Rich vs. Wealthy: What’s the Difference?
July 7, 2023 •
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
- Building wealth is not just about earning a high income, but also about saving and managing your finances effectively
- Net worth is a key indicator of wealth, measuring the value of your assets minus your liabilities
- 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: jgabrieli@HFMadvisors.com | LinkedIn
Connect with Catherine: LinkedIn
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HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
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Disclosure: HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
