What is the difference between being rich and being wealthy? The definitions completely fall on the individuals’ point of view. But for some context, I will see what the internet has to say.
Mr. Housel says, “Being rich is having a high current income, and being wealthy is having the freedom to choose not to spend money”.
Personally, I think that being rich is having a high level of discretionary income, whether that is from being very frugal or from making large amounts of money. I believe that being wealthy is being able to buy one’s freedom and also being able to buy someone else’s freedom.
Buying someone’s freedom is having the ability to choose how one spends their time. For example, my son may have to work a 9 to 5 job someday. Let’s pretend that the work environment is toxic or he has a horrible boss. If I am not wealthy, then my son has very limited options. Chances are he will have to stay at his job until it improves or he would need to save at least 6 months’ salary to be able to transition into another job. If I am wealthy there are a plethora of options, including; I can allow him to live rent-free in one of my homes, he can come work with me at one of my businesses, or I can pay for him to go back to school.
When I was younger, I used to think that making it on your own meant that you were the best of the best. That you can endure any kind of mistreatment or abuse. It meant that you were stronger than all the others because you not only survived but you excelled. But in the end, that was all hogwash. Kris and I made it all by ourselves because our family had no resources. We refused to let the world destroy us. This leads to a large amount of “life stress” being placed upon us. Life stressors include family stress, relationship stress, work stress, and random stress. When we are wealthy, we can assist all of our family members throughout the different stressors of life.
Some people have no family and have to go through life alone, they have no other options. As we go through our relationship and financial quests, we have to choose to be rich or wealthy. Being rich is the easier of the two. You basically wake up and think about what will make you happy or give you enjoyment. Being wealthy is basically thinking of what you can do to make others’ lives less complicated. Kris and I are choosing to be wealthy. We were able to overcome most of the life stressors. However, we want to assist our children or grandchildren throughout the process of life. Just because we made it through the rigors of life doesn’t mean that we need our family to repeat the process. Some may feel that will make the next generation soft. That is a risk that we are willing to take.
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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