Rich or Wealthy?

When we think about figures like Elon Musk, Jeff Bezos, Warren Buffett, and Larry Page, our minds often conjure images of massive companies, vast wealth, expensive cars, and luxurious mansions. It's natural to wonder just how rich these individuals are, isn't it?

One common misconception we tend to make is equating a person's wealth with the expensive, tangible possessions they own. In one of my favorite books, 'The Psychology of Money' by Morgan Housel, the author offers a different perspective. He defines wealth not by the extravagant things one can buy, but rather as the money a person earns without having to actively work for it. Essentially, a wealthy person doesn't need to trade their time for money.

Wealthy individuals make strategic investments that often remain hidden from public view. They may not appear affluent in their everyday lives, but behind the scenes, they've accumulated substantial wealth, and it's growing without them having to clock in at a traditional job.

On the flip side, someone might purchase a lavish mansion, fancy cars, and private planes through mortgages or EMIs. However, they still find themselves in the cycle of working incessantly to cover bills, including those hefty monthly payments. So, here's a question to ponder: Does this make you truly rich, or do you genuinely aspire to be rich? The pursuit of big-ticket items, financed largely by your monthly salary, might leave you perpetually on a treadmill that never stops.

Given Morgan's insights, consider this: What's your core motivation for seeking money? If your answer is primarily to accumulate possessions like houses, cars, jewelry, and designer clothes, you may find yourself trapped in an unending race with no finish line. There will always be something tangible to acquire or someone to outdo.

In my view, the true essence of money is freedom. It's having the time to pursue your passions, unburdened by financial constraints, and the assurance that your bills are covered without trading your hours for dollars. So, let me ask the same question again: Does this concept make you genuinely rich, or do you aspire to be truly wealthy? Perhaps the latter, because it means you can relax on a yacht sipping a martini while your wealth continues to work for you.

Now, I'm curious—what is your essence of money? To be rich or to be wealthy?

Share your thoughts, comment, like, and let's discuss.