A lot of people confuse the two ideas. Money is simply the currency needed to exchange for goods or services, while wealth is the abundance of money. Your wealth can also be the total value of all the things you have in your life that you care about – the things that make your life the kind of life you want to live: people, ideas, material things, purpose, legacy, service, health and yes, money.
I would put it this way – with a money mindset; you can buy whatever you want. You don’t purchase whatever you want with a wealth mindset because you know you can afford it. Most people splurging money either have a lot or don’t have anything at all.
The goal should be to become rich, not act rich. Speaking about money, I have conflicting thoughts about charity too. Charity should always be anonymous. It should be done because you want to do it, not because you want to show others that you are doing it. The end goal is reached while doing charity, but as I always say, the means should justify the cause and vice-versa. So yeah, I think it’s okay if someone feels good about themselves by telling everyone, so be it.
One thing I’ve always noticed is that high-educated individuals tend to place little value on worldly wealth. That makes sense because you need to pursue knowledge at the expense of the money (Unless you attain scholarships). Life should always be about learning and seeking knowledge.
Many individuals run after money under the wrong assumptions thinking it will solve all their problems (And it does, most of the time), but it’s about what you do after attaining a certain level of wealth. That last tipping point of achieving wealth is more crucial than anything. Being educated should not be about ego; it should be about humility, nobility, and attitude.
I am an avid reader of Asim Qureshi where he says:
Genuinely educated people tend to go to museums, read, watch documentaries, travel to places rich with history and culture. They’re curious, their minds need stimulation. Listen, they can be wealthy and want material things, but it rarely consumes them.
By contrast, uneducated people tend to love fast cars, extravagant houses, showing off, the material and money. And to the most uneducated, nothing else matters.
It’s hard to be rich with your mindset than your wallet. Media today shows us that being rich means owning a lot of stuff, visiting nice places, and looking like a big person. None of it is true.
Being wealthy changes your mindset for better or worse. You realize that life is not about any of the above; it is about building assets with your income and using those assets to build more wealth. And all this starts by saving your paycheck and investing it. (Not just in terms of stock/bonds/ETFs but yourself).
Not worrying about what or when your next meal will be is a privilege within itself. I’ve been on both sides of the spectrum, and I choose the wealthier one any day. Yes, I like to not worry about money, and hopefully, someday, I won’t have to worry about wealth.
Funny story: I was speaking with my mom today morning, and she mentioned that it’s okay to splurge now and then rather than being too disciplined. Yes, that is important. It would be best if you enjoyed whatever you build or make in life rather than delaying it. Everything should be balanced.