The Difference Between the Rich and the Wealthy


Ben Constanty
CEO, Smartlink
Disrupting online payments with smart contracts.
Understanding how to manage money is crucial for wealth building. People think it is impossible to become wealthy, it is not.
However, it is understanding how the rich handle money versus how the wealthy handle money.
What is the difference you ask? You can look at it this way. A rich person makes a lot of money and probably has money set aside for retirement.
A wealthy person has hard assets, multiple incomes, and wealth that can be passed down from generation to generation. How you handle your finances is the difference between rich and wealthy.
🔎 Key takeaways
- The main difference between the rich and the wealthy resides in how they manage their money over the long term
- The rich tend to have high expenses and one source of income
- The wealthy put their money to work and are diversified
The Rich
First, we will highlight the rich and their attributes.
- Sole Income
Rich individuals tend to have only one income stream, but that income is sizeable. When rich people have one large income, they tend to feel wealthy.
Having one large income is not terrible, but it’s the same as putting all your eggs in one basket.
Rich people can become wealthy through one income stream, but it’s important how those funds are allocated.
- High Expenses
Rich people tend to have higher expenses than wealthy individuals. When you have a higher income you can finance purchases.
The downfall of financing purchases is it can slowly eat away cash flow. Without a second income stream, it can become difficult to build wealth.
To become wealthy, eliminating debt and paying cash is the way to go. Good debt though, is also a smart way to build wealth if you funnel it towards hard assets such as real estate.
- Lack Hard Assets
Lastly, the rich tend to have minimal assets, specifically hard assets.
The Wealthy
- Multiple Income Streams
Wealthy people have multiple income streams.
This can be a dividend portfolio, real estate, and businesses that generate revenue. Wealthy individuals are always looking to diversify their income and not rely solely on one or another.
- Low expenses
Next, wealthy people tend to limit their expenses. Living within your means is important to building wealth.
This includes purchasing reasonable vehicles, homes, and keeping reasonable entertainment budget.
Instead of spending money on those items, wealthy people allocate extra money towards wealth build assets.
- Physical Assets
Lastly, wealth people hold physical assets. This can range from gold and silver, real estate, and collectable items that appreciate.
The goal is to continue building value. Money does not like to be stagnant. When you keep money moving it tends to attract more money.
The list goes on but you can see some of the differences between the rich and the wealthy.
There is nothing wrong with being rich, especially if that is your goal. However, to build wealth or generational wealth you need to properly allocate your money.
Instead of keeping money in a savings account, look to save for a rental property or purchase precious metals.
Understanding these differences can change the trajectory of your financial life.

Ben Constanty
CEO, Smartlink
Disrupting online payments with smart contracts.
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