There Are Differences Between Being Rich, Wealthy and Financially Free-And You Should Know Them

What does retirement look like for you?

That can be a hard question to answer for many people. Where are you going to live? How is your health? What is the state of your relationships with family and friends?

It will help you prepare for your retirement if you can answer those and some other questions.

But before you plan your retirement, it might be helpful to clarify some concepts you’ll likely encounter as you plan:

What Does Being “Rich” Mean?

For retirement planning, being rich can simply mean that you have a high income-at that moment in time. Moreover, being rich can be a short-term cycle. Someone loses a job, a business fails, etc. Suddenly, that person isn’t rich anymore. If the high income dries up, everything associated with that income also disappears.

Is Wealth All It’s Cracked Up to Be?

Your retirement wealth is your accumulated savings and investments you have when you retire. But does that mean you are financially wealthy?

Not necessarily.

Being financially wealthy means that you have the financial assets that will allow you to live your chosen lifestyle.?

Financial Freedom

Let’s go one step further. When are you financially free? For retirement planning, you are financially free when your accumulated assets provide you with enough passive income to enable you to live your lifestyle for the rest of your life. You can do so and still pay your expenses.

This is Your Job

Turning the income you earn into stocks, bonds, real estate and other investments is your job. This is how you become financially free when you retire.

Your job is also to educate your family on how to handle money. When you die and pass on your assets, you want them to have the knowledge and understanding of how money works.

One More Thing

Don’t forget, you need to be doing something. People who retire and do nothing die. Volunteer or work at a charity. Do something. Stay engaged.

Curtis is a Financial Educator and Wealth Mentor. He founded Money Smart Education in 2017. Curtis helps his clients get out of debt, build generational wealth and achieve financial freedom. He talks about the differences between being rich, wealthy and financially free in his book, The Money Management Book.

If you need help planning for your retirement, give Curtis a call at 469-590-801. Or you can connect with him here or get on his calendar at https://www.scheduleyou.in/iZ2VshWLS.