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Get Wealthy, Not Rich
Paperback
Investing & FinancePersonal FinanceGeneral Political Science
Publisher: Lightning Source Inc
Published: Apr 27 2022
Pages: 120
Weight: 0.33
Height: 0.25 Width: 5.50 Depth: 8.50
Language: English
The Royal Academy of the Spanish Language defines wealth (in its first meaning) as the abundance of goods or precious things.
And this is the concept that we all have in mind. A person is rich when he has wealth: a luxurious house, an expensive car (or two or three!), Expensive clothes, trips in first-class ... You know what I'm talking about.
But it is helpful to make the distinction between (a) having wealth and (b) being rich.
To explain the difference, let's use an example: imagine you win the lottery, and you become a millionaire... Wait, how much money should you have to be a millionaire? Well, the answer will change from person to person but let's imagine for the purposes of the example that a million dollars is enough.
Very good, and now let's assume that having all that money, you stop working and dedicate yourself to enjoying life. The next question would be: how much would you spend per month? Suppose you like to live well: take good trips first, eat in the best restaurants, stay in the best hotels and buy yourself a whim other than another: what if a Ferrari here, champagne in Ibiza there, ... and you leave to spend on average $ 50,000 per month.
Well, if you have a million dollars and you spend fifty thousand a month, in 20 months, you have polished everything. Not two years will bring your joy last.
And it does not matter what you spend per month because, in the end, you will be able to live without working for two years, or five or ten. You have wealth, no doubt, but money is going to run out.
Now let's imagine that you generate a passive income that is greater than your expenses. At that moment, you achieve financial freedom, and you can do whatever you want with your time.
When you are done reading this book, you will have gained a lifetime of experience in just a few short hours. The stories are interesting to follow, and the challenging concepts have been made easy to understand. So get ready to broaden your horizons and adjust your expectations because you are in for one hell of a ride!
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