What’s the real difference between being rich and being wealthy? Some people believe there is no difference. I’m not one of those people. I strongly believe that you can be rich but not wealthy, that you can be wealthy but broke, and you can be both at the same time. So, what makes you wealthy and what makes your rich?
If you have a high-paying job that allows you to live a luxurious lifestyle full of fast cars, high-limit credit cards, and expensive items, then you’re probably rich. What does this cost you, though? You’re tied to your job. Your lifestyle is dependent on you keeping it. If something happens and you’re not able to work, then you’re going to fall and the higher up you are, the harder you fall.
This is commonly known as being in the rat race. You might have heard this term before but not really understood what it meant. Being in the rat race means that you follow the same path every day, and you get the same rewards every day, but you never advance past that.
You might have also heard it referred to as living paycheck to paycheck. Sure, you might be making enough money that you can put some into savings for a cushion or for emergencies, but you’re still relying on that paycheck every month.
Some people don’t mind this lifestyle. They’re comfortable with it, and they feel a certain sense of security, knowing how much they’re getting paid and when. There’s nothing wrong with this, but it doesn’t make you wealthy. You’re just rich.
So now we know that a high-paying job means that you’re rich but might not necessarily mean that you’re wealthy. Well then, what does make someone wealthy? Wealth is commonly associated with free time. If you can go on vacation at the end of every month, if you’re able to take off on a Wednesday afternoon, if you’re able to set your own hours… then you’re considered wealthy.
Even if you’re not making a lot of money, having free time means that you have the ability to set your own schedule and work as much as you want for however much you want. You’re not part of the rat race because you’re determining how much money you earn by how much work you put in each day.
Along this same line of thinking, that means you can be wealthy but broke. Imagine that you have all the free time you want, so you can focus your time on projects that will generate you passive income. Passive income is revenue that you generate without having to work. So, with all that free time, you’re wealthy, but you may not be living the lifestyle that you want. You might be juggling bills and trying to figure out how to pay everything on time. You can be wealthy and not have a lot of money. Wealthy is a frame of mind. It’s the belief that you directly benefit from how much work you put into something.
Rich AND Wealthy
A lot of people want to be both rich AND wealthy. They want to have the free time they feel like they deserve but they also want to live the lifestyle of their dreams. They don’t want to worry about money, but they don’t want to be stuck in the rat race either, always living paycheck to paycheck.
This is a perfectly normal way to feel and it’s very achievable if you have the right motivation and the right attitude. So how do you go about becoming rich and wealthy?
The first step is breaking out of the rat race. You don’t want to be stuck working a dead in job that doesn’t allow for growth. There are many ways to go about doing this.
One way to get out of the rat race is to start investing your money. Put a little back each month from every pay check and invest in things that you believe in. Make sure you do your research beforehand because you don’t want to throw money away.
Making a good investment can generate passive income. Just imagine the people who invested in Microsoft or Google or any of the big-name brands back when they were still small companies. Once you start making money from your investments, it’s work that you no longer have to do. You’re generating income simply because of a wise business decision you made.
Running Your Own Business
If you’re an entrepreneur, you’ve probably considered starting your own business. Depending on what you decide to do, this can be a great way to make money and set your own schedule. Just remember that when you own your own business, you’re in charge of everything.
You set the hours, so you need to be willing to put in the work to generate the income. Of course, if you play your cards right and make good business decisions, and have a little luck on your side, the end goal would be to retire and have someone run the business for you, generating your passive income but allowing you all the free time you want.
Whatever you decide to do with your life, remember that you get what you put into things. If you fill your life with positivity and ambition, you’re going to generate a lot more of everything, including income, then if you settle for mediocrity and negative thinking. You can be rich, wealthy, or both if you put your mind to it, and settle for nothing less than the best!