I have been thinking about this topic of Rich vs Wealthy a lot recently and what better time to get my thoughts out there than the start of a new year. You have a blank slate and the opportunity to direct your year and your life in a direction that makes you happy. I think that is key. What life will make YOU happy?
Why This Topic Matters To Me
I am not building out this site to make money. I like writing and I like helping people. I want to talk about personal finance and building wealth but ultimately this site is about inspiring you and giving you the skills necessary to chase the life you want. Being Rich and Being Wealthy are two very different things. Understanding the difference is important.
Being rich is all about money. Being wealthy is about being fulfilled. My hope is that you take what you learn at Money and Inspiration and build a fulfilling life.
I mentioned at Blessings Come From the Worst of Times that I had another blog I started when my wife was diagnosed with cancer a second time. I was an open book sharing the struggles tied to a 2 year period when I lost my father to a 15 month battle with cancer, experienced the loss of my daughter Isabella at birth and then dealt with a cancer diagnosis for my wife. I held nothing back. I did not care about SEO and making sure I structured things to build traffic. I just shared the battles and people showed up. They had their own stories of hardship and perhaps found hope in my words that the blessings will come. While this site is certainly of a different nature, my hope is still the same…………to help people………someone……..anyone.
Success and Happiness Look Different For Everyone
As I write financial posts you see here, I don’t want to give the appearance you should navigate every minute of every day thinking about money. I just want you to build habits and have goals that are personal to you. Success is different for everyone. Happiness is different for everyone.
You can have a ton of money yet feel empty. You can just be getting by yet feel genuinely fulfilled. Most of us grow up believing the opposite. We believe that more money equals more happiness. While I do believe money can lead to fulfillment by reducing financial stress, it also can lead to more stress if you keep moving your target. This is where strong habits will help you once the money starts coming in. If you need proof, search for how many lottery winners end up broke. It is staggering and tied to the fact they had poor financial habits.
In my experience, money does not equal happiness. I have known people with a lot of money that are deeply unhappy.
On paper they have made all the right moves. Solid income. Nice homes. Expensive cars and vacations that look great in a social media feed. Underneath the surface, however, there is stress and anxiety tied to pressure to keep it all going.
On the flip side, I have known others with modest incomes and modest lifestyles that are genuinely content. They lead a simple life, are present for their families and do not feel like life is passing them by.
As I said above, money can solve some problems. It can reduce stress and create options. Breathing room in your finances – something I am trying to teach at this site – is comforting.
Money, however, does not guarantee fulfillment and it certainly does not define success.
Long-term research from the Harvard Study of Adult Development shows that once basic needs are met, factors like relationships, purpose, and daily fulfillment play a far greater role in happiness than income alone.
Why We Confuse Rich With Wealthy
How The Two Terms Become Interchangeable
I believe it is very easy to confuse these terms because most of the world uses them interchangeably despite the fact they represent very different things.
Being rich is about how much money you have, how much you earn and what you own. It is measurable although it is a moving target over time.
Being wealthy is quieter. It is about stability, living your life without regrets and, to be cliché, stopping to smell the roses along the way.
You can be wealthy and rich but you can absolutely be rich without being wealthy.
Income, Net Worth, and a Moving Target
I recently read a good point about this topic. If someone earns $100,000 a year and is happy and fulfilled, they will not necessarily be happier if their income increases to $500,000 per year.
Rich is about how many zeros are at the end of you net worth. Being wealthy is about so much more.
I have also heard people define the difference this way: someone who is rich has a high income and can spend freely on luxury items. Someone who is wealthy may also have that high income, but they are putting what they earn to work, creating long-term financial freedom.
Real World Examples of Quiet Wealth
I still like my earlier definition of wealth, but these comments always make me think of Warren Buffett—one of the richest men in the world.
Despite all the money he has, he continues to live in the same modest house he has owned since 1958 and is famous for grabbing an inexpensive breakfast at McDonald’s. If you didn’t know who he was, you would never know he was worth billions of dollars.
Sometimes rich people want everyone to know they have money, while wealthy people are content doing what they love.
I once worked for two gentlemen who co-owned a business and had identical, substantial incomes. One was very flashy and flaunted everything he had. The other was like Warren Buffett—you would never know how much money he had until you visited his home on the cliffs in Palos Verdes, California, or he invited you to a trip to Vegas on his plane.
The Role Money Should Play
Money does matter. I am building this site to help people be smarter with it. Being intentional with your finances, avoiding obvious mistakes and planning for the future all matter. A lot!!
Financial stress is real (I lived it). Living paycheck to paycheck is exhausting (I see this at work all the time). A lack of stability can make life much harder than it needs to be.
Again, the point of this site is to help people away from that but there is another side to this conversation. You can become so focused on being financially responsible that you forget to live.
You ‘will’ and ‘must’ make some sacrifices on the road to financial stability, but you also don’t have to crawl under a financial rock.
I have seen people afraid to spend any money. Afraid to take a meaningful trip. Afraid to ever go out to a nice dinner. Afraid one wrong decision will undo years of careful planning. This comes from a good place of wanting security and peace of mind, but it can have the opposite effect.
A life lived in constant financial anxiety is not a ‘wealthy’ life!
Discipline Without Joy Is Not Wealth
I want to be clear. I hope you learn discipline. It is important. But discipline without balance can become toxic.
If every decision is driven by fear…
If every purchase feels like guilt…
If every experience gets postponed for “someday”…
Then money has stopped serving you and started controlling you.
Wealth should create freedom, not paralysis.
Success is Personal
Success is personal and thus your financial goals must be personal. When I coached the marathon program for The Leukemia and Lymphoma Society (now Blood Cancer United), I always closed a season talking about chasing a life that makes you happy. I always solidified this point with the words spoken at the end of the movie Benjamin Button:
‘What I think is, it’s never too late to be whoever you want to be. There is no time limit…start anytime you want. Change or stay the same…there aren’t any rules. We can make the best or the worst of it……I hope you make the best. I hope you see things that startle you….feel things you never felt before. I hope you meet people who have a different point of view. I hope you challenge yourself. I hope you stumble….and pick yourself up. I hope you live the life you wanted to…..and if you haven’t I hope you start all over again.’
I shared a similar message to a group of high school seniors I recently spoke to. As they venture out into the world, I asked them to chase a life that makes them happy and to do what they love. What they love and what will make them successful can only determined at the individual level.
Success looks different for everyone. Happiness looks different for everyone.
When I retire, I want to travel the world. I want to find cities and live there for a month and get to know different foods and cultures. Others might truly find happiness in a rocking chair on the front lawn drinking an iced cold beer. Neither of these paths are better than the other. They are just different.
There is no universal finish line. There just isn’t.
What is Real Wealth
This also will be defined by you but, for everyone, real wealth is about alignment.
Your spending reflects your values
Your savings and financial plan support your goals.
Your work provides meaning and sustainability (it is never too late to change!)
Your financial decisions create room for joy instead of fear.
You don’t have to be perfect. You have to be intentional.
I believe I am starting to beat a dead horse here but it is all important to me. Being smart with money is absolutely important, if not critical. Planning matters. Discipline matters. So does building fun into your life. So does taking that trip with the family. So does some good dinners at a nice restaurant. So does celebrating birthdays and anniversaries.
If you spend your entire life living for “someday”, you might completely miss today and that is not what wealth is about.
Don’t let money be the reason you stop living your life.
You can be thoughtful with your money, intentional with your money all while building joy.
Wealth is not about reaching someone else’s finish line.
It is about your finish line and building the life that is amazing for YOU!
Cheers!
