Smart Money Parenting Rich vs. Wealthy: What Does it Mean to Have True Wealth?
What is the difference between wealthy and rich? In today's episode, hosts Scott Donnell and Chad Willardson discuss the differences between being wealthy and being rich, as well as how kids can learn to differentiate between the two.
- Scott starts the discussion by describing how true wealth differs from being rich.
- Chad doesn't particularly like the term "rich" because owning a bunch of status symbols to keep up with the Joneses is not an actual benchmark of success.
- For Chad, a massive house and an expensive car do not tell you anything about a person's financial situation.
- Chad and Scott agree that rich is loud and wealth is quiet, most of the time.
- They further explain that true wealth is built brick by brick over time and living like nobody else today so you can live like no one else tomorrow.
- According to Scott, these super-expensive status symbols come with a lot of baggage if you don't have wealth.
- Chad believes trying to be rich is an anxious lifestyle, but living wealthy is real freedom. So kids should aim for wealth instead of riches.
- You make a living by what you get, but you make a life by what you give.
- Teach your kids that there's a very big difference between being rich and being wealthy - but it's almost impossible to tell from the outside.
- According to Chad, there's nothing wrong with owning a big house or a nice car - as long as you can afford it and live within your means.
- Wealth is wealth. You either have it or you don't.
- Chad and Scott discuss how the so-called financial gurus mislead people with get-rich-quick schemes that rarely work in the real world.
- If you own a bunch of nice stuff, Scott believes you should attempt to consistently communicate to your kids about how fortunate you are to be financially stable.
- For Scott, being wealthy is when you make wise money decisions, have your finances in order, and own assets that can withstand the test of time.
Mentioned in This Episode:
smartmoneyparenting.com/followus
The Billionaire Who Wasn't: How Chuck Feeney Secretly Made and Gave Away a Fortune by Conor O'Clery
Smart, Not Spoiled: The 7 Money Skills Kids Must Master Before Leaving the Nest by Chad Willardson
Value Creation Kid: The Healthy Struggles Your Children Need to Succeed by Scott Donnell and Lee Benson
Scott Donnell on LinkedIn - https://www.linkedin.com/in/donnell-scott
Chad Willardson on LinkedIn - https://www.linkedin.com/in/chadwillardson
Scott Donnell on Instagram - @imscottdonnell
Chad Willardson on Instagram - @chad.willardson
Scott Donnell on TikTok - @imscottdonnell