They are NOT the same thing! I repeat. They are NOT the same thing. You can be rich but not wealthy. You may be wealthy but not rich. DO NOT get the two confused. Allow me to break it down for you.
The Rich make high incomes. That's their game. Usually they make this high income from a high-level paying job. So, I'm talking about Doctors, Lawyers, Engineers, Corporate people, among others. People with a high-level education and high level jobs. In order to earn this income they have to spend many hours making it (60, 70, sometimes 100 hours a week!) Now, what they have accomplished is amazing, don't get me wrong. Becoming a high-level professional is no easy feat and if you find yourself in this position it's amazing. But you are NOT wealthy.
The wealthy may not necessarily be rich but they have money working for them to cover their lifestyle expenses. They invest in assets that allow them to buy back their time. They have multiple sources of income that work for them, so when the financial crash comes, or there's a global pandemic, they don't have to worry about losing their jobs because they have enough money working for them through their investments. With money working for them, this affords them more time to learn new skills and execute on more creative ideas.
The wealthy, therefore, are much more adaptable to the unknown future that we ALL have to deal with. The wealthy do not have to sacrifice or even downgrade their lifestyle when the crash comes because, again, they have multiple sources of income. The Rich, on the other hand, may have to sacrifice their lifestyle if they lose their jobs because it's the only thing affording their lifestyle!
The difference between being rich and wealthy is subtle, but it's a big deal and it's important to know the difference if you are to upgrade your financial literacy.
Now that you know the difference, you may use the income that you make from your 9-5 job a little differently. Hopefully you'll take all the extra income that you have left over after paying expenses to save and more importantly INVEST.
Invest in assets that will give you capital gains and/or cashflow into the future. Assets like: Real Estate, Index Funds/Index Fund ETF's, Commodities, Cryptoassets, among others. Even think about building a small side hustle in your free time on the weekends. Who knows? You may be able to scale it to a level where you could do it full time instead working a 9-5 you hate. When you have a wealth mindset the possibilities become numerous.
You may be rich in income, but poor in assets and in the long run it's your assets that will allow you to buy back your time and allow you to live the life you truly want. They'll even help during tough times like we're in now.
If there's one thing to take away from this blog post, it's this and I'm going to quote Robert Kiyosaki from his book Rich Dad Poor Dad:
"A person can be highly educated, professionally successful, and financially illiterate."
Become both rich and wealthy by increasing your financial literacy and you'll have the tools to adapt to the future despite financial crashes or global pandemics.