Being Rich vs Being Wealthy

Isn’t the idea of being rich and being wealthy synonymous to each other? Or am I trying to convolute it?

Being rich could possibly a temporal thing if—

1. You may be earning a higher income than your peers or have more money in your bank account as a head start.

2. You may have a fancier car or lifestyle than your peers.

3. You may be the one footing the bills most of the time because of (reason 1).

4. You may have more luxurious items—bags, watches than your peers.

5. You may have an exclusive club membership before your peers

— but you don’t have a long term game plan to turn that riches into wealth.

Plus, if you always have a desire to keep up with the appearances or flaunt what you have in front of your peers or on social media, it is likely that you end up spending what you earn with minimal savings, or worse, overspend and live on credit monthly. In short, to keep up with the appearances of being rich and maintaining “rich”, you may end up racking a lot of debts and have no emergency cash for your future.

I often hear people tell me that they have no money to plan for their future but I see them driving fancy cars which are depreciating assets, year on year. I see them dining at fancy restaurants and going on a rampage shopping on monthly deals (ie 9/9 sales, 10/10 sale).

While it is fun to do that occasional splurge, it is alarming if what is supposed to be “occasional“ becomes frequent or your lifestyle. When you are “rich”, you will find that you will suddenly be surrounded by people who will help you spend it because they perceive that generosity of yours will also be extended to them, since you are rich, anyway.

Which is why being wealthy is better than being rich.

Being rich is a state. Being wealthy is a realistic and sustainable lifestyle.

1. The Wealthy have wealthy mindsets

Being wealthy first starts with the mindset. It doesn’t matter if you have had a strong headstart or not— as long as you have a wealthy mindset, and believe that your money today should grow, you will always be finding ways to grow your wealth build your income sources.

2. The Wealthy set up action plans

People who are wealthy are intentional people, they are mindful of their spendings and keep a tight budget control. (note: this Is not to be confused with being stingy, but they are mindful that they do not end up mindlessly splurging). They also do not spend to impress others and live well below their means, leaving a huge buffer for excess— which they take steps to grow:

Here are some actions they take to be wealthy: a. spend lesser than they earn,

b. place their money into assets that grow money (invest),

c. take on only good debts and

d. always pay up their credit card and bills in full.

3. The Wealthy understand the rule of delayed gratification

They clearly understand what are needs and wants and do not splurge on the unnecessary. They understand that by parking their funds aside for a longer term, they will harvest greater gains rather than meeting their short term desires like getting a car or a luxury bag. They understand that having more money in the future will be able to “buy“ more time for them and would delay gratifying their present wants.

4. The Wealthy have clear goals and milestones

They are not on the look out for get rich quick methods and understand that growing wealth is not a short term goal; it is a longer term marathon. They also diversify risks instead of placing their entire wealth into one basket.

They stock take and review their positions and risks and usually partner with a professional to do so to ensure they are on track.

5. The Wealthy has “abundance” mentality

Most of the wealthy wants to give back to society and do not hold back on their giving. They truly believe that their money can empower others to be better and have a desire to place a portion of their wealth to enable others to have a better hold in life. After all, we cannot take our riches with us when we die but we can definitely impact the world to be a better one in our living and when we pass on!

Being rich and being wealthy is not the same and I hope we know the paths which we want to choose— there is a simple beauty in shoring up reserves for our future or for in times of financial “famine”. It is very easy to lose our focus when we are in the fast paced social media driven world where materialism is constantly flashing herself in our faces. However, I believe, if we start adopting the wealthy mindset, we will be future ready.

Do you plan on getting rich or wealthy?