Rich vs Wealthy. Is there a difference? A friend shared with me an anecdote a long time ago.
He said, “Rich people brag about how much they spend, and poor people brag about how much they saved.” I laughed in agreement, thinking he was right.
What does it mean to be wealthy?
A person’s wealth is not measured by how much they actively make (i.e., a full-time W2 job). Instead, their wealth is measured by how much time their money can buy them.
However, living off one’s savings without actively working does have a time limit. That is why wealthy people know to invest in assets, such as real estate, stocks, or royalties, creating passive income.