What Is the Difference Between Rich and Wealthy?

the difference between rich and wealthy

I remember writing in my diary once at the age of 12 that I wished my family were rich so we could afford certain indulgences like a swimming pool. The 12-year-old version of me wanted so badly to have a chlorine-treated hole of water in our backyard and thought this would bring my middle-school-pre-adolescent-self happiness. I was wrong. I was also immature with little life experience. At the time, I saw rich and wealthy as the same concept, understandably so. People can see the clear difference between rich and poor but not between the two words that both seem to mean having an excessive amount of money. There are many varying opinions on these two terms, so what is the difference between rich and wealthy?

The Difference Between Rich and Wealthy

Although Merriam-Webster Dictionary lists rich and wealthy as synonymous, both have conceptually different meanings. You might be rich with a large sum of money in the bank, but it does not mean you are wealthy. However, if you are wealthy, you could also be rich. Why is this?

What It Actually Means to Be Wealthy

When you close your eyes and imagine someone who is rich, what comes to mind? Likely, you’re seeing something similar to what I see, which is a large beautiful home, a luxury vehicle (or two), a spa-like backyard, and an overall extravagant lifestyle. While this may be accurate, there is one thing we don’t know about this mystery person: their financial plan to maintain said lifestyle.

Being wealthy is more than just having a lot of money. In fact, the difference between rich and wealthy is fairly simple; it all comes down to mindset, knowledge, and resources.

Dandan Zhu, Headhunter, Career Coach, Investor, and Podcaster Daily DANDAN, explains in this May 23, 2017, Quora post that being wealthy is not about how much you make but rather the strategies you take to make more than what you spend. She states that wealthy people will fare well in the following categories:

  • Saving. It’s hard to build wealth if you spend every dime you make. Zhu uses Warren Buffet as an example, who still lives in the Omaha home he bought in 1958 for $31,500.
  • Income Generation. Never stay in place in your career if you want to be wealthy, even if you’re already making six figures. The wealthy are always looking for ways to advance and to add various sources of income to keep their finances healthy.
  • Learning. Knowledge is power, and Zhu adds that part of this is learning how to deal and handle life’s setbacks. The response to such is also part of what separates the rich from the wealthy.
  • Investing. Zhu suggests that due to inflation and taxes, making your money work for you (instead of the other way around) contributes to wealth. This does not have to be the stock market; it can be assets, real estate, retirement funds, and so on.

New York Times columnist Paul Sullivan wrote in his book, “The Thin Green Line: Money Secrets of the Super Wealthy,” that people are wealthy because they have created financial security for themselves. In other words, according to Sullivan, they are in complete control of their money.

In an interview with Jessica Khorsandi of DujourNews.com, he says, “Rich to me is a number. It’s a bank statement, a broker’s account, perhaps it’s a number associated with the value of your house or the price of your car, but it doesn’t give you any security. It doesn’t tell anymore about your level of comfort in life. As we saw in 2008-2009, those numbers weren’t always enough.”

If that’s not an eye-opener, I don’t know what is.

Conclusion

When you only focus on what you have rather than how to build stability, you’ll find you’ll lose yourself fast. Many celebrities and professional athletes, such as Allen Iverson, have made this mistake, getting caught up in the lifestyle and materialism rather than creating financial freedom for themselves. Now, instead of living the dream, these individuals are finding ways to pay for their once lavish lifestyles and debts.

Instead of trying to earn your first million, put your attention toward improving your net worth, creating multiple streams of revenue, and building strong savings for cases of emergency, other investments, and the like.

What are your thoughts? How do you define the difference between rich and wealthy? 

Cheap Date Night Ideas

cheap date night ideas

It’s the weekend, which typically means (for those of us that are lucky) quality time for relaxing, with family, or, hopefully, with a significant other. But, when on a budget, you may feel trapped in your home. The good news is that you can still enjoy special time together without overdrawing your bank account. You just need some cheap date night ideas, and I am here to help.

It’s been commonly stated that 50% of marriages are likely to end in divorce, but Time magazine showed us the bright side recently in this article titled, “Divorce Rate in U.S. Drops to Nearly 40-Year Low” posted late last year. In the article, Time writer Abigail Abrams shared data showing that the U.S. divorce rate has actually dropped for the third year in a row while marriage rates have increased. While this is great to hear, it does not take away from the fact that marriage, and all relationships for that matter, take work. But, when money is tight, it’s hard to imagine how you can keep the chemistry alive when you feel confined to your house. Because I’ve been there, I put together some cheap date night ideas that you can use with your significant other this weekend:

Cheap Date Night Ideas:

1. Turn Your House Into a Spa.

Couples massages sound fabulous, but they certainly are not cheap. Instead, turn your house into a spa and give each other massages. Play relaxing music, light some tea candles, give some foot rubs and put some bubbles in the bathtub. Have kids? Ask a friend or family member to take them for the night so that you have the house all to yourself.

2. Make That Fancy Dinner at Home

Nothing beats a night out for a delicious and fancy dinner, but your bank account may disagree. There is no denying that it is cheaper to just eat at home. But, you don’t have to necessarily sacrifice the fanciness. If you want to really give that “going out” effect, make a little menu for you and your partner to look over. Make it even more realistic by incorporating a choice of a fish or white or red meat. Include an appetizer and dessert. Peruse your cupboards for items you may already have (spices, herbs, etc.) and base your recipes off ingredients you already mostly have. Then, take a trip to the grocery store together to buy the ingredients you need and cook the meals together. Dessert can simply be a low-cost ice cream or cake.

3. Go Out to a Local Play

Many areas have local and smaller theaters that are just begging for you to attend. You will likely be pleasantly surprised at how much you will enjoy the show put on by local actors. Additionally, you could attend a high school play together. This not only supports the students but gives you another cheap date night idea.

4. Take a Hike

Of course, I mean this in the literal sense. Not only will you be promoting healthy activity together, but spending time in the woods encourages you both to unplug and only focus on each other and the beauty around you.

5. Go Camping

Have an entire weekend to yourselves? Go camping. It is really cheap to go to a campsite and pitch your own tent. Not to mention, camping is also a great way to bond. My beau and I like to make up our own games as entertainment when we go, so we are never bored. Plus, we laugh about the silly things we do or talk about later, which helps to strengthen our relationship even more.

6. Go On a Late-Night Picnic

Keep the adventure and excitement alive by choosing a spot nearby to go on a late-night picnic. You don’t even need much; just picnic on the roof of your car and look at the stars together. If you live near a lake or pond, park yourselves there. Play the 20 questions game, which is where you have an idea, person, or thing in mind and the other person has to guess what it is in 20 questions. You’d be surprised at how fun this simple game can be with your significant other.

7. Go for Breakfast Instead

Cheap date night ideas do not have to occur at night. Breakfast is much cheaper, so you can still enjoy going out to eat together without the added costs. Coffee dates can even be your entire date.

8. Play Games

Dust off your favorite board games and tap into your inner youthful self by playing board games together. You could even invite friends over and have a double-date, if you will, by hosting a game night at your house. Another game option would be to play tennis, basketball or other sports either at your local community center or parks.

The above are just a few ideas to help you save money while also enhancing your relationship. What would you add to the list? 

Cool and Cost-Effective Birthday Gift Ideas for your Girlfriend

couple-2180541_640So. This is the year – the year when everything is going to go completely right, and you’ll have the perfect gifts for your girlfriend for every occasion! Unfortunately, things have turned out to not be so simple – money, shopping time, the necessity for secrecy while at the same time trying to squirrel out what exactly your girlfriend wants and expects….

It’s a bit of a minefield, and as the internet forums which always seems to spring to life around times of gift-giving, not everyone is as good at giving gifts as they seem to think they are. It is harder than people think, finding the best present ever.

But there is hope! This article will detail some of the best presents to get in greater detail, but for now, some general points: what is true for people in general will most likely also be true for your girlfriend – she would probably prefer a gift of something she wants rather than something she needs in her day-to-day life (the cliché of getting a woman a hoover as a present is a cliché for a reason, after all). This is obviously something which varies from person to person, and you will know better than a random article writer, but generally, women don’t like to be reminded of everyday things and needs on the day which is supposed to be dedicated to her feeling special.

You should definitely listen for hints as to what to buy your girlfriend for her birthday – she will make sure you know what she likes, and what she wants – but don’t make the mistake of thinking that everything your girlfriend mentions is something she wants to be given!

Jewelry

Do we really need to explain why jewelry is a good gift?  Of course we don’t, but let’s go ahead and review: jewelry is pretty, and so sparkly….it is also something that many women might not buy for themselves, since it is not strictly a necessity, which makes it ideal to buy for a gift.

There are so many different types of jewelry as well – there are rings (be careful with this one, though!!), necklaces, bracelets, earrings, with there being seemingly endless permutations on those basic categories. Costume jewelry is generally cheaper (and showier, hence the name) than other kinds of jewelry, because of the materials used in its construction, but the internet has opened up a wider avenue of possibilities to the average buyer.

Alcohol

Alcohol is a safe bet for probably the same reasons that jewelry is, as can be shown in the appropriate sections like the personalised gifts from Gifts To Last. There are probably even more types of alcohol than there are types of jewelry, though the guidelines on which type of alcohol to get which person are at least less stringent.

In addition to the alcohol itself, there are endless amount of paraphernalia which can be given to people who enjoy their drinks – glasses, cocktail shakers, measuring cups, recipes…

The list goes on.

There you have it!  This is only the beginning, but hopefully this article will give some indication of what to do (and not do) when it comes to buying gifts!