In the past, I have often pondered whether there is a difference between being wealthy and rich. I would like to know if there any difference or both the words are the same. I would also like to find out how a person can become wealthy. Is wealthy and rich the same?
What is the difference between rich and wealthy?
The difference between a rich and wealthy person is that a rich person spends a lot of money and a wealthy person is a rich person who has sustainable wealth. Based on Robert Kiyosaki’s statement, the rich have lots of money, but the wealthy don’t worry about money.
The main difference between rich and wealthy is the degree of security of wealth over a long time. Wealthy people have significantly more revenue than expenses over a long period of time. Rich people can become wealthy people, but they can lose money in the next several years because of high expenses.
Typically a person who has a large amount of money is considered rich. The person will openly show people that he has plenty of money. The rich persons drive expensive luxury cars and live in a luxurious house in a posh area. They wear costly designer clothes and eat out at top-rated expensive restaurants.
There are many ways rich people make their money. Some of them inherit it, while others may become rich by winning a lottery. Some people become rich working for only a few years as a professional entertainer, athlete, baseball, basketball, or football player. In some cases, they may invest a new product like a mousetrap, and this invention is worth several million dollars. In many other cases, people become rich working for several decades as a business owner or a trained professional.
Wealth is measured in time, not dollars.
Yet this description is also partially applicable to a wealthy person. Finance experts believe that the main difference between rich and wealthy is how the money which a person has will last. In some cases, the money will last only till the person can continue earning. In other cases, the person will have enough wealth to pass it on to their future generations. The main difference between a wealthy individual and a rich person is that the wealthy person has wealth, which is sustainable. An alternative way of describing it is that a wealthy person is likely to remain wealthy for the rest of his or her life, while only the rich will have plenty of money for a few years, a decade, and then will not have enough money.
One of the easiest ways to understand wealth is by considering the history of wealthy families. Some of the most famous wealthy families in the United States are the Campbells, Rockefellers, and Carnegie’s. It is noticed that several generations of family members are extremely wealthy. Many people would like to find out how these wealthy families differ from the professional athletes or lottery winners, who make a huge amount of money for a short time and then have nothing. The main difference between being rich and wealthy is knowledge. Wealthy people know they can make money and also use their money to make money.
On the other hand, rich people only have a large amount of money because of their luck or similar factors. Once a person knows the right way to make money, their wealth is sustainable. They will continue making money. Even if they face problems or are unlucky, they will learn to deal with them. The wealthy individual will overcome these problems to make money. One of the best examples is Donald Trump, who was deeply in debt many years ago. Yet, he did not give up and did not change his lifestyle. This is mainly because Donald Trump understands how he can make money and is a wealthy person.
Several historical figures became wealthy because of their knowledge and realized that knowledge was more valuable than money. The most famous example is King Solomon, the king of all Israelites, extremely wealthy and considered very wise. When he became king for the first time, the prophet had asked Solomon what gift he would like from god. Solomon asked for the gift of wisdom. In his writings, Solomon mentions that knowledge and wisdom are the most valuable gifts a person can get from God, and these created his great wealth.
Conclusion
Knowledge and wisdom can make any person who wishes to become wealthy get what he desires. Financial experts advise people to learn about creating sustainable wealth. Once the individual has acquired the knowledge, he can formulate the right strategy and help a coach if required. Hence it is important to acquire the relevant knowledge. Some people are trained by their parents, especially mothers, to acquire knowledge from multiple sources, motivating them to teach others.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com