DIFFERENCE BETWEEN RICH & WEALTHY PEOPLE **************************************************************** Many people normally think that Being Rich and Being Wealthy are the same things as both involve having a lot of money. But, there is a big difference between the two. We normally hear about ‘Get-Rich-Quick’ schemes but not about ‘Get-Wealthy-Quick’ schemes. Knowledge is the key differentiator between being rich and being wealthy. Rich people only have money but wealthy people know how to make money. Rich people, may get money in an instant via hierarchy or winning a lottery. However, because of lack of proper mindset and poor money management skills, all of it can be lost in a short period of time. Many people make a lot of money, but all their money goes out of their expense column. Every time they make a little more money, they go for shopping. They often buy a bigger house or a new car, which results in long-term debt and more hard work. Nothing is left to go into the asset column. This kind of behavior that separates the rich from the wealthy. Some of these people are more commonly known as ‘One Day Millionaires’. Now they have it, the next time they don’t. Rich people are motivated by money but wealthy people are motivated by their dreams, purpose and passion. Most rich people make a lot of money with their paychecks but the moment they stop working, they stop making money also. The wealthy, on the other hand, don’t have these worries. The Definition of Wealth --------------------------------- The number of days you can survive without physically working (or anyone in your household physically working) and still maintain your standard of living. For example, if your monthly expenses are INR 20,000 and you have INR 1,00,000 in savings, your wealth is approximately five months or 150 days. Wealth is measured in time, not rupee. Wealthy and rich people both may experience downfalls and failures in their life span. However, because of knowledge the wealthy person can start all over again and build wealth over time. In contrast, rich people may find it hard to attain what they previously had. In essence, wealthy people are financially free while rich people are not. Ultimately, it’s not how much money you make that matters but how much money you keep—and how long that money works for you. Therefore, Wealthy people say - I don’t work for my money. It works for me.
Posted on: Mon, 22 Dec 2014 10:58:16 +0000
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