Summary: Many people think that being rich and being wealthy are the same thing. They’re related but not the same. You see, the rich have lots of money but the wealthy don’t worry about money.<br> <br> What’s the difference?<br> <br> Join me as we take a look and compare the two.<br> <br> And if you missed last week's episode, be sure to listen to Financing for Foreigners and the Self-Employed.<br> <br> Enjoy the show!<br> <br> - - - - - - -<br> <br> Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing.<br> <br> Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here's how.<br> <br> See all our available Turnkey Cash-flow Rental Properties.<br> <br> Please give us a RATING & REVIEW (Thank you!)<br> <br> SUBSCRIBE on iTunes | Stitcher | Podcast Feed <br> <br> <br> The Difference Between Rich and Wealthy (and Which is Better)<br> Today's show is about the difference between rich and wealth, and which is better. Yes, there is a difference between the two. You see many people think that being rich and being wealthy are the same thing. They're related, but they're not the same. The rich have lots of money, but the wealthy don't worry about money. That's the key distinction. While the rich might have lots of money, they may also have lots of expenses that keep them up at night or they might have a high paying job, but they have to get up every day to go to work and possibly have the fear of getting laid off or getting injured and not being able to work for a long term. Either way, this situation can be stressful because you depend and rely on your regular income.<br> <br> The wealthy on the other hand don't have these worries. Why? What's the difference? First, let's look at the definition of wealth. The definition of wealth can be defined as the number of days that you can survive without having to physically work and still maintain your standard of living. For example, if your monthly expenses are let's say, $5,000 and you have $20,000 in savings, your wealth is approximately four months or 120 days. Therefore your wealth is actually measured in time, not dollars.<br> <br> <br> <br> What you want to do is build a business and invest in assets like income producing real estate to increase your cashflow. You want to add assets to your personal balance sheet that generate monthly income. Once that income from your assets exceed your monthly expenses and it does this on a predictable basis, then you're no longer rich, you're wealthy. You're out of that so-called rat race. This is what I refer to as true financial freedom. It's being out of that rat race. Now, you've actually created streams on income. This income can cover all your expenses and support your lifestyle, support your cost of living, support your monthly and annual needs.<br> <br> Ultimately, it's not how much money you make that matters, but how much you keep and how long that money works for you. There are a lot of people out there who make a great income and I know many of these people, yet they're not wealthy. If they lost their business or they got injured, there's a high probability that they wouldn't last for more than six months to a year. There are people out there who come into these chunks of cash, who simply blow it on consumer items like bigger homes and cars and boats and vacations or whatnot. Many go into deeper debt, as in bad debt in the process of doing this. This behavior is actually what separates the rich from the wealthy.<br> <br> The smarter thing to do is to use those funds to build your assets to increase your cashflow and then let that cashflow pay for those consumer items and those luxuries. What some people do to afford new things is to budget or live below their means. I'm sure you've heard this statement before. I don't want to necessarily point fingers,
