Photo by Sharon McCutcheon on Unsplash

Do you want to be rich, or do you want to be wealthy?

It is common to hear people tell you that they are going to be rich. It is nearly everyone’s dream to have lots of money, so they never have to think about finances again and can do whatever they want. The question then is, do you want to be rich, or do you want to be wealthy?

If you are asking yourself what the difference is, then this will be the article of the day for you.

When you think about what being rich means to you, undoubtedly you think of having enough money to swim in, like Scrooge McDuck or having a massive house with a garage full of rare and exotic cars like all the youtube stars seem to advertise. How about flying all over the world in your private jet so you can fulfill all of your wanderlust?

While these images are very appealing, merely having money does not give you the peace and comfort that many people expect and associate with being rich. The rich are often just as stressed about their money as the poor. But why is that? That’s what we are all here to figure out.

When you evaluate the spending habits of individuals, you will find that most people spend the same percentage of their income regardless of how much money they make. The reason for this is because of what is known as lifestyle inflation. As your income increases, so do your expenses. When you may have been excited to go to McDonald’s for a $10 meal, you slowly work your way up to going out to Ruth’s Chris Steakhouse for a much more expensive meal. This is why it is easy to be rich but not wealthy.

Being rich is a physical state of making a lot of money; being wealthy is a mindset.

When you think of someone wealthy, you are likely to think of people like Warren Buffet Jeff Bezos or Bill Gates, and you would be right about them being wealthy. All three of these individuals were incredibly successful in life because they had a wealthy mindset when it comes to money.

It is no secret that they all drove your average Toyota or Honda type vehicles until after they were billionaires and the cars died, or their spouse demanded they upgrade their vehicle. Now, this may baffle you because what kind of self-respecting multi-millionaire would drive a 15 or 20-year-old average sedan instead of rolling around in a Rolls Royce, Bentley, or Ferrari? They kept driving their car because they were comfortable with the car, and it got them from Point A to Point B without giving them problems.

They were able to better utilize their money on appreciating assets instead of depreciating liabilities. You see, the key to having a wealthy mindset is seeing your money as a tool for you to use to achieve your goals, not as the end goal. When you are building your wealth, you are typically focused on concentrating on the most valuable use of your time and resources. This means that you need to make sure your resources are working for you while you are doing what you need to do to leverage your time in the most productive way possible.

Not only will you look at your money as a resource, but you will also not feel the need to purchase things to impress people you don’t even like to begin with. You evaluate your success or failure based on your own goals and ambitions, and it doesn’t matter what anyone else thinks because they are living their own life, and it has nothing to do with yours.

As you can see, being wealthy has nothing to do with how much money you have in the bank. It is all about the mindset you have around your life and your money. When you stop living for everyone else, you begin to live for yourself, and that’s when you find real wealth.

Let me know how you see the wealth mindset influencing your life in the comment section below.

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John Allen

John Allen

Bringing clarity and understanding to financial and business topics.

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