The Diffrence Between Been Rich And Being waelthy

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THE DIFFERENCE BETWEEN BEING RICH AND BEING WEALTHY

written by : Prince Adeyemi Adedayo Oriyomi

Being rich and being wealthy seems to be synonymous as both involves
having a lot of money. However, there’s a big difference between the
two. If you notice, there are a lot of so-called ‘get-rich-quick’ schemes but there are no ‘get-wealthy-quick’ schemes.

The main difference between being rich and being wealthy is knowledge.
Wealthy people know how to make money while rich people only have money.
Rich people are motivated by money but wealthy people are motivated by
their dreams, purpose and passion.
 Most rich people make a lot of money
with their paychecks but the moment they stop working, they also stop
making money.

Being wealthy is defined as that status of an
individual’s existing financial resources that supports his or her way
of living for a longer duration, even if he or she does not physically
work to generate a recurring income.

For example, if a person’s
monthly expenses amount to Php 25,000 and he only have Php 100,000 in
his savings, his wealth is approximately four months or 120 days.
Wealth, therefore, is measured in time, and not in amount of money that
you have. It suffices to say that wealth is dependent not only to the
amount of income but also to amount of expenses one makes.

Wealthy
people can build sustainable wealth that can last for years through
asset investments producing multiple streams of income.
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. It makes sense that if you did not work hard to earn and build it,
then it can just easily pass on 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 are not.

Since wealth is
not an overtime success, one must learn to distinguish an asset from a
liability. Focus on creating and buying income-producing assets to generate a passive or a portfolio income.

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