Rich vs wealthy — what's the difference? 💸

2-3 min
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Hey there, money maestros! Welcome to the first Slice of 2024.

We’re diving straight in with a discussion about being ‘wealthy’ versus being ‘rich’. Is there a difference? Both sound like you're rolling in Rands, but there's a nuance that’s worth exploring.

The cash splash of being rich

Let’s start off with being rich: the high-flying lifestyle, the flashy cars, designer threads… Being rich is like giving your bank account a megaphone and letting it scream: ‘I’ve got the bling!’

Yup, being rich is often about the glitz and glamour. It’s about earning an income so you can buy whatever catches your eye, whenever it catches your eye. But being rich can sometimes be a rollercoaster ride. One day you're living the luxe life, the next you’re questioning where all the money went…

The bottom line is that being rich doesn't always equate to financial security. You might have all the toys in the world but if your money management game isn’t strong, those toys will quickly disappear.

The long game of wealth

So, what does it mean to be wealthy? First of all, it’s a long game. Less quick thrill, more slow burn. It’s about assets, not accessories. We're talking investments, real estate, maybe even a few well-placed stocks. Your money is growing while you sip your coffee.

Unlike the rollercoaster ride of being rich, being wealthy brings a sense of security. It's not just about what you have now, it's about what you'll have in the future: your savings, investments, retirement funds… Becoming wealthy requires patience. It's not about instant gratification; it's about delayed pleasure. It’s about saying no to that impulse buy today so that you can say yes to a more comfortable tomorrow.

The freedom factor

What’s the biggest reward of building wealth? Freedom. When you're wealthy, you have the freedom to make choices based on what you want, not just what you can afford right now. You’re not chained to a paycheque. Rather, you can live your life on your own terms.

Being wealthy is far more than just having a big number in your bank account. It's about having a strategy and building a foundation of financial security that allows you to enjoy the fruits of your hard work without constantly wishing payday would arrive sooner.

Strike a balance

If your financial plan is to build wealth, it doesn’t mean you’re not allowed to enjoy the money you’ve worked hard for. It’s all about striking the right balance: Use 22seven to create a budget that includes saving and investments, but also a small portion for fun. Yes, you can have the latest Apple Watch and solid investments at the same time!

If you’re battling to balance the books and you need some help coming up with a long-term money plan, it might be worth chatting to a qualified financial advisor. Take the first step this January and set yourself up for life. Good luck!