Rich or Wealthy? Choice is yours

Kamal K Sharma

Who does not want to be rich? What ever walk of life you belong to and which ever field you work….being a businessman, a doctor, an engineer, an advocate or may be an officer, on back of mind there is a never ending desire to be rich and everyone makes all possible efforts to get into the big league in some or other stage of life. Human tendency reflects that people want to be rich rather than being happy….there is a common understanding that once you are rich everything else follows….though this may not settle well for all but modern life is programmed around this false feeling. Progress is human nature and need of modern life as well….progressing from one stage to another in terms of middle class to upper middle class to rich is what we call life race in society and this reflects in every walk of life.
What defines if you are Rich?
Having a decent job or good source of earning, Living in a good house, driving a luxory car, having an expensive bike, sending children to good school and branded college, holidaying every year, buying latest gadgets, having a club membership, a large friend circle, wearing enough jewellery, an expensive watch, branded cloths, shoes, jeans, jackets, suits, ties, nice goggles, latest IPhone or any other top branded mobile, regular travel by air, organizing regular parties, can afford Tax Savings, bought a health insurance cover, have enough deposits to make you survive for next 3 years if god forbid there is no flow of income and to back it all, you have a Term Insurance cover of 50 lakh for family in case life throws a surprise like death and so on….all are signs that one is rich enough to afford these luxories of life. People appreciate you, one has good presence on social media, you attract Facebook and Instagram followers very easily and most of the time your style is talk of every party, people really wait for your Diwali gifts and you also feel really satisfied that life is cool as a rich man. Undoubtly one should have this proud feeling because where you started from and what you have achieved by ways of your hardwork, smart approach and dedicated afforts is worth all the praise, not many who started with you have reached this far. Celebrate your success for sure…its not easy to become rich.
How many people have scored 300 runs in test matches…..I am sure you know them by name, you remember that inning very well when Sehwag made this possible in Multan….this was inning of class, patience, preservence and on top of all, this inning moved him to a differnt league…..30 runs can happen by chance with few loose shots here and there but 300 runs is a diiferent class and this needs lot of efforts, adjustments, patience and once achieved you become a legend for ever. Same is the difference between being rich or wealthy. But one thing is important to note that becoming Rich is route to become Wealthy with slight adjustments and sacrifices.
Wealthy on the other hand is more refinded form of rich, they certainly earn well and put their money to use in a way that their hard earned money starts working for them by generating more money. They create assets that grow as well as create regular income. In reverse to Rich, wealthy are the ones who make no compromise with quality of assets they buy or Invest in, rather they make adjustments with their branding habits, living style and many other things. A business class travel at the age of 70 years is much comfortable and needed when you fly to New York from Delhi to celebrate Diwali / XMas with you grand children than travelling a business class at the age of 35 yrs for a leisure trip to Goa.
Being wealthy is a choice that comes from within, no books or teaching is good enough to change your thought process to be a Wealthy Man or Wealthy Family. Its very simple thing to understand i.e When you want your hard earned money to stay with you for long run, when its growing value makes you happy for decades, when its dividends keep meeting your future needs, when its presence becomes the confidence for your future generations… certainly become an icon who lived wealthy and created so much for your future generations. In Connaught Place, Delhi a 300 sqft office gives anywhere between Rs. 70000 – 100000/PM rent i.e about 10 – 12 lakh a year, not one but there must be many who own space there for many decades now.
Creating assets is a passion for many and that is the way to become wealthy. Its not necessary that only real estate means wealth….there are so many ways to create assests. Your Equity Portfolio, Your Mutual Funds, Your Business Investments, Your Rental Income, Royalty you receive as a writer, Your start up Funding, AIFs (Alternate Investment Funds) are all type of assets that help you generate real wealth. Wealth Creation is a process that does not just start after your Retirement or once you get Married or when you have children or any other specific age, it actually starts with your first earning or anytime you get to know the difference between being Rich & Wealthy.
I found this list of difference between Rich n Wealthy on social media realized this to be so true in today’s times.
Its so true and society around us is full of these Rags to Riches stories, its universal truth that someone earning 5 lakh a month with bad spending habits can be a rich man for 3 decades but someone earning 1 lakh a month with very good Investing habits can be a Wealthy man for rest of his life and will certainly leave a legecy behind. The best gift we can give to our young children is to tell them the value of money and the difference between Rich & Wealthy. Given that we have “Live for today kind of generation with spend it all kind of lifestyle”, its important that they learn that being Wealthy is good for Individuals, Good for the family, good for the society, good for the needy and good for the nation too. A small change can create the big difference……..I leave you here with this food for thought “A family of 4 using high end smart phones and changing the handset every 2 years might spend about 60 – 72 Lakh till the age of 75 Yrs” just on handset s only
Its time to get your “Way to being Wealthy” equation right,…..A watch worth 70000 or 7000 will tell the same time, a Phone with price tag of Rs. 30000 or 1.25 Lakh will share the same emotions when called by long distance friend, spending Rs. 50000 on a cab for family rides is better if your SUV worth 20 lakh is driven just 2000 Kms in a year and spending Rs. 1500 on buying a single shirt is better than buying 3 at Rs. 3000 if 2 have to keep lying unused in your cupboard.
Keeping money in Saving Account, Insurance Policies, GPF, FDs, Post Office RDs that dont even beat inflation or Spending on unnecssary wants is a sure distraction from creating wealth. Have your plan to create wealth in place……Create Equity, Mutual Fund, Real Estate assets that not only beat inflation but create wealth too. Be positive that you will spend about 90 yrs on this planet, your working life will come to an end between 55 to 60. During remaing 30-35 years, you will need money for almost everything. Its time to Invest and create assets so that your assets will generate income for you. One day your Children might not be in position to help you for so many reasons but your assets will certainly making progress and giving you a much needed cushion. Happy Investing !!!
The author is a visiting faculty BSE (Bombay Stock Exchange) Institutes, a Financial Professional)