Many people are concerned about getting rich. There seems to be a confusion between being rich and being wealthy. People tend to use the 2 words loosely, especially those “motivational” or “money” gurus in the seminar circuit.
There is a slight difference between them, and it is this slight difference that makes a huge difference in the lives of the wealthy.
Between them, their lifestyles are very different. Here, I wish to share the main difference and hope that after reading this article, you will decide to be wealthy, NOT rich.
“What you define, controls your destiny and outcome”, “A confused mind can never decide clearly.” These are my 2 statements that I believe to be true since I started my first career some 25 years ago.
So, my definition of RICH is “that you have just enough money to meet your monthly financial obligations.”
And, my definition of WEALTHY is “that you have no worry for money.”
Most are Rich. Few are Wealthy
If you have a monthly income to pay off your house loan, car loan, credit cards debts, and other monthly household expenditures, then you are considered rich in my definition.
Most people are in this category – asset rich, cash poor, and deep in debts. But this is where you DON’T want to be.
This is because when all your financial obligations rest on your monthly active income, you are in GREAT risk of a financial collapse when your active income stops due to career disruptions, economic recession, or retrenchment.
Most people in this category are living in constant fear and worry, financially and otherwise. They cannot afford to go without their monthly income for too long due to their lack of savings. Their monthly income is their security blanket. Without it, they cannot sleep in peace.
Decide to be Wealthy
This is where you want to be – Wealthy.
To be wealthy is to be free from worry about money according to my definition.
It is this freedom of worry about money that allows you to live life at your own terms. You can choose to do whatever you want without having to worry about where the money will come from.
It is this mind-freedom that allows you to think deeper, look further, and spot more opportunities than the rich because the rich are always preoccupied with money worry and anxiety than opportunities.
As a result, you get wealthier and wealthier. Your net worth keeps increasing over time. Period.
Contrary to popular thinking, to be wealthy has got nothing to do with your education, race, income level, or religion. But your level of desire.
The problem is that most people are just too lazy to think about their financial future. Their desire is simply non-existence. They just allow their boss to dictate their worth with their monthly paycheck. They just allow the economy to decide their next course of action to take. Their tomorrows are the same as their yesterdays. Happy go lucky.
People with this mindset WILL never get wealthy in their lifetime. They need to understand that to be wealthy requires a conscious decision, intense efforts, and lots of commitment to get there.
No one becomes wealthy by accident. Not even lottery winners. History has shown that lottery winners became poorer than before 2 years after their windfall.
Ways to be Wealthy
The fact remains that it is easier to get wealthy now than ever before. Why? There are so many investment vehicles that were “kept” for the high net worth individuals are now available for the regular men and women on the street.
A search on the internet will show you thousands upon thousands of books on the topics of investments, trading, and passive income generation.
As such, there is no lack of investment vehicles or knowledge but a lack of desire, decision, and commitment on your side.
So, what say you? What excuses do you have for not getting wealthy?
Passive Income Streams
To me, passive income is KING. This is the ONLY way to free you from worry about money.
If you do not have any passive income flowing into your life on a monthly, quarterly, half-yearly, or annually basis, then you can never be freed from your financial worry and anxiety. You may be OK for now with your active income, but when your active is cut short, financial crisis ensues in your family.
Wealthy people have many streams of passive income flowing into their lives from investing and trading in hard and soft assets. This is how they became wealthy and free themselves from all financial worry and anxiety.
Bill Gates, Warren Buffett, and George Soros give away billions of dollars annually to good causes, yet they have no worry about where their money will come from next.
This is because their passive income is greater than all their monthly financial obligations. They have very minimal or no debt at all. Their passive income is greater than their active income, if any. They don’t rely on their active income for financial freedom. They know the limitations of active income.
This is where I am most happy for clients of ALGOINSIGHTS PTE LTD who are trading the Forex market with our suite of proprietary automatic trading algorithms as their passive income stream. They don’t even have to watch the market to make their money. What a bliss.
I hope with this article, you would start to think about creating multiple streams of passive income into your life before your active income is being threatened or cut short.
Thank you for reading this blog article.
Wealth to all.
CEO & Founder, ALGOINSIGHTS PTE LTD