Rich vs. Wealthy - What Do These Terms Mean?
Have you ever looked into the topic of being "rich and wealthy"? Or rather: do you know the exact definition of these two terms?
What differences are there?
First of all, a distinction is made in how these terms can be classified. "Being rich", or riches, is tied to certain earnings, such as an earner's gross or net income. "Wealthy", on the other hand, refers to the share of goods and assets, both tangible and intangible, that an earner has at their disposal.
What is "more telling" about my riches?
Researchers in this field take the view that it isn't earnings that say whether someone is "rich and wealthy", but solely assets, which can be more reliable and lasting. Why is that? For one, they can be inherited and help secure against life's risks, and the likelihood of losing a well-paid job is much higher than that of losing the safety net provided by your respective assets. The rich person isn't the one who owns many cars and vacation homes, but the one who doesn't have to work, or at least not much, and can thus benefit from the income and returns of their assets, and most of all from their precious time.
In summary, all the speculation about your annual income and monthly salary, which supposedly define your "being rich", are just numbers of varying size. What is certain, though, is that these numbers are your prerequisite for reaching all the goals you have in your professional career. Your "being rich and wealthy" only truly begins with building up assets.
How do I get such assets?
If there were an exact answer to this question, the whole topic would unfortunately lose its point, and anyone could snap up such wealth. That's why it remains a formula for which there is still no universal final solution, only individual calculation paths that you have to work out for yourself. As the word calculation path itself suggests, you have countless ways to grow and advance from your calling or your profession. There are so many different ways in which successful people have achieved this, but for everyone the definition of "being rich and wealthy" differs enormously down to the smallest details. That's why you have to decide for yourself which goals you want to reach, and at what effort, in order to be "rich and wealthy".
In the eyes of the government, poverty and standard of living are determined by income. Being "rich and wealthy", and thus good old assets, has no upper limit.