By Paul Yung
What’s the difference being rich and being wealthy?
When I was younger, I often saw with envy and admiration at the person driving a beautiful sports car, wearing a beautiful watch or using branded goods. This person must be rich and successful to blow millions of bucks on a car!
Being “rich” generally means having a significant amount of money or assets, often in a way that is visible or flashy. Richness can be temporary, there are “new rich” or those who prioritise showing their financial success through status symbols. Money talks.
Wealthy individuals have a more sustainable, long-term accumulation of assets and resources. Wealth implies having the stability, security, and often a legacy to pass on to future generations.
Wealthy people prioritise investments, real estate, education, and philanthropy over being flashy. True wealth exists confidently and comfortably without the need for external validation.
Ever heard of the story of the unassuming uncle walking into a property gallery who bought properties in cash? Wealth whispers.
This dichotomy goes beyond mere economic terms. This concept also touched on attitudes, behaviours, and lifestyle choices that reflect deeper societal values and personal philosophies.
Understanding this dichotomy offers insights into how people perceive wealth and how they choose to display it, or not.
The phrase “money talks” refers to those who are ostentatious in their spending and lifestyle. We observe this in pop culture, where celebrities and influencers flaunt their wealth through luxury goods, exotic vacations, and expensive lifestyles. The visibility of their wealth is not just about personal enjoyment but also about establishing social status and influence.
There are several reasons why those who are rich might choose to be loud about their wealth:
- Social Status: Displaying wealth is directly tied to social status. Being seen with the latest luxury items or living in the most expensive neighborhoods signals success and power.
- Insecurity: Sometimes, loud displays of wealth stem from insecurity. Those who are new to money might feel the need to constantly prove their status, both to themselves and others.
- Consumer Culture: Modern consumer culture often equates spending with happiness and success. The more one can buy, the more successful they are perceived to be. This culture encourages the rich to spend lavishly and publicly.
- Social Media Influence: Platforms like Instagram and TikTok have amplified the tendency to showcase wealth. The desire for likes, followers, and social validation drives many to flaunt their riches.
In contrast, “wealth whispers” refers to the tendency of truly wealthy individuals to be more understated in their lifestyle. Their wealth is often tied up in investments, businesses, and other assets that are not immediately visible to the public eye.
Several factors contribute to why the wealthy might prefer to keep a low profile:
- Security: Flashy displays of wealth can attract unwanted attention, from thieves to the IRS. By keeping their wealth under the radar, wealthy individuals can protect their assets and personal safety.
- Confidence: Those who have generational or well-established wealth often have high levels of self-confidence and do not feel the need to prove anything.
- Long-Term Perspective: Wealthy individuals often think in terms of legacy and long-term financial stability. They prioritise investments, philanthropy, and other ventures that will sustain wealth across generations rather than spending on short-term luxuries.
Now, I want to say that the above is a generalisation. There are of course, wealthy people who enjoy luxuries, nothing wrong with that. And there are those who like to show off luxuries who could be truly wealthy.
I find this topic fascinating because, it seems like there are ideas and lessons on what to do if you are rich but there are no concrete lessons from the wealthy. After all, how would we know when someone is wealthy? A wealthy person, is the last person who will put up their hands to say that they are wealthy because they are focused on building wealth!
Rich on the other hand, is tied to the idea of “keeping up with the Joneses,” where the pursuit of status through material possessions. This cycle is endless and can lead to a cycle of debt, stress, and dissatisfaction.
Here’s my takeaway. The next time you see someone driving a flashy car, the only thing you know about this person is that they have taken on that amount in debt to finance the car. Sure, they must have a certain level of income to finance the repayment, but are they wealthy? Maybe, maybe not.
Aim for financial goals and luxuries based on your situation, your stage in life and what you and your family enjoy. Forget what the Jones’s like, figure out what you love and do that instead. Figuring out how you can what you love, with whom you love for as long as you love, that’s wealth.
