WEALTH vs MONEY

Money is: When you are a Doctor or Lawyer or what ever (Business owner) making $450,000 per year and with full benefits but needing to work full time and even overtime to maintain that (60 hours+). You enjoy access to a country club in Beverly Hills for a monthly fee — and you go golfing in the summer — and you go hunting in Canada on yearly vacation.

You also own a big house in Beverly Hills but with a mortgage and a boat at the Marina Del Rey Docs, but it’s financed. Your kids go to private schools and with tutors if need be. You drive both a Benz and a Ferrari but you drive your own cars. The cars are financed. Your wife doesn’t work. You have a private chef that comes over and cooks your family meals.

With a safe stacked with cash incase of a rainy day, you don’t worry so much if you have to call in to work sick or if you need to take off for a few days.

You have money to basically do what you want but to a degree. You own stocks and wondering if you have enough put away for early retirement or if you need to work ‘till 65 to be on the safe side. You worry about a stock market crash and wonder if that could affect your retirement.

Wealth is: Owning 9 gas stations (inherited from your father). And your older brother has even more businesses than you do. Collectively, your family is like a financial empire (family wealth).

You have private doctors that make house calls — what ever medical specialists you need. You don’t work a job. Your ‘job’ is only to look after your businesses. Not only are you set up for retirement but your children are also set up: financially stable, with their own retirement accounts. You prepare your children to run the family businesses when they come of age. You do not prepare them or encourage them to work a job. ‘You don’t work — you own.’

You have what they call ‘generational wealth.’ Most of the financial assets you have are tied to a family trust. Having both accountants and lawyers on payroll, your most important lawyer charges $750 per hour for legal advice — and he’s totally worth it!

You own a mansion in Beverly Hills, CA and another in the Hamptons, NY — no mortgage, all paid off. You employ a live in Butler and a live in Maid. And you have a chauffeur to drive you around while you ponder your next business venture — or while you just take a nap in the back seat.

A trust says you have 25% ownership of that same country club in Beverly Hills and your siblings own the rest. Including the country club, the gas salutations and maintaining both residences, you employ over 100+ workers; most are paid hourly rates.

You have a safe — filled with gold!

You don’t have rainy days…

You have basically the money to do what ever you want within reason.

A nice portion of your wealth is sitting in the stock market but every time the market crashes you barely blink. From your dividend stocks alone you earn a healthy wage — $332,000 per year and that number seems to be gradually increasing more than inflation.

You have free cash to buy more shares when the market corrects and prices come down, a trick you learned from your father.