Updated: Mar 12, 2021
This week I have been pondering the difference between being rich and being wealthy.
Is there a difference I hear you ask?
There is a BIG difference. Being rich, having lots of money, doesn’t make you a wealthy person.
Let’s consider this in a short story. There is Rachel. She has a job that pays her a lot of money but requires her to travel and work all hours. This job pays for her large house, two very nice cars, and multiple 5* holidays each year to make up for her being away so much with work.
Rachel is classically Rich.
Now meet Wendy. She earns a very comfortable £50,000 a year and lives with her husband and two children in their townhouse. They own a very average car and go on one main holiday a year.
Wendy and Rachel are lifelong friends. They meet up at an expensive SPA that Rachel insisted on booking and paying for. Rachel has limited time back at home and wanted to do something luxurious with her friend. During the weekend Wendy tells Rachel she is resigning from her stable job to work on a cause close to her heart, saving the whales! Rachel is shocked, she asks ‘How can you afford this’ because she can’t give up working, like ever! Rachel’s lifestyle is expensive and she hasn’t saved very much for her financial future.
Wendy explains that she has always enjoyed her money and lifestyle, but has been smart with her surplus income and savings. She told Rachel she always wanted to do something with a purpose at this stage of her life, so she prioritized how she spent and saved her money to help her to live life in line with her values. Wendy is Wealthy.
Being wealthy is not the same as being rich. It is the meaning and purpose you give to your money that matters.
The word wealth comes from the old English word weal and is connected to wellbeing. Being wealthy doesn’t mean you have to have lots of money, it is about being financially well to live the life that matters to you.
What did you learn growing up about money? Your relationship with money will impact your behavior with money today. If you have unhealthy habits that don’t serve you, even when you earn more money, you are unlikely to become wealthier, just richer!
The more money you have the more unhelpful behaviors are exaggerated. Take a deep dive with me today and explore how you can become Wealthy and Rich…. If that’s what you want, it’s up to you!
Arrange a discovery call with me, Emma Wright, Financial Coach who is also a highly qualified Chartered Financial Planner. Email me at firstname.lastname@example.org.