Would You Rather Be Rich or Wealthy?
If you are a high income earning individual why is it that you spend more time at work than enjoying the things that you’d rather do? Even if you’re the average working person, you’d probably find out that you can never stop working. Do you find yourself three months away from bankruptcy? Do you think being wealthy is actually about money?
What’s the difference?
Many people don’t know this but being rich is different from being wealthy. Rich is a matter of money whereas wealth is a matter of time. Specifically, your wealth is how long you can live on your resources without working. Thus, if you have a monthly expense of NZD1000 and have NZD3000 in savings, you have three months of wealth.
What you do in your spare time matters more than you think
Whether you are a hairdresser in Hamilton or an accountant, everybody has the same amount of time in their hands. There are only twenty-four hours in a day and what you do in your spare time determines your financial wellbeing. If, after work, you go grab a beer and watch television while grumbling about your lack of money then you’re wasting your time. But what if you use this time to start a part time business or some freelance work, instead? Keep the extra money as an investment fund and eventually, invest your way into wealth.
Look for investments that give you cash flow
When people think of investing, they often think of buying low and selling high. That’s one way of doing it. The other way is to buy and hold and investment while earning something from it. Buy a house and rent it out, or buy stocks and earn from its dividends. The goal is to earn enough from these investments every month to cover your expenses. If you can sit back and enjoy life without working yet still earn enough from your investments, then that’s when you become wealthy.