How to be Wealthy, not Rich
Rich is now. Rich gets money and spends it. But rich is fleeting and easily lost. Wealthy is long term. Wealthy spends money on ways to earn more money. Wealth is built to last for your life and future generations.
“Do you want to be rich?”
“Of course,” you reply.
“Do you want to be wealthy?”
“Yeah, that too,” you respond. “Aren’t those the same thing?”
No. Not at all.
In order to have money in the bank, freedom from the stress of bills, go where you want and own what you desire, you need to understand the difference.
Rich is now. Rich gets money and spends it. But rich is fleeting and easily lost.
Wealthy is long term. Wealthy spends money on ways to earn more money. Wealth is built to last for your life and future generations.
How do you become wealthy?
It takes two things: hard work and reinvestment.
#1 Work Harder
Do your best at the job you have. Do what it takes to earn more and get promoted. When you’re done for the day, spend time on something extra.
Build something that will earn money when your hands are not on it.
Amazon is a great choice for me. A successful product can earn five to six figures a month with little maintenance. Follow-up with customers is key, but that can be automated with Kibly.
Start a business or buy some real estate. Whatever works for you, see it and do it.
You need to work harder and think harder than the next guy. Spend very little time with your feet up. Keep your eye on your goal of success and dedicate your energy to that.
The best news about working hard? You’ll have little time to spend money. You’re too busy earning it.
#2 Plant Seeds
Once you’ve earned some money on top of your living expenses, are you ready for a vacation? Are you ready to congratulate yourself for your effort?
Not yet, unless you want rich to become poor. We’re trying to make rich into wealthy, right?
Spend your money on things that will earn more money. Start another Amazon product. Invest in a second business. Create a service that can be sold over and over.
That’s where Kibly and the Azon Academy came from. They each required equipment, research, programming, and labor to produce. But once built, they serve customers continually with little upkeep.
Before you let your money out of your hand, ask if it will come back bigger and stronger. If you rent a vacation home, you’ll never see those dollars again. If you buy a building, you can rent it out every month or sell it when it appreciates.
Yes, I understand I’m standing in front of my Lamborghini while advising you against spending your money on depreciating goods.
I didn’t treat myself to an exotic car until I spent over two years planting seeds. Now that those seeds are sprouting in the form of ten Amazon companies and more, I can buy a sweet car without stifling my growth.
I resisted the temptation of an expensive sports car for a long time.
Do the same. Work hard to earn money. Use your imagination and the experience of others to find a way to create passive income. Reinvest your earnings in your business.
It won’t be easy. Pain today to gain tomorrow. But when you get there, it will be worth it.
Do you want to be rich? Not just rich. Be wealthy.
This post originally appeared at the Good Men Project.
Photo: Pictures of Money/Flickr CC 2.0