Table of Contents
What is it to Be Rich?
To be rich is to have enough money to afford the basics of life without struggling. In addition, a rich person also has money left over for a few luxuries. A rich person has more money than his immediate needs and enjoys spending h time and money on the finer things in life.
Being rich is the foundation for creating wealth. A culture of investing builds up into a portfolio of passive income, and children born in such a family can build on it, thereby becoming wealthy.
Rich people have to work very hard in order to maintain their lifestyle. They hold regular jobs or get physically involved in their businesses. To be rich, they have to borrow in order to invest and get more money; hence debt to them is unavoidable. They are often servicing loans or mortgages.
These people are great spenders and tend to buy things based on whether they want them, without other considerations.
Rich people don’t necessarily give. In fact, many do not donate at all. However, they do enjoy having money and possessions which they have worked hard to acquire.
What is it to Be Wealthy?
A wealthy person is one who not only has money but also many assets that earn him passive income, and can be converted into money should he wish to do so. He is also in full control of his debts if he has any. Most of the time, they pay their loans regularly rather than having them accumulate.
Having money alone does not make someone wealthy. True wealth is about controlling your resources and being in control of your financial destiny. Wealthy people enjoy freedom, security, and luxury. Although wealthy people can afford anything they want, they do not spend anyhow.
They only spend after careful thought, and that is how they are able to continue building their wealth.
They do not necessarily care for others’ welfare. In fact, some can be very selfish and insensitive to the needs of others around them.
However, we should always avoid generalizations. Many wealthy people do not hoard wealth; they use it to provide for the needy. In this case, the wealth of others is an economic resource that benefits society at large.
For example, the Rockefeller Foundation was started by a wealthy man by the name of John D. Rockefeller to provide for the needs of the world, such as health systematic way.
Difference Between Rich and Wealthy
A rich person is the one who has a lot of money which comes from his hard work. His income is actively earned either through a regular job, or from entrepreneurial activities. He uses this income to invest in pursuit of wealth, to repay debts, and to make his lifestyle better.
A wealthy person is one who owns huge properties and other investments and earns his income passively. Wealthy people view money as a means for them to pursue more wealth. They are always looking for opportunities to invest.
Comparison Between Rich and Wealthy
|Parameter of Comparison||Rich||Wealthy|
|Perspective||View money as a means for meeting needs and wants.||View money as a means of making more money.|
|Debt||Mostly have accumulated debt or are servicing some.||Most have no debt and when they do they pay it soonest possible to avoid accumulating or paying higher interest rates.|
|Spending||They are more impulsive.||They spend only after careful consideration.|
|Earning method||Actively work to earn their money.||Get passive income from investments; money works for them.|
|Philanthropy||Rarely help others except family and relations.||Like helping select worthy causes.|