Words Into Works 44 | Being Rich vs. Being Wealthy

In his book, The Psychology of Money, Morgan Housel shares a distinction between being rich and wealthy. 

The former, says Housel, is about income. To borrow an example from the book, a person driving a $100,000 car is likely rich due to a certain income level needed to afford the monthly payments. Rich people, says Housels, often go out of their way to make themselves known. And we notice.

Wealth, by contrast, and ironically, is hidden. It’s income not spent. Homes not purchased. Watches not bought. Housel calls wealth “an option not yet taken to buy something later.” “Its value,” writes Housel, “lies in offering you options, flexibility, and growth.”

Self-improvement offers a similar distinction. Those who post workout selfies or tweet about a new morning routine are, to borrow the above term, rich. There’s a desire to be better, of course, and that’s commendable, but at what cost when it must be seen and validated in public? If the effort falls on dear ears, oftentimes, so, too, does the desire to continue and improve. The instant gratification, it seems, is far too good to ignore.

Those who hustle in private, far from the eyes and ears of disinterested friends and followers, seek wealth. Their motivation is to bear the fruits this mindset has to offer. Options. Flexibility. Growth. The knowledge that one can afford to miss a workout or two and still make improvements because time is on their side. Those who seek wealth are the best role models you have never met; you just would not know unless you talked with them.

Naval has the final word on the matter, “Seek wealth. Not status.”