Are You Rich or Wealthy?

Author: Vanessa Stoykov
Category: Financial Freedom

There is a phenomenon on social media at the moment in China called ‘flaunt your wealth’. The idea is people lying next to their luxury car as if they have fallen out, with their personal belongings from their bag spread around them. These items are luxury products that prove how much they have to spend. Their hashtag on Instagram is #fallingstars

It occurred to me when reading about this in the press that this is a prime example of people who want to show that they are rich. But the bigger question is – are they wealthy?

In today’s world of brands and relatively easy access to credit, it has not been too hard for people to look like they are rich. European cars, clothes with high end labels all over them, and jewellery and handbags to give the display of money.

What has not always gone with this display is real wealth. While rich may be all the luxury items that are displayed to the world, a lot of the time those people have no real assets that they own, and no liquidity or cash if they needed it. Many are living from one pay cycle to the next while paying off all the beautiful things they own – which instantly lose value and keep them in a cycle of debt.

While the #fallingstars might be the extreme of these examples, the different between rich and wealthy is obvious at home too. It’s why as a nation we are in a massive amount of personal debt, and mortgages are so high. While many of us aspire to the finer things in life, much of the time we can’t really afford them. So what starts as ‘treat yourself to the best’ becomes a life trapped in an endless cycle of paying for what you never could really afford.

Wealthy people have multiple income streams, lots of assets they own and they keep their overheads as low as possible to maintain a standard of living that is comfortable but not wasteful.

Those who are rich have lots of leased or financed items they never own, lots of debt, and are constantly juggling to pay one thing or another. While rich might look more glamorous on the outside, it is a whole lot better to be wealthy.

A simple trip to the mall will demonstrate how easy it is to fall into the trap of wanting things you don’t need. Of justifying a high price with an “I deserve it” attitude. In fact, malls are some of the most dangerous places to be until you truly understand the difference between rich and wealthy.

Because wealthy people can walk through a mall, have a purpose for being there, and bypass everything else unless it represents true value. Whereas someone with a rich mindset will be sucked into whatever is the latest beautiful thing they see.

I have decided in my 40’s that being wealthy is my true goal. Of course getting there isn’t easy. It requires budgeting, saying no, sacrificing and making sensible decisions. It’s definitely the harder road in the short term. But long term, this mindset is the real ticket to a much easier life. So, if you have been acting more like someone who is rich than wealthy, maybe it’s time to assess what you really want out of life. It is still serving you and bringing you happiness?

Because wealthy equals freedom – something we all want.

Here’s to a wealthy mindset

Until next time,

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Each day I wake up excited to inspire everyday people to open up and take control of their money, regardless of their history, goals, or savings amount. About Vanessa >>

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Authors

Vanessa Stoykov

Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.
Kathy Skantzos

Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.
Shayne Sommer

Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.
Antoinette Colbran

Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.
Michael Crooks

Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.
Kim Payne

Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.
Rebecca Pritchard

Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.
Antony Perring

Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.
Julie Hyde

Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
Joshua Pennell

As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.
Sid Lal

Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.
Lou Johnson

Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.
David Rae

Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.