Rich vs. Wealthy: What's the Difference?

Dollar Wise Podcast

Although the two might be used interchangeably, rich and wealthy have two meanings in financial planning.

CERTIFIED FINANCIAL PLANNERS Jason Gabrieli and Catherine Allen-Carlozo discuss the importance of saving, building wealth, and aligning spending with financial goals. They emphasize the role of net worth and assets in achieving financial freedom, dispel the belief that wealth is only about lifestyle and consumption, and stress the significance of living below one's means and making wise financial choices. They provide examples and insights to encourage long-term wealth building and advise against get-rich-quick schemes.

Tune into this episode to also learn:

• Is income alone enough to determine wealth?
• How can you prioritize building net worth and assets?
• What are the benefits of living below your means?

What we discussed

[00:02:04] Net worth measures wealth; income indicates lifestyle

[00:04:01] Income and wealth levels in the US

[00:08:02] Income doesn't matter, spending does

[00:11:58] Building wealth takes time and consistency

[00:13:45] Choices and investments lead to financial freedom

3 Things To Remember

1. Building wealth is not just about earning a high income, but also about saving and managing your finances effectively
2. Net worth is a key indicator of wealth, measuring the value of your assets minus your liabilities
3. Financial freedom varies for everyone, and it's important to live below your means and make wise financial choices to build wealth over time

Useful Links

Connect with Jason Gabrieli: [e-mail] | LinkedIn

Connect with Catherine: LinkedIn

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