A rich person is someone who has lots of nice things. A wealthy person is someone who has lots of money. It’s the difference between looking rich and being rich. A person who looks rich spends all their money on nice things. A person who is rich keeps their money. The reason a lot of people don’t move up in life is because they mistake looking rich for being rich. Looking rich is the biggest roadblock to being rich. This is why many wealthy people don’t look rich. They drive modest cars and live in modest houses.
Being able to look rich and be rich at the same time is not an easy task. If you have 1 million dollars that seems like a lot of money. And it is if it’s in your bank. But what if you want to look rich? 1 million dollars doesn’t go very far. The clothes, the house and the car will quickly devour 1 million dollars and by the end of it you’ll look rich but have nothing left in the bank. It’s as silly as buying a $100 safe to put your $100 bill in. Once you have the safe you no longer have anything to put in it.
And this is where being smart with your money is important. You have know when it’s okay to spend money and when you need to continue building wealth. Instead of running out and emptying your bank account or taking out loans to get the nice things you want you should simply make a list of all the nice things you want. Keep a list of the name of the item and the price. Order the list by what you want first, second and so on.
Now, keep a savings account that is dedicated to buying those things. You’ll find that by being smart with your money it may take awhile to get the first item on your list but as time goes on soon you’ll be accumulating wealth faster and faster because instead of wanting things right now, you waited and paid off debts first. While you were in debt you may have only had $100 a month to put into the savings account. But as you became debt free you may now have thousands of dollars going into your savings every month.
Becoming wealthy is a long term thoughtful goal. You have to take the time to think about where your money is going and where you want it to go. You have to learn patience to wait for the things you want.
