing? Well, according to Robert Kiyosaki, “there is a difference between the two: The rich have lots of money but the wealthy don’t worry about money.”
Those most likely that fall into the first category. May be rich in the sense that their salaries are in the higher economic range, however, because of monthly expenses (houses, cars, student loan debt, private school tuition, household overheads, etc.) and sometimes poor decisions, they have a tough time accumulating any real wealth.
Being wealthy ultimately has more to do with financial freedom. It means you’re not living hand to mouth. 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 personally don’t care about being seen as rich – I don’t need the fancy house or cars. I just want to know that I can give up some or all work whenever I’d like to, and spend that time with my family without any financial pressure. I remember reading somewhere that “wealth is measured in time, not dollars” – and I believe that to be totally true.
So, how do we get there? There’s no one right path as some would have you believe. There’s too much unpredictability out there for anyone to be able to project things out perfectly over the next 20-30 years. As I’ve learned, there are things beyond our control which come into play, like when you started saving and when you plan on retiring.
The main difference is knowledge, wealthy people know how to make money and rich people just have money. Rich people are motivated by money, wealthy people are motivated by their dreams and passions, once rich people stop working they tend not to have as much.
What I have learnt along the way is- those who work hard towards their dreams and passions and create a passive income over time and use the knowledge they have gained, will be wealthy.