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Wealthy vs. rich: Which one should you and your financial planner be aiming for?

Written by Eric Ebbert CFP®, MBA

On November 8, 2021

Do you want to make a lot of money so that you can live comfortably while travelling the world? Sounds like a dream that many people have. You want to be rich, right? Or do you want to be wealthy? Is there a difference between being wealthy and being rich? Yes, there is a difference. 

If you think you need to make a lot of money to be wealthy, that is a common misconception. In fact, those with a large income, the fanciest gadgets and the most souped-up cars tend to be rich. Wealth, on the other hand, doesn’t necessarily require a large paycheck. To put it simply, being “rich” is determined by how much money you earn while being “wealthy” offers you the ability to have the financial freedom to do what you want with your time.

How to grow your wealth

The great thing about focusing on building your wealth vs. getting rich is that anyone at any income level can do it. Here are some tips to help you build wealth vs. get rich:

  • Stick to a budget — Create a budget and stick to it with the goal to spend less than you make.  
  • Eliminate your debts — If you have debt, use your budget to help you pay it off as fast as you can. 
  • Build an emergency fund — Nothing derails a budget quicker than a large, unexpected expense. Try to save up at least six months’ worth of living expenses. 
  • Save for retirement — Make sure you are taking advantage of retirement-savings options available to you, especially if your employer offers a matching option. 
  • Invest your money — Find ways to invest and grow your money. This may include investing in property or in stocks and bonds. 

Talk to a ProVise CFP® professional about how you can grow your wealth

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about being wealthy vs. rich? Contact ProVise today to schedule a complimentary consultation.

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