Rich Vs. Wealthy: Why You Need To Know The Differences

When you become immersed in the personal finance world, you’ll come across many terms and interesting discussions about money like rich vs. wealthy

What Does It Mean to Be Rich?

Put simply, rich people have money; but they do not necessarily know money. To be rich is to earn a lot of money or own a lot of things, but also have a high cost of living or a number of expenses which makes this money less sustainable.

What Does It Mean to Be Wealthy?

While not all rich people are wealthy; all wealthy people are rich. The difference is that wealthy people are able to control and manage their money in order to create a sustainable lifestyle. They can enjoy a rich life without a time limit.

The Differences Between Being Rich and Wealthy

RICH

No or little financial planning focused on affordability and spending

WEALTHY

Financial planning includes tax strategies, estate planning, and budgeting

The Differences Between Being Rich and Wealthy

RICH

High expenses compared to income

WEALTHY

Low expenses compared to income

The Differences Between Being Rich and Wealthy

RICH

Money is finite and will run out

WEALTHY

Money is sustainable and will last

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