By Chadwick Roberson
I often hear or speak with individuals who always say, “I can’t wait to be rich”. Well, that’s great and all but why not wealthy? What’s the difference between the two and why should we care? Let me take a few moments to explain and you tell me which one you would rather be…
When someone is deemed “rich,” they’ve only amassed their large sum of money and/or financial success from mostly one source in a recent amount of time. For example: lottery winners, new found celebrities and even high-paid professionals such as doctors or lawyers belong in the category of being rich. You can become rich overnight! I believe this is why people often say they want to be rich rather than be wealthy. Becoming rich can happen instantly, but it can also disappear as fast as it came.
Sources of being Rich:
- Job Salary (i.e. $500,000/yr.)
- Winning the lottery
So what’s being wealthy? The funny thing is, to be wealthy is to be rich through ownership of other assets. Wealthy people don’t rely on the job, their natural talents or just one source of income/asset. You can take away their job, if they have one, and they won’t be poor. If done properly, a person can amass a large sum of wealth if they adequately save and invest over time. If you take away the income of a rich person, they would likely become poor. This reminds me of a middle aged couple I helped at the bank while working in college. I remember he and his wife had your typical “9-5” job and didn’t live outside their means. If my memory is correct, they had generated over $2 million dollars in wealth by saving and investing while working! They’re still saving and investing as their wealth accumulates today. I remember saying to myself, “Wow, this couple has more money than some doctors and lawyers I know.”
Sources of being Wealthy:
- Job Salary (i.e. $500,000/yr.)
- Savings (using funds from your salary)
Simply put: Rich people aren’t financially free while wealthy people are.
I read an article recently and it talked about all the “Get Rich” schemes out there now. Ironically, you’ll find several of those but you can’t find any “Get Wealthy” schemes because building wealth takes time, patience and effort. Being wealthy not only benefits you in the short term but the long term as well. Your children’s children can benefit from wealth, not riches. So ask yourself, which would you rather be: Rich or Wealthy?
On Tuesday, April 30, NYULYP will host “Building Wealth Creation: Finding Financial Freedom,” an interactive workshop to assist young professionals in making the next step to financial independence. It will be held at Morgan Stanley’s Manhattan offices.
About the Author, Chadwick Roberson
Chadwick Roberson is a Prime Brokerage Client Services Specialist in JP Morgan’s Investment Bank in New York. He serves as the primary contact for hedge funds and asset managers regarding their credit, rates and foreign exchange OTC trading business. He’s been a member of the New York Urban League Young Professionals since 2009. Prior to joining NYULYP, he was a member of the Black Executive Exchange Program (B.E.E.P)—the college arm of the National Urban League where he served as the Media Relations and Marketing Coordinator. His commitment to serving others and community involvement has blessed him with the opportunity to mentor young people from across the country.
Raised in Dallas, Texas he attended Southern University and A&M College in Baton Rouge, Louisiana. Chadwick is also a member of the Advisory Council for the Southern University College of Business.