A few weeks ago, I was conversing with a friend, and we discussed business and other financial-related topics. I recalled how he kept saying that all he needed was money. In his defense, he felt that all the issues and challenges he was going through could be solved if he had money. He mentioned that he was willing to take up multiple jobs to achieve this goal. My next response was to ask him, "How much exactly do you need? How much money is enough?". His response was hilarious as he said, "1 million dollars".
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As we laughed at his response, he continued saying he'd keep looking for money as the cost of living was increasing sporadically. At that moment, I realized his goal for making money was to live above the means.
Like many other people I've had conversations with, my friend feels like the solution to all of their challenges is to have money. As consequential as this is, especially in reflection on the state of the economy, we must understand that this shouldn't be the focal point of our financial pursuits.
This is not to demean the importance of money, but the quest for having money isn't just to be rich. Rather, it should be to be wealthy. Being rich and being wealthy may sound alike, but they are completely different.
Being rich means accumulating enough money to live above the means. This means you have enough money to cover your bills and other outstanding payments and still have a little more to spare. Compared to most income earners in the country today, being rich is a fairly good place to be. It signifies that you're above average.
As a friend of mine describes it, "You do pass, but you never get a confirmed grade". Simply, it means you're well above others, but you've not fully attained your full potential.
On the other hand, being wealthy is accumulating money to the point where you are in total control of your time. This is a realm of absolute mastery and control over your time, health, and wealth. It is a state of total well-being. When you're wealthy, your health is well catered to, your time is well accounted for, your investments are doing well, and your finances are under control. This is different from being rich. Here, you're rich, but it's not at the expense of your health, time, and energy. You're accumulating money, but it's not to settle bills alone; it's also to explore your goals, aspirations, and desires.
You're probably wondering, "How exactly do we attain this state?". I'll share something I learned from a mentor regarding this. Being wealthy is not an achievement that you attain in a day, nor is it something imparted upon you. Some of our peers experience it because of belonging to a family with generational wealth. However, for every one of us who desires to become wealthy on our own, then there's work to be done. The freedom of being wealthy is developed when you invest your money and multiply your passive income streams.
Simply put, you must take time to create a workable structure around your finances and develop it further by spending more on investments.
Organizing your finances comes with spelling out all the details of your cash flow (inflow and outflow). You'll then have to create a budget for your finances to minimize impulsive spending and keep track of your financial growth. When creating this structure, ensure you budget a fair amount for investment opportunities.
Investment, though risky ventures, provides opportunities to accumulate wealth without being actively involved. For instance, when you invest in stocks, your job is to research the stock market, make your choice, invest the money, and watch your money yield.
At this point, it is important to note that being wealthy is not a venture that comes overnight. It takes time, and it takes lots of work. However, it is achievable. There are too many testimonies of people who have gone through this path and have become wealthy today. This is to encourage you and me that it is possible.
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