Many may think is there a difference? Confusing the two can cause you to live in a false sense of security. I want to share how to tell the difference between the two and how living a wealthy life is better than living a rich life.
Income vs Cash
If you make $10 million dollars a year people would be quick to say that the person is rich. This same person may have a $8 million dollar home with $8 million dollar home utility bills, three car payments, $300K in credit card bills, and student loans of $150,000. This person may have be rich in income, but they don't have cash in the bank because it is all going to someone else. They are not wealthy because wealthy people are cash rich! You will never find a wealthy person who is house rich and cash poor. They will always have an abundance of money to cover their wants and needs!
Have to vs Want to
I see so many people in high paying positions complaining about their jobs. I have heard Lawyers, doctors, engineers, even entrepreneurs complain about how much they hate what they do. It is confusing because with the amount of money they make they should be enjoying life, but they can't because they are living the rich life versus the wealthy life. People who are wealthy work because they want to not because they have to. It may be someone who makes $50,000 a year doing what they love and can stop at any time and be fine because they have behaved with money for a long time.
The key is to know the difference. Floyd Mayweather is rich, Oprah is wealthy. Tom Cruise is rich, Warren Buffet is wealthy. Having choice to do what you want is true wealth. Just making money is not enough you need to be able to keep it and save it! What life will you choose?
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