Rich vs. Wealthy: The Reality You Need To Know!

Have you ever stopped to consider if there's a difference between being rich vs wealthy?

There is a vast difference between being wealthy and being rich. 

A difference most people never get to truly understand this. 

To have the freedom you want and to like the life you desire you must be wealthy!

Click here to watch this video to dive into the difference between the two.

We tend to think “wealthy” is what we see because that’s the information we have in front of us. 

We can’t see people’s investment accounts or debt statements. 

So, we rely on outward appearances to gauge what we have been told is financial success – stuff. 

Cars, homes, clothes, holidays, Instagram photos.

The problem is that true wealth cannot be captured in an Instagram post. 

WHAT IS WEALTH?

Wealth is what you do not see.

Wealth is:

•  Having a cash safety net so you can relax knowing when a to-be-expected unexpected event happens - you will be ok.

• Having a proven investment strategy working away for you.

• Wealth is seeing your net worth grow consistently month after month - and you knowing with certainty you have your financial future secured.

• Wealthy is knowing that if something were to happen to you or your ability to earn you and those that depend on your earnings would be safe and secure.

• Wealthy is being a SWAN - sleep well at night - no longer worrying about your financial future.

Wealth is a measure of the wealth generating resources

you have at your disposal.

Being wealthy is a reflection of your ability to sustain a desired lifestyle without you having to work actively for income - because your investments pay for your lifestyle.

WEALTH is also:

• the nice cars not purchased; 
• the diamonds not bought; 
• the watches not worn; 
• The decorators dream home not created;
• the designer clothes forgone; 
• The glitzy holiday deferred; …
• And the No’s that needed to be said to others.

Wealth is made up of financial assets that haven’t yet been converted into the stuff you see. 

WHAT IS RICH?

Rich on the other hand is about moment by moment consumption experiences - outward displays of the availability of money to buy something - an outfit, a meal at a specific restaurant, a car - but seeing those things says nothing about the source of that money. 

Rich just means you have some money to spend now - it says nothing about your sustained ability to have money and financial security. 

It says nothing about where that money came from. It could be earned, it could be borrowed, it could be stolen, it could be gifted, it could be a one off windfall.

For example… 

You can use a credit card to rent a Ferrari for an hour and drive it around whilst taking a bunch of photos …

You can buy furniture on a store card and pay for it over and over and over… 

You can go on a holiday and put it all on a credit card… and splash your “richness” all over instagram… 

…but that definitely isn’t wealthy to now have to pay back that debt with loads of interest piled on.

The same goes for the house you live in, the school your kids go to, the phone you have …

These things might look rich for a moment, you may have even though these things meant other people were wealthy when you saw them - but it isn’t wealth. 

SPENDING MONEY DOES NOT MEAN YOU ARE WEALTHY

What people spend money on does NOT define their wealth 

nor does it define their worth.

Most people will tell you that they want to be a millionaire – that is what drives the craziness of lotteries and get rich quick schemes – but what people actually mean is that they want to spend $1 million. 

They want to feel rich and they equate spending money with being rich.

Think about it… 

If you ask someone - “what would you do if they won the lottery?” most people will list a whole lot of things they will spend the money on.

This is the opposite of being financially free.

How many sports stars and musicians do we hear about every day who go bust because they spent their income trying to look rich rather than investing to be wealthy?

Most people are not prepared to do what it takes to be wealthy. 

People say they want freedom and flexibility… but sadly the belief is ingrained in us that to have money is to spend money.

Yes - I’ll say that again. 

Most people say they want money to spend it. 

Money burns a hole in our pockets!

To create real wealth so you can have peace of mind, financial security now and in your future, and have assets that then buy the riches in life for you, you must learn how to put out those fires in your pocket and learn to keep some of the money you make and learn how to convert that money into assets that will grow and earn for you. 

Here’s to you having an abundance of wealth and plenty of rich moments bought for you in the most magical sustainable way by your assets.

Big love

Ann