Most people often confuse being rich with being wealthy, but there is a significant difference between the two.
I believe that there is no textbook definition of wealth. Okay fine, I just don’t like the dictionary definition of wealth, but for the sake of illustrating my point, here it is:
Wealth: noun: an abundance of valuable possessions or money.
Here’s the thing though… the amount of money doesn’t actually determine your wealth. And it can be a dangerous point of view because one who wants to accumulate wealth can be led to believe that money is wealth and spends his or her life chasing money for all eternity.
A tad melodramatic, I agree, but it helps paint the picture.
This is what we were taught to believe since our youth. To me, wealthy meant “flashy”. It meant “rich” folks with big gorgeous houses, all the fancy cars, and nice clothes. To my family and I – that’s what wealth meant.
It wasn’t until I started my own wealth creation journey that I discovered there were several characteristics of wealth that separate them from the rich.
What are the characteristics of wealth?
There are many contributing factors to wealth, but here are 3 main characteristics that you’ll find in most millionaires and billionaires.
1. Their perception of time.
It has to be worth something. Either in monetary value or in perceived personal value.
The wealthy look at life through the lens of value and time. They ask questions like, what’s the value of this thing I’m trying to accomplish and what’s the time/effort it’ll take me? For example, a trip to the grocery store isn’t “I need to grab a couple of items” it’s broken down into steps.
For example, a grocery trip takes me 20 minutes one way to get to the grocery store and then another 20 to come home. I plan to spend about 15-20 minutes at the grocery store to grab the items I need. So the total time estimate is approximately 1 hour. Not including the time to plan the trip and get ready to go out so let’s add another 20 minutes.
To round it all up, it takes a total of 1.5 hours of my time to get there. Let’s say my time is worth $1,000/hour. That means, for me to make a trip to the grocery store, it’s actually costing me $1,500 AND the cost of groceries, which we’ll estimate to $350. On average, I make 4 trips per month to the grocery store, so my total time (monetary) investment is $7,400!!
And here you thought grocery shopping was relaxing and care free. Not when you make $1,000/hour. It’s worth it for me to pay someone to get my groceries even at $100/trip.
The difference between taking the time to get my own groceries and having someone else do it for me is $1,800 (done for me) vs $7,400 (if I do it myself)…… THAT’S A WHOLE $5,600 of a gap!
Want a closer look at your own math? Come have a wealth chat session with me.
Wealth is about becoming, it’s not a checklist of to-dos.
It’s not that the wealthy think about money 24/7. As a matter of fact, they have their money working for them automatically that they rarely think about money at all. It’s the fact that they don’t look at money as something to earn from a job or side hustles or your multiple income streams. They look at HOW to CREATE money and wealth, which is an entirely different perspective.
They think about how to create the engines where others can make money and by doing so in turn will create cashflow in their own pockets. Instead of an entrepreneur or employee, they look at this game from the lens of an investor.
While the rich spend their time chasing after money, the wealthy chases after assets. Assets are what allows the wealthy to put their money to work and create MORE money for them. Think of “assets” like having a team of workers that help you make money WITHOUT you having to be involved. It’s almost like running a business, but even better because you don’t have to do the work.
Can money measure real wealth?
Money can be used to measure wealth if you’re trying to win a contest. But the truth is, most of us don’t want to be millionaires. We simply want to be able to pay our bills, retire comfortably, and live our best life without money stress or confusion.
Therefore, I recommend redefining what wealth means to you. We never want to look inward and most of us simply want the results and not the journey. I get it. But to get YOUR results BEFORE you turn 65 and are out of money, it’s crucial to redefine what wealth looks like for you. Think about the senses – what you’ll see, what you hear, what you’ll smell, what you’ll touch.
Our brains are powerful machines, but in order to access that power, you’ve got to be able to know which dials to turn and how to prime it for your own success.
What is the difference between rich and wealthy?
Simply put, the rich are people who work very hard and chase after money. The wealthy are disciplined, have clarity on what wealth looks like for themselves and their family and have freedom.
Freedom comes from having your money work FOR you so you don’t have to go endlessly chasing after it.
The question is – which one do you prefer?
Start now and lay your foundation to creating generational wealth.