|Posted: June 19, 2009, 2:50 am - IP Logged|
Where is the line between rich and wealthy?
IMO, being simply rich is like a lottery winner or people who inherit a large sum of money or a lot of celebrities and athletes or other professions. They have a lot of money that they've come into in a short time but that's it and they do nothing with it but spend, possibly with a disconnect between what they have and how it's managed, if it's managed at all and probably won't last over the course of their own lifetime let alone the following generations. Rich are the ones who go off and buy a bunch of useless crap without thinking that will only decrease in "value" over time, if they don't destroy it first.
Wealth is something that's amassed along the course of a lifetime of having your money work for you, through good investing over the years be it in the stock market, bond market, real estate market or whatever and can last for generations, though of course it doesn't mean it will since there can be many factors that can cause it to be lost also but generally can withstand the course of several generations and so on. But basically being wealthy is more than just having more money than you know what to do it. You can be wealthy without first becoming rich but it can take a long long time, it's a step up from being simply rich but it's a step that's possible to skip. A big component is how involved one is, becoming wealthy requires work and more than just having someone else do everything for you, you need to take a hands on approach. For example, Paris Hilton is rich, her great grandfather was wealthy, her grandfather continued that wealth and could also be considered wealthy.
You can't predict random.