Being Rich vs. Being Wealthy

Being Rich vs. Being Wealthy

Being rich is about having a lot. Some would say too much. With each new purchase, life just gets a little more complicated. A favorite pair of shoes is always in the wrong house. Tax returns become books. There is enough money, but not enough time.

Being rich is about constant increase. It takes a lot of work to get to the top.  And sometimes it takes a lot of help, too. Rich people don’t have problems, they have staff. And the staff is exquisitely trained and attends to every detail. As the details grow in number, so do the staff.

Being rich is a risky proposition. Managing all the things and all the people creates a hidden weakness. Expenses keep going up, even when income goes down. From the outside, everything can look great, but sometimes it doesn’t feel great.

Becoming rich almost always involves leverage. Leveraging people, time, and money. Leverage is risk. Risk creates excitement… and stress. The highs are higher and the lows are lower.

A bad year for business or losses in the market can have devastating consequences. You learn that… yes, it really is possible to lose money in real estate. Or that supporting an unprofitable venture can be worse than losing your job.

What you can’t pay for in money is sometimes paid for in health.

There are a few games that can never be won. There is always someone who is richer, smarter, and better-looking.

Maybe the goal is simply to have enough. What does that look like?

And here is the difference between being rich and being wealthy… wealthy people have enough.

That’s not to say that wealthy people don’t have nice houses or sophisticated portfolios. They often do. But they recognize how much they actually need to be happy. And they passed that point long ago.

Sometimes, having more is helpful, but just as often having enough means needing less.

While being rich is about complexity, being wealthy is more about simplicity. A life of accumulation can transition into one of appreciation. Late nights at the office are replaced by lunches with friends. Morning commutes become leisurely walks. There is less time doing and simply more time being.

Wealthy people don’t work because they need to, but because they want to.  Within moderation, they are in a position to give their time and money. They have time for their family and personal pursuits. They no longer compete, because they crossed the finish line long ago. They sometimes sit in the stands, cheering others on.

Wealthy people have more than they need. And this wealth can be passed down to create new generations of wealth. But more valuable than money is the knowledge of what is enough.