Which would you rather be? Rich or Wealthy.
Get rich quick schemes… so enticing. No work and 100% benefit. Sound great? There are many ways this can happen. Lets use the lottery as an example. As of this writing, the Powerball website demonstrates the probability of winning the jackpot is 1 in 292,201,388.
I am not saying the lottery is a waste of money. Its fun to get a money tree as a gift. That excitement we feel while scratching, not knowing what is going to happen next. But lets be honest, its not a replacement for wealth building.
So lets talk about what being “rich” versus “wealthy” is and what it means to you.
Being RICH.
Being “rich” is coming into money suddenly (like our lottery winners). Did you know the average lottery winner blows all of their winnings within 3 to 5 years, ending in bankruptcy? Its commonly referred to as “the curse” of the lottery. More often than not, lottery winners regret playing and winning, finding themselves suffering from depression, divorce and even suicide. People come out of the wood work, with their hand out, asking (sometimes even demanding) that their newly minted rich family member/friend fork over their “rightful” cut.
Why “the curse”? When we come into an unexpected landfall, its an overwhelming and life changing event so great our minds can't comprehend it. Our purchasing power, over night, just increased 1,000 fold. We buy things, and large things, simply because we can, never thinking about the long term consequences. Often times, our “friends” are over come with jealousy and envy, driving a wedge between even the longest of friendships. The money coming in seems never ending and so the purchasing goes on. Investments in other get rich quick schemes are no longer seen as a “long shot”, only to find the money evaporating like water out of a boiling pot. Just as quickly as the money came and so it is spent… 10 fold.
Getting rich can turn into the kiss of death, but not always. In truth, the biggest problem with getting rich quick is the lack of time to understand how to manage such a large sum.
Being WEALTHY.
Being “wealthy” is building a lifestyle over time and holding onto that wealth (which is what I teach here). It doesn't need to take 30 or 40 years, not that there is anything wrong with that but can be accomplished in 15 years or less. Being wealthy is more than just building financial security/independence. Its about taking a step back and looking at your life, holistically, to include your family and friends relationships, personal goals, health goals and more. The financial goals are, in a sense, here to support/enhance all the other pieces of your pie.
Being wealthy is a mindset that is built over time through self education and self awareness of what is truly important to you. The financial slice is the first slice that is served and always taking into consideration the rest of the pie to stay in tact to be served.
Think about it like this… when friends and family gather for coffee and dessert, are all the dessert slices cut equally? Generally, no. Why is that? Because each of us have different goals… some are on a diet but have a sweet tooth and will take a small slice, some love love love the pie being served and want a large slice, some will take a slice and add ice cream, and some wont have pie at all.
Becoming wealthy is with the same mindset. Your family may be the “big” slice, or maybe your career is. Other slices may be starting a family, or a business. You may have health goals or other various personal goals, I could go on and on on what could make up your whole pie of priorities. My point is no matter how many slices or the slice sizes, there is always that first slice that needs to be cut and served without compromising the rest of the pie. That first slice is wealth building.
So there you have it, rich vs. wealthy, pros and cons. Which reminds me, I have a birthday party coming up, better go get that money tree… 😉
Define your pie slices. What are your life priorities? Health, Family, Career are just a few things to get your going. I would love to hear from you. Write you answers below in the comments section.