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Finance Tid Bits

Being Rich vs. Being Wealthy

2nd July 2007

Did you know that being rich is not the same as being wealthy? We are so used to using the two words interchangeably probably because we believe both words refer to people with money, lots of money. The word rich is described as having much wealth, splendid, costly, elaborate, valuable, abundant and ample by the Concise Oxford Dictionary. It also defines the word wealth as riches, abundant, or profusion and an archaic welfare or prosperity. Wealthy however, is defined as having an abundance especially of money.

Finance Tid Bits People that are employed are rich. Why? Because we can afford expensive things and if we have the know how we can manage our personal finance well enough to have extra money to go on vacation or buy a boat. Notice how this fits with the words costly and elaborate used to describe the word rich in the definition I gave above. However from practical real life situations I have seen that although 'rich' people have money to spend on expensive items, if they were to stop working today how long do you think they can maintain their lifestyle? Wealthy people own not only properties (yes more than one house or condo) but also businesses, stocks, bonds and they have money, cash in abundance. If a wealthy person stops working today how long do you reckon they can maintain their lifestyle?

Can you see the difference already between the rich and the wealthy? Rich people work for their money but wealthy people have their money work for them. Look at Britney Spears for example in comparison with Bill Gates. If Britney were to stop working what do you think would happen assuming she hasn't made any investments with her millions? Whereas we all know Mr. Bill Gates doesn't have to work because he makes money 24hrs a day without necessarily lifting a finger. Britney is rich but Bill is wealthy, do you see the difference?

The rich are on the left side of the cashflow quadrant and the wealthy are on the right side. So would you prefer to be rich or to be wealthy?

"Do today what you want for your tomorrows. " - Robert Kiyosaki

Comments (5):

Janet Says: Given the options I'd rather be wealthy | 07.2.2007 |

Phil Says: Yes there is a difference between rich and wealthy. Rich people don't always become wealthy and I agree if Britney quit the music business she'd be in trouble hence the comback by the way | 07.2.2007 |

Tim Says: Not only Britney even most sports personalities have to work for a while before really becoming wealthy | 07.2.2007 |

Heather Says: I was not aware that there was such a difference between being rich and wealthy. You are right by saying most people don't know the difference | 07.2.2007 |

Vivian Says: Interesting post | 07.2.2007 |

 

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