Wouldn’t it be awesome to buy whatever you want without working around the clock?
Wouldn’t it be great to drive your luxury car, travel around the world, sleep in five-star hotels, and wake up to a fantastic Instagram-worthy view?
Indeed, it is the life most of us dream of – the life of the rich.
But, is this really what being rich is all about?
What does being rich mean to you?
The definition of “rich” is subjective. But, it can be associated with luxury, abundance, happiness, and even freedom.
It is not solely to share with you my perspective but also to encourage you to develop better financial habits.
Being rich and looking rich are two different things.
Here are some of the misconceptions about being rich or how we usually qualify someone as “rich”.

1. Having a certain amount of money

You can have a fat amount in your bank account and still end up poor.
As Robert Kiyosaki said, “the more money you make, the more money you spend”.
No matter how tremendous your income is, if you do not know how to manage your finances, you’ll end up living paycheck after paycheck.
Being rich isn’t about earning a certain level of income.
It is reaching a certain level of maturity to let go of the need to impress others by how rich you look and to make wiser financial choices.

2. Having expensive cars, houses, services, etc.

Yes, you have brand new cars, clothes, and more but don’t deplete your financial resources and drown in debt to get these material things.
In the long run, these luxuries will decrease in value.
Most millionaires have one thing in common, and that is, they invest in assets and buy things that increase in value.
Being able to afford something expensive does not mean you have to buy it. It all boils down to knowing what you need.

3. Having a steady source of income.

Are you on edge with your finances?
Do you spend all your money just because you’re confident that you’ll have money again by the end of the week?
Free yourself from the anxiety of waiting for the money to reflect in your bank account.
Although it’s good to have a constant source of income, it’s still better to have multiple streams of income.
Try investing in the stock market or real estate. You can turn your hobbies into a business or do freelance jobs.

4. Having money but not having enough when the need arises.

Regular source of income? Check!
Comfortable lifestyle? Check!
What about your savings? Sometimes we focus a lot on how much we earn that we forget how much we save.
Will you have enough money to handle emergencies?
That’s why the genuinely rich have “emergency funds” to spare them from the stress of looking for money when the need arises.
These are just a few of the bad money habits that we shrug off every day.
It is more difficult to find ways to earn money, but it’s so easy to spend money.
So, don’t put all your money and energy in looking rich if it will most likely make you poor.
Being rich is having financial freedom and still exercising your skill of self-control to sustain your finances.
Having the right mindset and developing the right financial habits are what you need to have a financially worry-free life.
Now, the ball is on your court.

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ABOUT THE AUTHOR

Jun Sing Tan

I help young adults and working professionals achieve their financial goals with a full suite of risk management and wealth accumulation solutions. I firmly believe that financial education should be easy and achievable for all. I am committed to service and hope to be your one stop financial solution.

author

Jun Sing Tan

November 18, 2020

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