Many Jamaicans were brought up in homes in which their parents or grandparents spoke un-self-consciously about their desire not to be rich, but rather to have just enough money to pay their bills, put a nice meal on the table, and live a generally uncomplicated, content life. Having too much was a bad thing, an overly ambitious thing, which once could get their forebears killed. And though this sentiment can be: (a) deemed a throwback to a long-gone era when descendants of slaves did not dare harbour Rockefeller dreams and (b) seen as a troubling short-sightedness towards what we today know as the important concept of legacy planning — let’s unpack it to see if there’s any validity to it.

People of that era instinctively understood one basic fact, perhaps without even knowing that they did: Being rich is hard work. It is usually conflated with owning big houses, driving fancy cars, possessing expensive things, and making, as the kids today say, “bank”. And this is all true. However, inherent in this, old-time people knew, was something the late rapper Biggie Smalls found out: More money, more problems.

So, being rich will put you in a higher economic bracket; however, because expenses tend to rise the richer one becomes, the more one has to work to hold on to those riches. In other words, when your salary skyrockets, your expenses tend to, as well. You make more money so your children can go to the finest schools with higher tuition costs, your car must be changed constantly to reflect your improved financial position; as, too, must your home, your tech gadgets. More money, more problems.

Consequently, you find yourself on a financial treadmill that will witness you spending more and more time at the office, away from loved ones, ensuring that you secure that lifestyle, but not necessarily even enjoying it.

You may be becoming richer, but not necessarily accumulating any real wealth.

There’s a difference between being rich and being wealthy.

Do you know that someone who makes less money than someone else who’s thought of to be rich in the conventional sense can in fact be wealthier than that rich person who has ostentatious jewellery and wears high-end designer labels? This is because wealth isn’t about the size of your paycheque. One of the best quotes I’ve ever heard to explain the difference between being rich and being wealthy is this one by Robert “Rich Dad” Kiyosaki: “The rich have lots of money; the wealthy don’t worry about money.”

That is to say, wealthy people have sustainable money; rich people don’t. Rich people have money; wealthy people know how to make it so that it never stops coming.

Here today, gone tomorrow

Think of a celebrity who was once swimming in money — MC Hammer comes readily to mind — or even a lottery winner or athlete, who ended up losing it all. How could this happen? Very easily, actually.

The truth is, it doesn’t matter how much money you have; if your expenses are higher than your income — which they tend to be for the newly rich — you will always be in debt. It’s a case of what old-time Jamaican people term “neva see, come see”, meaning, the newly rich tend to recklessly purchase every little thing their hearts desire. So, let’s say they won $10 million in the lottery but, rather than investing most of it, end up spending, say, $15 million. On the surface they seem rich, the target of the proverbial “badmind”. But the truth is, they’ve started the ball rolling on the downward journey to becoming broke.

Be in it to win it

Wealth, meanwhile, is a different mindset. Accruing wealth is a long game that requires discipline and commitment. Wealthy people may have a lot of money, but they don’t spend it willy-nilly. And they definitely will not use debt, except in the event of clear circumstances such as investment, when they will reap long-term dividends. Remember this rule of thumb when thinking about the difference between being rich and being wealthy: Rich people tend to spend a lot of money; wealthy people save as much of their money and invest it so that it can constantly make more of them. How do they do this? By investing in the stock market, diversifying their financial portfolios, buying real estate. It’s all about growing wealth by converting money into assets.

How can you start to create wealth?

The good news is that you can start the journey to wealth creation now by being financially intelligent. Start by paying off debt, which more often than not takes the form of credit card debt. This means you can’t keep using the card even as you’re paying it down!

Also, begin saving at least 10 per cent of your paycheque each month, no exceptions. Eliminate or cut back on non-essential expenses.

Begin investing with as much money as you can. Wealth advisors can be your best friends if you struggle in this area.

With this being said, what do you visualise for yourself: Being rich or wealthy? With a stroke of luck, so many people can become rich. Being wealthy is, however, preferable. Don’t work for your money; let your money work for you.