Rich versus wealthy.
Is there a difference and which one do you want to be?
Being rich and being wealthy are actually not the same thing.
So let's talk about the differences
between those two and which one you want to become and how to do that.
I am Tiffany Thomas with Wealthy
Tiffany Dotcom, and I achieved financial freedom at age thirty eight.
So if you are looking to achieve financial
freedom at a young age as well, hit that like button and hit
the subscribe button and we're going to dive right in.
There's a reason why I am a wealth mentor and I'm not just focused on helping you
to get rich because being wealthy and being rich are two very different things.
Essentially, being rich means that you will have money for a short period
of time, but being wealthy means you will have sustainable money.
So your money will last for the long term.
The rich may have a lot of money or
pretend to have a lot of money, but the wealthy don't worry about money.
That's a pretty big difference.
Not worrying about money and just having money.
So let's dove in and talk about the rich.
First, there are a lot of rich people out in the world and especially rich
and famous people that we see in the media all the time.
I just want to share with you a few examples of the rich that we have seen.
Michael Jackson, M.C. Hammer, 50 Cent,
Nicholas Cage, Mike Tyson, Dennis Rodman, and the list goes on and on.
If you've read about any
of the experiences that these are rich and famous people have had,
you'll notice a lot of common threads throughout their lives.
For example, a lot of them have spent
pretty much uncontrollably buying multiple properties, buying land,
buying multiple automobiles that are very expensive, buying expensive jewelry or
artifacts, having private jets and whatever their hearts have desired.
They just spent their money and didn't pay attention to it.
You'll also notice that a lot of them got into some bad investments,
which is the complete opposite of what I teach on my channel.
I teach to keep our investments very simple to make sure you understand exactly
what you're investing in so that you can actually make good returns on your money.
And you don't have to worry about being
scammed or getting into some type of investment that may not even be legal.
You'll also see that a lot of them got
into drugs or alcohol or even tax fraud or just marrying for beauty.
They would buy expensive gifts and a lot of other things.
They weren't really prioritizing what they were spending their money on.
They were just spending it on whatever they wanted to, probably to impress a lot
of people that they probably didn't even like or even know.
And they just kept spending and spending, which meant they got into debt and more
debt and more debt and they couldn't get out.
And so a lot of them declared bankruptcy.
And this isn't just for rich and famous people.
It can be just for rich people, those that have a moderate to high income
and they just keep spending their money uncontrollably.
Being rich is a very visible thing because
they have purchased things that people can see.
They can see their new cars or their new houses or their new boats or jet skis or
their really expensive shoes or ties or dresses or whatever it is.
But they're more focused on keeping up with the Joneses or becoming the Joneses
instead of focusing on what's really important to them.
They feel they need to have this outward appearance of a richness.
And a lot of people see this outward
appearance of richness and think that these people are financial successes
when in actuality they are probably swimming in debt.
And if they were to lose their jobs
tomorrow or within the next month, they would be in huge financial ruin
because they're the ones that have to work for their money.
Instead of having their money work
for them, the rich will measure things in dollars versus time.
So if they are making a lot of money,
then they are going to spend that money on different things.
And honestly, the rich could have avoided
filing bankruptcy if they would have just done a few things differently.
For example, if they would have spent less than they made.
And an easy way to track your finances is
by using a free app called Personal Capital.
I've talked about this multiple times
on my channel, but I love it so much I personally use it.
You can hook all of your financial institutions to personal capital.
So that includes all of your credit cards,
your mortgages, your investment accounts, like your 401K or your Roth IRA,
your checking, your savings, everything you can think of.
You can hook it all to personal capital
and have it all in one place and check your spending any time you want to.
It takes maybe thirty seconds to a minute
to update all of your accounts and you can see how much money you've spent.
You can see if your bills have been paid,
everything that you want to see regarding your finances very quickly.
So if you're interested in that, I will leave my referral link below
and you can click on that and get a free twenty dollar Amazon gift card when you
hook at least one of your retirement accounts to personal capital.
So if these are rich and famous people
would use a spreadsheet or a free app like personal capital,
they could have seen they were spending way more than they actually made.
Another thing they could have done was
make investing simple, investing a priority.
That way, they wouldn't be distracted by some of these investment ideas
that people come up with that are actually not really investments that are very
sketchy and they get rich quick scheme, which we completely want to avoid.
Also, if they wouldn't have gotten
involved in drugs or in alcohol, they could have avoided spending money
on those things, but they could have avoided a lot
of unnecessary things that happened in their lives.
And then lastly, basically just having
more integrity. A few simple things would have made a huge difference in their
financial lives and probably in the other aspects of their lives as well.
All right. Let's move over and talk about wealth.
This is building sustainable money that will last you your entire lifetime.
A few examples of the wealthy and famous.
Ed Sheeran, Carrie Underwood,
Kristen Bell, Warren Buffett and Bill Gates.
They have focused on keeping a budget
and actually watching what they're spending and investing their money.
And that is what building wealth is really about.
It's not about living paycheck to paycheck.
It's about financial freedom, building up those investments that will
create passive income for you for your lifetime.
So the wealthy aren't worried about working.
They work because they enjoy working
and they're more concerned about time than dollars.
Unlike being rich, where they have spent their money on physical things that you
can see that they have that they have accumulated.
Being wealthy is more about the money that's not spent.
It's about the investments that they have running in the background that's creating
passive income for those that have invested their money.
It's the cars that aren't purchased or
the multiple properties that aren't purchased.
Unless, of course,
you're using those properties as investment properties like I do.
So this wealth is a representation
of things that aren't spent today, but rather things that are invested
in today so that they can spend money later on.
They're actually thinking about their future and wanting that financial freedom
and making a conscious decision not to spend all of their money today living
paycheck to paycheck, but they spend on what their priorities are.
It's not about just hoarding all of your
money and never spending any of it, but really saying, OK,
what's important to me now, what do I really want to spend my money
on rather than just blowing all of your money on whatever you can see?
Essentially, rich means that you are
working for your money and wealthy means that your money is working for you.
And being truly wealthy isn't just about the money, it's about creating the life
that you want to live and having things that are important to you.
It's not about being flashy and just
showing off for the neighbors or whoever is watching you.
And it is harder to find the wealthy
people because they aren't being so flashy with their spending.
They're focused on growing their wealth so
that they can have the flexibility and the freedom that they desire.
If you haven't read the millionaire next door, I would highly recommend that. I will
leave a link below in the description so that you can check that book out.
But it talks about how just people next door to you could be millionaires.
They're kind of everyday millionaires because they aren't being flashy.
They aren't spending all of their money
and buying expensive homes or expensive cars.
So you would never know that you are living next door to a millionaire.
And honestly, my neighbors probably don't know that I'm a millionaire.
I don't live in some ritzy neighborhood.
I live in a nice, comfortable neighborhood.
And honestly, I was a little hesitant to create my, How
I Became A Millionaire, video because I
didn't know if I wanted all of my friends knowing that I was a millionaire.
And honestly, when some of them had found out, they questioned it and they
thought, wait, really, is she really a millionaire?
Because I'm not flashy in my spending and I didn't make a high salary.
I had an average job.
I just watched what I spent my money on and I made sure to invest my money.
And if you want to become wealthy instead of just rich, then you can do the things
that I've talked about in all of my videos.
Keep your investing very simple and you don't have to hoard all of your money.
Of course, if you want to travel, then travel.
Just make sure that you budget that out,
that you're not overspending, that you're spending less than you actually make.
And if travel isn't your thing, I totally understand,
because when I was younger, we didn't really travel a lot of different places.
But we would go camping all the time.
We would have a family reunion every year
with my mom's side of the family, and we would go camping for a week
and everyone would bring their trailers and we would just like hang out and go
hiking or play in the river and we would play card games.
I would cream my cousins at California Speed.
I don't know if anyone has played
that card game, but let me know in the comments if you have or not.
And we would just sit around the campfire
and tell stories and roast marshmallows have
smores. It was a very low key vacation, but super fun because we were just
spending time with one another and enjoying nature.
So when you're building your wealth, not only are you creating more money
for yourself, but then you're creating that time freedom as well.
And the more wealth that we create, then the more that we can give to others.
We can donate to our favorite charities or
help promote any good cause that we believe in.
For me, I love being able to pay 10 percent of my income to tithing
and the more that I make than the more I can pay in tithing.
And I know that is going toward a good
cause that I am able to help more and more people.
And not only that, but I'm being blessed as well.
Here's the thing. You can become wealthy just by doing
the few things that I've talked about in this video and in my other videos.
Instead of spending all of your money and living paycheck to paycheck and not
even really being happy with your own life.
Comment below and tell me if you are all about being rich or about being wealthy.
I'm curious to know. And if you found this video helpful, please hit that like button
and share it with someone else who would like to hear this information and hit
the subscribe button to subscribe to my YouTube channel and hit the little
bell to get notified on when I post new videos.
Thanks so much for watching.
I'll see you in the next video.