Be Wealthy NOW, Get RICH Later

UPDATED for 2024

What is the difference between Rich and Wealthy? Is there one at all, and if so, does it really matter?

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Most of us likely think that being “rich” and being “wealthy” means the same thing. After all, they both mean that you have as much money and resources as you need, right?

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But, as an accountant, CFO, and wealth coach, I can tell you that there are a few subtle but distinct differences between the two. I’ve also found that knowing these differences has the power to impact both your money mindset and your ability to create long-term financial success.

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So what is the difference between Rich and Wealthy, and why should you care? Let’s get into that right now, starting with RICH.

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“Rich” describes the things that you can see. For example, if someone has a big house, a fancy car, or a collection of designer handbags, this is a sign of being Rich. It’s the external appearance of having money. “Rich” describes everything that a casual observer can see.

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“Wealthy,” on the other hand, is everything that casual observers can’t see. It’s the tangible things, like your assets, bank accounts, savings, investments, retirement funds, and all of your behind-the-scenes acquisitions. It’s everything that you’ve accumulated on the material side. Wealth often leads to an outside expression of having money and resources, that thing we just defined as “Rich.”

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Wealth is ALSO the part of the money game that is an inside job. Building Wealth requires focusing not only on physical assets, but also the intangible assets. We’re talking about things like mastering your money mindset, improving your relationship with money, and being aware the ways that you attract money into your life.

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So to put it in the simplest of terms…

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“Rich” is what you can see, and “Wealth” is what you can’t see. I explain it HERE…

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Now, which of the two comes first?

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Knowing the basic difference between the two, I bet you can guess which one is the more foundational goal! Here’s what I tell my clients…

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Become Wealthy now, get Rich later.

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Here’s what I mean by that…

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The biggest downfall I’ve seen is that many of us try to skip right to Rich before building any Wealth. But this is a precarious place to be, to say the least!

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Building Wealth starts from within. It means creating a positive money mindset and a beneficial relationship with money. It begins with determining what “Wealth” means to you. Then you need to determine how you personally identify with money.

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This includes recognizing how you attract money, identifying your spending habits, and using this information to establish positive Cash Flow. It also includes how you choose to move forward up the Financial Planning Pyramid, from establishing Cash Flow to Investments to Legacy Planning.

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Creating Wealth means building up your assets, protecting them, and growing them. Then, set the cycle on “rinse and repeat!” (Read more about the stages of Financial Planning and how it relates to Wealth building HERE.)

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Wealth is both saving for yourself and enjoying your lifestyle NOW, while simultaneously saving for your future.

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Building Wealth comes before getting “rich.” It’s making sure that you stabilize your finances before you share any public displays of luxury (the rich” part!).

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In other words, build up your WEALTH first, and the rich will follow! (I explain that this clip HERE!)

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Now, what do you think about how I describe the difference between Rich and Wealthy? Leave me a comment and let me know how this lands!

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Until next time,

Love, Light, and MONEY, Honey…

Kaylee