by JPM on September 1, 2011
From a pure financial point of view, you are rich when you have enough money to buy nearly everything you want today as well as in the future. However, you are wealthy if you have enough money to buy everything you want today as well as in the future, and still have a great deal left over. (Read that again!)
Here’s what you’ll learn:
- Wealth – it’s all relative, read the story below to see why!
- We’ll also take some lessons from the richest man who ever lived.
Generally, and this is what I agree
with, the word ‘rich’ refers to money, whereas ‘wealth’ refers to something
more than just money i.e. all the essentials in life – a total package of love,
good health, good living, good job, great friends and loving family,
spirituality, joy, peace of mind, plenty of time, combined with money and
contentment with yourself and what you have. Being wealthy depends on what YOU believe
is enough to make you happy, the amount is not the key.
For simplicity sake, we’ll assume
wealth to refer to worldly wealth – not just being rich, but other areas of
wealth, spiritual, emotional, physical – all inclusive in the pursuit of
happiness! (Please do watch the film, The Pursuit of Happyness – it’s really
worth it!)
It’s all relative.
Imagine this – you’re an educated
person from an urban city, a well-paid professional. You’re on a trip to a
rural place far off in Africa to set eyes on the un-spoilt surroundings and on
your way, you meet a tribal leader, respected by all the locals and you talk
with him in a newly-created sign language and help of a guide.
During the conversation, the leader
shows interest to know more about you, your country and how wealthy you are – a
matter of curiosity for him – a person from such a far off place to come and
see him must have a lot of wealth!
You explain to him that your assets
include – two homes, an excellent job, latest car, a professional camera that you
are holding – showing it to him. The leader nods his head in acceptance and
then frowns in disappointment and looks to the other elders sitting on the left
and right, and starts a discussion with them. The guide looks at you, and tells
you that the leader thinks you are extremely poor, because you have no cattle,
not even one! Wealth is measured by everyone differently; each person has
his/her own way of deciding how wealthy they are. Across countries and
economies, what might be a luxury for some is not for others.
That’s wealth – it’s relative!
Someone once told me that the
difference between the rich and the wealthy is that the rich need to impress
and the wealthy need to be impressed. In a way it does seem to be true. I know
of many friends who in order to keep up with the crowd or stand apart – try to
impress us, they drive fancy cars, live in a fancy house, wear fancy clothes
and eat at fancy restaurants – anything to show that they are well off.
The rich become flush with money in
a number of ways. They may inherit it, earn it in a few short years as a
professional sports player or entertainer, or invent a new technology that is
worth millions of dollars, or simply earn it over many years as a professional
or a business owner or even, because they are lucky, win a lottery. So with all
this money, they buy assets, generally those that depreciate fast.
On the other hand, wealthy people
buy assets that can be converted to other assets i.e. value-creating
assets. Those assets can be tangible like your business, your second house and
intangible, like your knowledge, skills or even peace of mind!
The difference between a wealthy
person and someone who is simply rich is that a wealthy person has sustainable
wealth. A wealthy person will always be wealthy, because he is planning for
generations, whereas someone who is just rich will only be so for a short
period of time until the money is exhausted.
So the question is, not how to
become rich, but how to become wealthy?
Wealthy people know how to make
money. Once you have the know-how, you can build sustainable wealth. Wealthy
know that money comes and money goes – it’s not a big deal. But they also know
how to generate wealth, when it’s gone.
The best example is written down in
history, by the richest man who ever lived. He obtained his wealth through
knowledge and valued knowledge more than wealth or money. That man was none
other than King Solomon. He was extraordinarily wealthy, even by today’s
standards. But he was also extremely wise, the wisest who ever lived.
When he first became king, when God
asked of him what he wanted, he asked not for riches, but for knowledge and
wisdom. And throughout Solomon’s writings (please read the Proverbs, there is
one chapter for each day of the month), he lists wisdom and knowledge as the
two most important gifts to ask of God. God gave wisdom and knowledge to help
create Solomon’s great wealth.
You can have a billion or even a
trillion dollars today, but what assurance do you have that you live a life
free of sickness tomorrow – or God forbid, even be around on this earth!?
Let’s admit it… money does matter.
But wisdom and knowledge can create far greater wealth for anyone who desires
it. Are you ready to become wealthy?
