Rich vs Wealthy
The distinction between being wealthy and being rich is not always clear, but someone who is rich would always rather be wealthy. Join us this week as we dive into some of the differences between those that are rich and those that are wealthy:
The Value of Time
There are plenty of people with more than enough money, but not everyone has the freedom to do what they want, when they want. Host Andrew Baxter notes that even in the finance game where everything boils down to dollars and cents, it is time that is the most valuable of all. One of the key differences between the rich and the wealthy is that the wealthy are now in a position where they do not have to be working all the time and have the freedom to choose what they do with their time. This only works when you have your money working for you and is not so much the case when you are having to work seemingly endlessly for your money.
A mainstay of Australia’s rich list is Andrew “Twiggy” Forrest, who is also one of Australia’s most influential people. Twiggy is most well known as the previous CEO of Fortescue Metals, where he is now working on revolutionary technology for clean energy. Host Andrew Baxter has followed Twiggy’s exploits for a while and notes that although he is an extremely rich man, Twiggy is wealthy because of his ongoing passions. As a man with plenty to prove, Andrew Forrest has always managed to silence his critics by achieving what he has set out to achieve. Now, he is able to pursue his passion projects, which may not be as profitable as Fortescue was for him, but the money is no longer a major issue.
On the previous point, Twiggy now has all the time in the world for what is truly important to him now that money is of little concern.
Qualitative vs Quantitative
We can always determine the quantitative factor simply by looking at the numbers. How much money someone has is easy to measure, but how much is enough? Although there are people who are only interested in money, it is hard to accept someone as being wealthy if they forgo everything else in their lives beyond the numbers on the screen. Andrew Baxter was in the camp of pursuing riches as a younger man, but as a seasoned veteran and family man, his interest have shifted to the more qualitative side of life. This varies for different people whether it be a hobby, family or otherwise, someone who is truly wealthy is rich outside of just money.
The pursuit of money itself is never satisfying as there will almost always be someone with more. Wealth is a reflection on how comfortable you are with yourself and your level of fulfilment regardless of others having more money than you. Overall, wealth is a state of mind rather than simply chasing the dollar signs.
Chasing Wealth, Not Riches
When we are young and ambitious, wanting to get rich can be an appealing prospect. At some point however, the switch needs to flick for going from rich to wealthy. Host Andrew Baxter cites strong relationships in his life being the push for wealth over riches. Whether it be marriage or children, finding a reason to buy back your time is an important motivator for becoming wealthy. Instead of chasing dollar amounts, wealth truly boils down to being able to spend your time with the people you want to, doing the things you enjoy doing.
How to Achieve Wealth
Andrew Baxter’s advice – know what you want. Before striving for something, it’s important for knowing what you want and setting a roadmap to get you there. To keep perspective, you also need to acknowledge what you have. Sometimes you have a lot more than you may think, so it is vital to know if you have enough to live the life you want.