What Distinguishes True Wealth from Merely Being Rich

When we think of wealth, we often associate it with specific desirable traits such as education, class, taste, and character. However, I am no expert in defining these traits. For many, the term "rich" simply denotes a large net worth. But being truly wealthy is about more than just numbers and how one spends their money.

Lavish vs. Modest Spending

Think of the stereotypical rich individual who flaunts their wealth through lavish spending. They possess a supercar, wear tailored suits adorned with big, prominent logos, and live in fancy houses stuffed with expensive, branded furniture. However, this kind of extravagant lifestyle is not a sign of true wealth. It's evident that such displays of opulence are aimed at seeking status and attention. In reality, true wealth is more about the kind of values and habits one exhibits.

True wealthy people prefer luxury that is understated. They might drive a Porsche SUV, Land Rover, or Range Rover – all highly respected but not in-your-face luxury vehicles. Instead of wearing designer clothes with big logos, they prefer modest attire that speaks of taste without shouting status. They live in large, clean homes, but these are not ostentatious. The focus is on functionality and comfort, not flashy displays of wealth.

Another characteristic of wealthy individuals is their frugality. They don't spend money they don't need to spend. They save wisely and invest in ways that build a strong, sustainable foundation for future generations. These individuals are often seen as speculators, but this is not the only way to create wealth. It also involves prudent investment and managing resources in a way that ensures long-term financial stability.

The Paradox of Rich vs. Wealthy

Rich people, on the other hand, often see their wealth as a means to gain status and recognition. While this approach might work in the short term, it rarely lasts beyond one generation. The reason is that without proper management and wisdom, money can quickly become a source of downfall. Many wealthy individuals have been implicated in totally ruining themselves and their families due to poor money management and lavish spending.

True wealth creation, on the other hand, involves building something that stands the test of time. It means investing wisely, whether through real estate, stocks, or other assets, and ensuring that these investments provide a solid foundation for future generations. These individuals often do not seek to parade their prosperity. They own nice cars but might drive ordinary ones or even public transportation. They send their children to government schools or public education facilities out of intrinsic confidence in their own abilities, not relying on their financial status for self-esteem.

True Wealth and Financial Security

Those who live modestly, save for hard times, and don't live presumptuous lifestyles are much more likely to be truly wealthy. They act like everyone else, but their approach to money is fundamentally different. They understand that true wealth is about building a solid financial foundation that will last through generations, rather than just having a high net worth that might crumble due to poor management.

To live a truly wealthy life, one must understand that wealth is not just about having a lot of money. It's about the values and habits that shape one's approach to money and life. It's about creating an enduring legacy that benefits not just oneself, but future generations as well. As Heidi Broberg, a daughter of God and intercessor, once said, 'By grace.' This reminds us that true wealth is not about material possessions but about living with purpose and humility.