Skip to main content

The Rich and The Wealthy

There is a difference between being “rich” and being “wealthy”. The professional athlete that signs an $80M deal over 8 years is rich. The guy that signs his checks is wealthy. If given the choice between the two always choose wealth creation.

The litmus test in use is to empty your bank account, take off for a month and tour the world. If you come back and your account has $0 in it and you have over $1M but under $20M in your pocket then you are rich. If you come back and your account has more money in it than what you took when you left and you have more than $20M in your pocket then you are wealthy.

Most super wealthy people I know don’t keep much money in their liquid account. Maybe 10% of their total assets at most. Some are only 5%. Their money is invested in hard assets, money generating companies and other things that produce a return.

The key is “make money while you sleep”.

If you check your bank balance when you go to bed at 10pm and wake up at 8am and check it again, if the balance is the same, you may be rich. If the balance is higher than 10 hours ago then chances are you are wealthy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.