There is a small point that I would like to make clear. The terms rich and wealthy have become synonyms, but there is a subtle difference in the way I use them and their consequences. Rich, by my definition, means having a lot of money. Wealthy means to be able to support a lifestyle. To illustrate the difference, consider two people who have just won £1million on the lottery.
The first goes out and buys a huge mansion using a mortgage to cover most of the purchase, then a sports car, luxury holiday and clothes. This person now would be described as rich, with the possessions expected of that amount of money.
The second person buys several properties outright, lives in one and rents the others out. With the rental income they are able to support a modest but debt free lifestyle. This I would describe as wealthy.
This is a basic example but I want to highlight the difference I see in the two. I would also like you to consider which lifestyle you would pick from these two.
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