Life has a funny way of teaching you lessons through the most unexpected teachers. A few days ago, my 12-year-old son hit me with an insight that had me thinking deeply about something I thought I already understood.
We were chillin’ at home, just talking about money and future plans, when he mentioned he had an article idea. I told him to email it to me, and man, what he sent had me impressed:
“I have the idea of making an article about the difference between someone who’s rich and someone who’s wealthy. I believe that these are two very different types of people who have a lot of money. I believe that someone who is rich is someone who has a lot of money but spends it unwisely. I believe that someone who is wealthy is someone who has a lot of money and doesn’t splurge it, but simply tries to keep and grow said wealth. There is this youtuber named Mark Tilbury I think you should watch. He makes videos about how to keep wealth. I also have a little point you can make. Why is it called generational wealth and not generational riches? Because being wealthy is all about keeping the money.”
For a 12-year-old? This kid is going places!
What Do The Dictionaries Say?
If you look up these terms in Oxford Languages, you’ll find:
Rich: Having a great deal of money or assets; wealthy; plentiful; abundant.
Wealthy: Having a great deal of money, resources, or assets; rich.
On paper, they look like synonyms. But real talk? They’re fundamentally different concepts.
The Streets vs. The Estates
Lemme break it down for you how we see it in Harlem. When we talk about somebody being rich, we talkin’ ’bout that flashy dude with the new Benz, the ice, the designer clothes – all that. He got money right NOW. But ask yourself – where that same dude gonna be in 10 years? That’s the million-dollar question.
See, back in the day, I knew plenty of people who came up quick. Record deals, ball contracts, street pharmaceuticals – whatever. They was RICH. But now? Some of ’em can’t even pay their rent. Why? ‘Cause being rich is just a moment in time. It’s a status, not a system.
Being wealthy? That’s a whole different ballgame. That’s chess, not checkers.
Why I Want Wealth, Not Riches
I don’t want to be rich. I want to be WEALTHY. And there’s a critical difference.
Wealth isn’t about how much cash you can flash at the club or how many likes your jewelry gets on the ‘gram. Wealth is about building something that outlasts you. It’s about creating financial systems that generate money while you sleep, that grow over time, and that can be passed down to your children and their children.
Rich is now. Wealthy is forever.
Cash Is Trash: The Real Talk
One of the biggest lessons I’ve learned on my financial journey is this: Cash is Trash!
Yeah, I said it. That doesn’t mean money isn’t important – it means holding large amounts of cash is like watching your wealth evaporate over time.
Inflation is eating away at your purchasing power year after year. That $100 bill in your pocket can buy less today than it could last year, and it’ll buy even less next year.
Real wealth builders don’t hoard cash – they convert it into appreciating assets. They buy:
- Real estate that generates rental income
- Ownership stakes in businesses through stocks
- Income-producing assets like dividend stocks or bonds
- Their own businesses that create value and solve problems
The Correction: What My Son Got Wrong
Now, my son was on point with most of his thinking, but there was one correction I had to make to his email.
He wrote: “Why is it called generational wealth and not generational riches? Because being wealthy is all about keeping the money.”
That last part isn’t quite right. Being wealthy isn’t about KEEPING money – it’s about TRANSFORMING money into assets that APPRECIATE in value over time!
This distinction is crucial. The wealthy don’t stuff cash under mattresses or even leave it sitting in savings accounts. They put their money in motion, acquiring assets that grow in value and produce more money.
The Generational Game
There’s a reason we call it “generational wealth” and not “generational riches.” Wealth is a system, a mindset, and a practice that can be taught and passed down. Riches come and go.
Think about the old money families around the world. The Rockefellers, for example. They’re not just “rich” – they created structures, trusts, businesses, and financial education systems within their family that have preserved and grown their wealth for generations.
That’s the difference. And that’s what I’m building – not just for me, but for my son and his children after him.
So what about you? Are you chasing riches, or are you building wealth?
I know which game I’m playing. Do you?
For more reading, check out the following:
- The Road to Riches: How to Build Wealth on Your Own Terms
- The Revolutionary Truth: Elon Musk’s Powerful Insight on Wealth Creation Through Social Impact
What’s your take on the difference between rich and wealthy? Drop your thoughts in the comments below, and let’s build this wealth conversation together.
