Being rich and being wealthy are two different things.

[CTO114]

Personally, I've come to realize that earning a lot of money doesn't necessarily mean that someone is building wealth.

Some one can earn a lot of money daily, weekly or monthly as the case may be, drive expensive cars, wear very good designer clothes and still be one payment away from getting into financial woes. Simply because their lifestyle is hugely dependent on money that requires them to keep working.

Conversely, someone earning way less might be buying productive assets, investing in businesses, or even building other streams of income. They may not look as flashy or wealthy today, but they could be building something that can earn the financial freedom in the near future.

There's a huge popular opinion that owning assets automatically make you wealthy. I strongly disagree with that exact statement. Just owning assets doesn't automatically make you wealthy. Owning 5 houses with heavy debt and inquire constant expenses can definitely be a bigger burden than an ordinary good paying job with good savings. For me it's not about what you own, but how you utilize those assets and how they affect or contribute to your financial life.

In my opinion, being rich is about how much money you can gather in earnings from different sources, and being wealthy is how much you can utilize, invest, manage and preserve those diverse earnings.

It's not how much comes in as earnings, it's about how much your dependent on the next payment!

[Joy_learns_crypto]

To me you can't take away being rich to getting wealthy from the equation, I see your perspective in this very clear but I think there are grey areas in the picture.
One can be rich and in the long run make nothing from it, I will consider them a wasteful rich person and in the long run they get broke if they don't change their ways, but the rich person who was smart with it, make future smart investment here and there, started businesses and handling it well ends up in the long run as a wealthy man.

You can't be poor and skip being rich to get to wealthy expect someone gives you an a huge some or you win a lottery then start managing it until you become wealthy but this are low chance opportunities that's why even the world bank says it's hard to break out of the class you where born in.

You first have to aspire to be rich, get the multiple source of income, then manage them well.

[hmbdofficial]

There is some truth about this that earning a lot of money will not automatically make someone become wealthy. I’ve seen some threads discussing this matter and I’ve always maintained mine stands about it just like I’ve said again. What matters is actually how much you can save and invest also from that which you’re earning after covering also for normal expenses. Some people can actually earn very high amounts but they still end up struggling Because most of the money that earn is used to funds a lavished lifestyle.

Also owning asset alone ain’t enough either, because asset can come with debts and maintenance cost too. I think true financial security emerges from managing money you’re earning wisely, and also controlling debt. it just becomes easier to get that financial stability when your earnings are higher.

[ObeyKnock]

The real difference is dependency. A rich person needs their next paycheck/deal/month of revenue to pay for their lifestyle. A wealthy person owns assets which pay for their lifestyle.

Time and optionality are real wealth if your costs of living are paid for by assets. Someone with a lower income that invests in income producing assets consistently can be freer than someone making 10x as much and spending almost everything to show how successful they are. Cashflow is important but owning your time is better.

[bitLeap]

In my opinion, being rich is about how much money you can gather in earnings from different sources, and being wealthy is how much you can utilize, invest, manage and preserve those diverse earnings.

It's not how much comes in as earnings, it's about how much your dependent on the next payment!

Everyone has preferences in defining wealth, you can agree or disagree but that does not mean generalizing that everyone will agree with your opinion about being rich and having wealth.
When income is directly proportional to expenditure means it is not really financially sound. One thing I do know is that wealth is about feeling the sufficiency of what you have, so that whatever you want can be easily fulfilled.

[Finebone]

In my opinion, being rich is about how much money you can gather in earnings from different sources, and being wealthy is how much you can utilize, invest, manage and preserve those diverse earnings.

Your distinction about rich and wealth is not the best because we all see differently. I might sees financial freedom as real wealth, I mean a situation whereby I have already put down systems in place that will be paying me consistently till my last day, and my offspring can take off from where I stop, while another person can believe that once he is able to afford anything he want without bothering anyone, then he is wealthy, so wealth is relative.

I agree with you that if you are earning a lot of money, it doesn't make you rich or wealthy because once you are dismissed from that job, you will crumble financially if you have no business or system in place that pays you consistently, which I believe is the thin line that separate the reach and the poor.

[mu_enrico]

Yeah, there's a saying, "Rich is having money. Wealthy is having time," and there are many more different views about it.

For me personally, it's the same; it's about your free cash flows. You can earn $100,000 a month and spend all of it without saving. For many people, you are rich or wealthy; for me, you aren't. You need free cash flows to buy productive assets, which, in turn, will generate more free cash flows. When you have enough free cash flows without needing to work, then you are rich/wealthy.

Anyway, don't get me wrong; you don't need to start your own business to be rich. As long as you have high-paying jobs and are mindful of your expenses, you'll have enough free cash flows to start building productive assets.

[danieldavidd]

Based on observation being rich and being wealth is two different words a regular  person can look rich based on his lifestyle wearing designer clothes and renting cars to impress people but being wealthy is when you crate value. something sustainable like investment. Bitcoin investment or real estate oil and gas at least something that will generate funds for a long time.

[viljy]

I didn’t quite get the point. One person has a lot of money and doesn’t experience any financial difficulties. The other has a lot of debts and burdensome expenses for maintaining property and ostentatious overconsumption? Well, then they should have called the first one rich and the second one poor - someone who only pretends to be rich (leading a luxurious lifestyle beyond their means).

[Jaweria parveen]

A rich person changes his life and makes a difference in his lifestyle and enjoys money which gives him peace. A rich person is one who can also change his life but his aim is to help people and that is how he becomes rich. Today's rich people are very ignorant and build their reputation according to their own will while the rich work hard and move forward with people to help them. Just like if there is a person with money in a village, they do not consider him rich, they consider him rich because he is taken along to help in every small and big work due to which they consider him rich and whoever does not help anyone and shows the pressure of his money is rich. Apart from this, there is another reason but most of the rich do not have good words when they do not help anyone or work to make someone look down on them.

[New Judgement]

The real difference is dependency. A rich person needs their next paycheck/deal/month of revenue to pay for their lifestyle. A wealthy person owns assets which pay for their lifestyle.

Who tell you that rich people only depends on paychecks/deals to pay for their lifestyle? Rich people own businesses too, they have investments scattered everywhere. Rich people are self dependent, even if they have a pay jobs they have other sources that generates them money. They don’t have to work for other people to maintain their lifestyle. Before you are considered a rich person, your money is beyond paycheck alone that’s the point I’m making. Let’s not mistake middle class civil servants as rich people. A wealthy person is just a class above a rich person, probably due to the size of the investments, the revenue they generate, their networks and the reach of the establishments.

Cashflow is important but owning your time is better.

Okay let’s assume I owe my time, my 24 hours is controlled by me, but I don’t have money. Does it mean that I’m better than someone working in an oil company that have a good cash flow? What I’m saying in nutshell is that, you can control your time and still be broke. Not all busy people are making money. Nothing beats a good cash flow. And a cash flow doesn’t necessarily mean that it will be a paycheck. It can be your personal business.

[Gozie51]

There's a huge popular opinion that owning assets automatically make you wealthy. I strongly disagree with that exact statement. Just owning assets doesn't automatically make you wealthy. Owning 5 houses with heavy debt and inquire constant expenses can definitely be a bigger burden than an ordinary good paying job with good savings. For me it's not about what you own, but how you utilize those assets and how they affect or contribute to your financial life.

I won't subscribe to your new model of making landed property asset as less of assets. Landed property is valuable overtime and this has been confirmed in the past and currently. However, I understand the angle that you are going to even though you didn't clear it out. Talking about if the house or landed property is encumbered by debt or mortgage. Yes, a house owner can be on lease mortgage or some sort of debt but usually such debt is even limited to time. If the house owner clears whatever debt owed, the house ownership reverts immediately back to him. In other words, I have even heard that a house owner or land owner is a potential rich man depending on where it is located. Or else, how do we explain the need and struggle by parents to have and relinquish or bequeath landed properties to their heirs. Traditional and in this current age, land and houses are valuable assets that has high potential of making anyone rich and wealthy if managed properly.

[ObeyKnock]

Who tell you that rich people only depends on paychecks/deals to pay for their lifestyle? Rich people own businesses too, they have investments scattered everywhere.

Sure, many rich people also have businesses and investments. But I am talking about dependency here, not whether one has other income streams or not.
If you still need to work and/or close deals in order to maintain that lifestyle, then youre still dependent on active income. This is different from having your living expenses covered by your assets regardless of whether you work or not.

Okay let’s assume I owe my time, my 24 hours is controlled by me, but I don’t have money. Does it mean that I’m better than someone working in an oil company that have a good cash flow?

No. Time without money isnt worth much. The point is, once your expenses are covered by passive income, time now has value because you have choices. Of course cash flow is important, and Im not making an argument against that. The question is whether that cash flow still relies on you working or not.

[Bitcoin-Forever]

Being rich could be a present condition of any person who has a good financial standing, but this does not justify their affluence in terms of assets; someone can be rich today but have no assets, and that is why we treat wealth as part of the advanced assets we have that determine who is rich and who has accumulated wealth. The difference is clear, and the wealth you possess defines how rich you are.

[Ruttoshi]

A rich man is someone who is rich in fiat and have no investment whille, a wealthy man is the one who put those money into long term valuable assets that generates profit for him overtime. Of course, a rich man income must be bigger than his monthly expenses.

When I was a teenager, some of my friends parents that were rich because they had a good paying job. They didn't invest the money and just kept it in the bank. As inflation rises overtime and they're also getting old, their money lost its purchasing power and currently, they're not rich anymore. Those that invested their own salaries are still enjoying from their investment.

[Zigabel]

In my opinion, being rich is about how much money you can gather in earnings from different sources, and being wealthy is how much you can utilize, invest, manage and preserve those diverse earnings.

It's not how much comes in as earnings, it's about how much your dependent on the next payment!

A wealthy person always was once rich, you have to get rich at a point before you eventually get wealthy and riches are mostly gotten from earnings,  like you did mentioned earlier,  a good paying job or stream of income (maybe a business) can get you to the rich status but Productive asset gives you the leap into been wealthy,  beyond the management,  utilisation and preservation is how productive those assets are, you can have a good management system to utilize the capacity of that asset but if the productivity of such is poor, you will likely still remain just rich and waiting on the next profit such an asset gives you at a time.  When you have multiple productive income streams,  you get that distinguishing advantage that can place you as wealthy,  at that point,  you aren't dependant on pay or waiting for a long time for some profits accumulation, you probably have it flowing from several others giving time for the other to completely be as profitable as you desire. So for me the wealth is mostly about productivity of the acquired assets or sources of income and not just having the sources of income that you manage,  preserve and utilize,  Productive investment is the key for me.

[Cookdata]

The real difference is dependency. A rich person needs their next paycheck/deal/month of revenue to pay for their lifestyle. A wealthy person owns assets which pay for their lifestyle.

Time and optionality are real wealth if your costs of living are paid for by assets. Someone with a lower income that invests in income producing assets consistently can be freer than someone making 10x as much and spending almost everything to show how successful they are. Cashflow is important but owning your time is better.

I think context matters too. There are wealthy people that lives flashy lifestyle and they are damn wealthy, they are liquid, have legit investments and love to party, the life that rich and fake rich people does is what they love but their source of income isn't clean. However, the world does not care about source of people's income, as long they see you with clean funds and have investment they can point.

There are people that are rich, they depend on their income but don't even live expensive life. They are act like they are rich but operate a classic lifestyle and don't have investment, once they are out of their jobs, their flow of income stop immediately. There are wealthy people that are legitimately wealthy and love lifestyle display and showoff. So you can, see context matter. Lifestyle and how people spend doesn't defined financial status, it's your source of dependency where the money comes and investments that matter.

[Popkon6]

Look, a person can be rich but if his income is limited, he can still save money, but there are many people who earn money but his expenses are high, that person will never be able to save money. There is a strategy for saving money. To earn more than what you are earning later, you have to find a source of income.
The higher your income, the more wealth you will have later, so investing or creating wealth for the future should be the real goal. You have money, you are holding it today, aiming to increase that wealth later is considered a source of wealth.

[Donk1]

Well everyone is different when it comes to their financial life. You don't expect the way you do your things to actually work for another person no, it's highly impossible. We all strive for financial success, which is being wealthy or perhaps being rich, but the first thing to understand is that no matter how you get there doesn't matter it's all about being there to eat the fruit of your labor. This doesn't include bad means like dealing with drugs or scamming people, no those are wrong and aren't really considered legal in the eyes of the law.But what I'm trying to say is that, yeah I like your perspective, but in an overview point, you can't simply determine every individual's financial success with just words. Rich is a word ,wealthy is also a word you can't actually tell yourself that you are it's folks who see you that will still say those stuff. Because the desire for money is endless, basically the moment you stop searching for money is supposed to be at your retirement age, even then people still work for their cash.So the truth is, how you're doing it is different from what you're doing and what you're doing is what determines the outcome, because if what you're doing doesn't have any potential then it's probably a lost cause. About the asset part a person who hasn't secured his or her future, if you enter the life of luxury, then you might fall back, who knows It's not even certain that they will . So that's all.....

[ObeyKnock]

Lifestyle and how people spend doesn't defined financial status, it's your source of dependency where the money comes and investments that matter.

Yeah, agreed. Lifestyle is mostly noise. The relevant distinction still revolves around whether or not you have to work to keep getting paid.
If you stop working or closing deals and the money dries up, then youre not there yet. As long as your money doesnt depend on your labor, youre good.