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10 Differences Between Being Rich And Being Wealthy

Filed in Education by on December 8, 2020

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10 Differences Between Being Rich And Being Wealthy

Differences Between Rich And Wealthy: There are marked differences between the words rich and wealthy, but not many people know. Because both words often imply affluence, people tend to ignore the nuances that differentiate both terms.

These differences are mainly subtle and lean towards concepts such as fulfillment, contentment and economic stability. It is worth noting that it is possible to be wealthy without being rich and also possible to be rich without being wealthy.

10 Differences Between Being Rich And Being Wealthy

Rich and Wealthy

It seems to me that there is a big difference between being rich and being wealthy. When I think about someone who is rich, I think about someone with a lot of money. And I typically think about someone who is quite showy with their money. They drive fancy cars and live in a fancy house. They wear fancy clothes and eat at fancy restaurants.

Rich people come into their money in a number of ways. They may inherit it. They may win the lottery. They may earn it in a few short years as a professional ball player or entertainer.

Or they may invent a new mousetrap that is worth millions of dollars. Or they may simply earn it over many years as a professional or a business owner.

10 Differences Between Being Rich And Being Wealthy

1. Living within one’s means: Wealth is simply defined as the accumulation of assets. However, wealthy individuals are those who have minute debt, make smart investments, and live well within their means. It is a possibility for a person to be rich and yet try too hard to live above their means, making little or no investments and have a shitload of debt.

2. Appearances: A defining feature of wealthy people is that they have a huge net worth. Often times, people may not recognize them as wealthy owing to the fact that they may nor live flashy lifestyles. However, their wealth is attested to in what they are worth, not in how much people ‘think’ they are worth.

3. The Income Determinant: To be rich, one only needs to have a high income. Whether or not this will be translated into wealth is entirely up to the individual. This is because high income for most people necessitates high spending. And where expenditure evens out income, the individual is technically at ground zero.

4. Savings: Anyone who wishes to be financially secure must save. There are times when one may need money for urgent reasons, or may need to take advantage of an opening to invest or buy shares. According to some sources, wealthy persons try to save at least 15% of their income.

5. Debt: As earlier hinted at, debt plays a significant role in understanding who is wealthy and who is not. A rich person may have a lot of money coming into his/her account and still be knee-deep in debt.

6. Possibility of indigence: With an understanding of the workings of wealth, a wealthy man is less likely to fall into poverty because he/she is loaded with savings, low on debt, and has steady, profitable investments. A rich person on the other hand may lead an exorbitantly extravagant lifestyle, be high on debt, with no investments at all.

7. Happiness: Most wealthy people prioritize the sustenance and maintenance of their happiness and use that as a catalyst to drive money-making and money-saving. Rich people often prioritize show and ostentation.

8. Responsibility: Responsible spenders are those who spend with a sense of responsibility considering more factors than the show or immediate gratification. With this attitude, one is unlikely to fall into huge debt or spend lavishly without making proper investments.

9. Eggs in one basket: Unwise rich folks may keep all their eggs in one basket. One that basket is smashed, their source of riches dwindles and they find themselves struggling to live even fairly. Wealthy individuals know how to spread the sources of their earnings – they know how to prioritize investments and other business activities that guarantee financial security.

10. Retirement plan: Men who understand the tenets of wealth make plans for when they can no longer work actively. When a person retires, he/she no longer has that steady income that a regular job or career ensures. A wealthy person will have enough saved for this period.

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