WHAT WOULD SCROOGE DO?
How exactly do we go about distinguishing getting rich VS building wealth?
Even people in the financial industry can't seem to define it.
Few people even give it a second though.
If your going to achieve your financial dreams your going to have to know the difference.
One way to look at it is this:
Building wealth is the same as getting rich but getting rich isn't the same as building wealth.
O.K. Thats not exactly a perfect analogy but it does at least point your mind in the right direction.
In other words, you want to build wealth.
Build enough wealth and you will be rich.
But just daydreaming along and taking part in every scheme that comes along will leave with no wealth and everything but rich.
When people first think about getting rich their minds leads them to all the usually suspects.
House flipping, becoming a major social media "influencer", stock deals, cryptocurrency, perhaps a large anticipated inheritance.
Getting rich leaves a specific impression in most people's mind.
The impression of fast tracked wealth.
Think of it this way.
The term itself (get rich) is already two thirds of the way to "getting rich quick".
How often do you actually see someone go from poor to rich?
It happens but statistically you better not be betting on it.
Building wealth on the other hand is most associated with increasing your net worth.
A subject we've already covered and you should make sure you understand fully first.
Your net worth over time is the single clearest picture of the wealth building journey.
When we talk about building wealth were more likely going to be discussing traditional wealth building vehicles.
Other methods include 401ks, paying off mortgages, investing in index funds, avoiding car payments and other unnecessary debts,
self-directed IRAs, and so forth.
Please to meet you, hope you guessed my name! It's Blue Collar scrooge here and I'd like to just thank for taking the time to our little blog to help accomplish all things financial. Personally financial that is.