George Kamel Says Being Wealthy Is Better Than Being Rich — Which One Are You?
Written by
Jennifer Taylor
Edited by
Zuri Anderson
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They’re often used interchangeably, but being wealthy and rich aren’t the same thing. While they both involve having a lot of money pass through your hands, being wealthy is far superior, according to George Kamel.
In a recent YouTube video, the Ramsey personality explained why the two distinctions are actually very different. Keep reading to find out which category you fit into.
4 Main Differences Between Rich and Wealthy People
Lifestyle Choices
“Rich people spend their money on a fancy lifestyle, while wealthy people spend it on income-generating assets and passive income,” Kamel said.
He noted that rich people often flaunt their extravagant spending, because they want to maintain an image of being wealthy.
“They’re more concerned with looking rich than actually being rich,” he said.
Consequently, he noted that rich people tend to buy more depreciating assets than wealthy people. This is due to the latter being more focused on building lasting wealth than impressing others.
Financial Success Measures
“Rich people measure their financial success by their income, whereas wealthy people look at their net worth,” Kamel said.
He said rich people often focus on their income, because they need to earn a certain amount to maintain their lifestyle. What wealthy people realize is that a high income doesn’t guarantee long-term financial stability, unless they make solid financial decisions now.
Spending Habits
“Rich people live paycheck to paycheck, despite their high income and wealthy people have financial peace,” Kamel said.
Despite having a high income, many rich people are still stressed about their finances, he said. This isn’t the case for the wealthy, as they enjoy financial security in a variety of ways, such as having money in the bank, an emergency fund and retirement savings.
Debt
“Rich people owe, wealthy people own,” Kamel said.
He said it’s not uncommon to see rich people trying to impress others with their spending habits, but they could actually be heavily in debt. On the other hand, wealthy people only spend money they have, instead of borrowing it.
“If you live fake rich, you’ll end up real broke,” he said.
Wealthy have people more options and flexibility with their money, because the funds they’re spending are all their own, he said.
5 Tips To Build Wealth
If you currently fall into the rich category, it might be time to make some changes. Adjusting both your money mindset and spending habits can allow you to make the shift to wealthy.
Dave Ramsey shared five key tips to build wealth in a 2024 Facebook post. This includes living on a budget, getting out of debt and staying out of it, living on less than you earn, saving for retirement and being generous with your money by giving back to others.
Moving into the wealthy category probably won’t happen overnight. However, if you’re fully committed and willing to make the necessary changes, you’ll achieve this level of financial security.
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Sources
- George Kamel (YouTube), “Why Being Wealthy Is Better Than Being Rich.”
- Facebook, “Dave Ramsey’s Post.” Jan. 10, 2024.
