Wealthy vs. Rich: What's the Difference?

 Think of the richest person you know. It should be obvious- A big house, a luxury car, and designer handbags are social cues that stand out.

Now think of the wealthiest person you know. It’s likely that you know at least one; However, they’re probably harder to place.

So- what’s the difference between the wealthy and the rich?                                      

The price of being (or appearing) rich is, of course, money. This creates a paradox: individuals trade actual money for the outward appearance of having money. All too often, this can result in being a slave to a job, taking unnecessary investment risks or going into debt to keep that appearance alive.

One key problem is that we humans are tempted to show off our riches. And always have been. 100 years ago the Vanderbilts erected a 250-room mansion to flaunt their wealth. Cartoon Scrooge McDuck had a swimming pool of gold. Instagram provides a window into the luxurious lifestyles of the Joneses.

Wealth is different. The difference between wealthy and rich isn’t necessarily a dollar amount. To me, it’s a mindset:

• It’s the knowledge that I have a job that earns enough to cover my bills, and a rainy-day fund for those unplanned expenses.

• It’s not needing expensive brands, because money in the bank is sexier than money in the closet or driveway.

• It’s occasionally trading money for time so I can spend more of it with loved ones.

• It’s being charitable- because giving time and money makes me feel better than spending it on myself.

A rich lifestyle says “I need more to keep up”. A wealthy lifestyle says “I have enough”.

Do you want status, stuff, and stress? Or peace of mind and freedom to enjoy the important things in life?