DIFFERENCES BETWEEN THE RICH AND THE WEALTHY

DIFFERENCES BETWEEN THE RICH AND THE WEALTHY
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DIFFERENCES BETWEEN THE RICH AND THE WEALTHY

We frequently believe that being rich and being wealthy are synonymous; however, this is not the case. Despite the fact that they are related, one is superior to the other. What’s the distinction between wealth and riches?

 

“Riches are a large amount of money or valuable possessions.”- The Cambridge Dictionary

 

“Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.”– Investopedia

 

What does it mean to be Rich?

Being rich involves having a lot of money, whether in the form of a salary or income, having expensive cars, even if they are official cars, a fanciful house, even if it is rented, and living an expensive lifestyle. Riches do not hide; they are visible, which is why it is very easy to identify a wealthy individual simply by observing what they wear, the work they do, their family, and their general way of life. Being rich does not always imply having large investments; rather, it usually implies having a steady source of large income that comes in on a weekly or monthly basis. This is why medical doctors, civil engineers, estate surveyors, pilots, bankers, politicians, and so on can be considered wealthy because of the nature of their jobs, which places them in the category of high-income earners.

 

Rich people usually have a lot of responsibilities to meet, so what they earn is usually just enough to meet these responsibilities with no extra leftover for savings or investments. They had to keep working in order to make ends meet; as long as they have jobs and earn money, they are Rich. Some people usually only have one source of income, which is their job, and this does not allow them time to look for other things to do on the side.

Others may even work multiple jobs to support their extravagant lifestyle and the status they may hold or have created in society.

 

The Rich are the most financially stressed people in the world; they are constantly working and looking for ways to earn more money, and they rarely have time to take a break and relax with their families because that is a luxury they cannot afford. The old saying “time is money” is more true for the Rich because they have a lot of bills, debt, and loans to pay, a lot of expectations to meet, and they are driven by the fear of failing to meet the standard they have set for themselves.

 

They belong to a competitive group, and it is these competitions that drive them. Most rich people are more concerned with their social status than with their health and family; they are workaholics who frequently spend more than they earn. They will not want to disappoint their family or be perceived as failing to meet their expectations. A rich person can become poor overnight due to job loss; this is the true meaning of riches having wings.

 

What does it mean to be Wealthy?

Being wealthy implies much more than having a lot of money; it involves having a good net worth, which is what remains after paying bills and other expenses. Wealth is not as visible as riches; a wealthy person may not own expensive cars, live in a lavish home, or lead an extravagant lifestyle. They may not even work in a bank or be part of a group of competitors who work to impress others; they may not be in debt or have taken out loans; their children may not attend the best schools in town, and they may not wear expensive clothes or have a large sum of money in the bank. Wealth is not showy.

A wealthy person is one who is able to survive and live comfortably even when they are out of work; the wealthy have their money working for them; they do not work for money. They do not believe in taking out loans to maintain a standard of living; instead, they believe in living within their means or below in order to save and invest. They are typically found in the business sector. Some of them have regular jobs as well as investments in various organizations; while they work, they also save and invest. They are able to devote time to their families without worrying about how the bills will be paid.

Most wealthy people begin as regular workers, but over time they are able to save enough money to invest because they are wise enough to live below their means and plan for the future.

 

The following features differentiate the Wealthy from the Rich;

      While the Rich spend all or most of their earnings, the Wealthy save a percentage of their earnings, regardless of how little they earn.

      While the Rich tend to live above their means and take out loans against future earnings, the Wealthy tend to live below their means and avoid taking out loans as much as possible.

      The Rich are more concerned with spending and acquiring flashy items to show off, whereas the Wealthy are more concerned with looking for investment opportunities and investing their savings.

      Both the Rich and the Wealthy plan, but while the rich plan to acquire the latest pieces of jewelry, cars, or other flashy items, the wealthy plan to save and invest more.

      The Wealthy believe in delayed gratification more than the poor.

 

“The real measure of our wealth is how much we’d be worth if we lost all our money.”– John Henry Jowett

 

Wealth is really much more than riches, so would you rather be wealthy or rich?

 

 

Sources 

https://passiveincomemd.com/the-difference-between-being-rich-vs-wealthy/

https://www.clevergirlfinance.com/blog/rich-vs-wealthy/

 

Author : Amiakhor Ejaeta
Degree :
Major : Accounting
Country : Nigeria
Language : English

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