There’s a BIG difference between being rich vs wealthy. But most people don’t realize that.
At some point in time the meanings of the words ‘wealthy’ and ‘rich’ merged.
Ask your friends the difference between wealthy and rich and you’ll be met with blank stares.
Nowadays, most people think that they mean the same thing. But they don’t. At least we don’t think so.
Between the two of us, we graduated from Harvard, Wharton (UPenn), and the Mayo Clinic School of Medicine. Put simply, we’ve had the opportunity to live with, study with, and spend time with a lot of people who are rich or wealthy.
At first we didn’t see the difference, but it slowly became more clear and the distinction is important.
As you’ll see in this article (and yes, we will share a couple eye opening stories from things we’ve seen), there’s a few reasons why everyone should strive to be wealthy. In fact, we found that being rich can actually prevent you from becoming wealthy.
But first, Chris Rock seems to have a pretty good understanding between the two (the video is funny but it does have some colorful language not suitable for kiddos!)
What Does Being Wealthy Mean?
Simply put, wealth is the accumulation of assets.
So does being wealthy just mean someone who has a lot of assets? Not exactly, but you’re getting warmer.
To begin, a wealthy individual follows most of the principles we have described in our beginners guide to personal finance.