Rich vs. Wealthy: What's the Difference? - Deepstash
Rich vs. Wealthy: What's the Difference?

Rich vs. Wealthy: What's the Difference?

personalfinanceforbeginners.com

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Characteristics Of The Wealthy

Characteristics Of The Wealthy

  • They live in homes just large enough for their needs and drive used cars.
  • They have affordable interests.
  • They don’t worry about having the highest credit score possible as they have enough saved to skip loans and make large purchases with cash.
  • When they get a raise, they focus on investments instead of raising their spending. 

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Rich And Wealthy

By making wealth your priority now, you could be both later. Establish a strong financial foundation that will give you financial security and peace of mind moving forward. 

Living paycheck to paycheck is a guaranteed way not to build wealth.

If you’re just starting on your personal finance journey, it might not be time for you to start acquiring these assets yet.

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How To Become Wealthy

How To Become Wealthy

  • Investing in stocks is simple if you avoid lucky stock picking. Keeping long-term perspective, invest early, especially in low-cost index funds.
  • Rental properties.
  • Small business ownership.
  • Delaying gratifications.

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Things To Do Before Focusing On Building Wealth

  • Create a budget and stick to it
  • Pay off your debt – especially high-interest credit card debt
  • Learn how to save money to cover unplanned expenses
  • After establishing an emergency fund and becoming debt-free, go all-in on building wealth!

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The Definition Of A Rich Person

Someone rich is someone who has the prestige and social status that comes with living a lavish lifestyle. This definition ignores the fact that some rich people have their finances in disarray and live paycheck to paycheck or in debt.

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On Being Wealthy

Your wealth is the value of the assets you own

A wealthy person aims to build or acquire assets that hold their value or generate ongoing income, thus providing security and peace of mind.

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Rich Vs Wealthy

  • Being rich is having the ability to spend lots of money now
  • Being wealthy is accumulating assets that allow to you preserve your money for use in the future.

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CURATED BY

alexis_tt

"Making money is art and working is art and good business is the best art." ~ Andy Warhol

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