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The Difference Between Making Money & Becoming Wealthy

December 9, 2011 By 18 Comments
Money amplifies who we are. It’s all around us and impacts us on a daily basis. In one way or another we all deal with money every day whether it’s by spending it, thinking about spending it or trying to find ways to get more of it.

If you’ve never stopped to think about it, there is a difference between making money and becoming wealthy and most of it revolves around our mindset. Here are the differences between the two types of mindsets:

The Making Money Mindset

  • You spend every penny you own and then some every.single.month.
  • The sole purpose of making money is to pay the bills you have, if you have any money left over you just go spend it.
  • You live paycheck to paycheck (no matter what your income is $10,000-$100,000, it doesn’t matter).
  • May appear “wealthy” with all kinds of nice things but in reality you are drowning in debt.
  • You disregard those who live below their means as not living for today.
  • Always have to have the newest and greatest things and you have to have it first!
  • Spending makes you feel better about yourself. You’ve got the credit, why not use it?
  • You are never satisfied and always looking for the next best thing.


The Becoming Wealthy Mindset

  • It doesn’t matter what you make ($10,000-$100,000),  each month you spend less than you earn
  • You consistently set money aside each month – your money works for you (saving) not against you (debt).
  • You keep your car a year or two longer, pass on the newest technology and wait until you can pay cash to buy it.
  • You have money set aside for emergencies and feel secure in knowing that it’s there.
  • Buying on credit is appalling to you. You’d rather go without then have the TV. package with 5,000 channels that no one is ever home to watch.

Who are you today? Who do you want to be? Do you want to be the person who lives your life working everyday for your next paycheck or do you want to adopt a wealthy mindset so you can prepare for your future? It’s never too late to change your habits and the way you think about money. Why not start today?

Filed Under: Blog, Featured Bar, Personal Finance
  • Steve MoneyPlanSOS Stewart

    I am in the Becoming Wealthy Mindset after growing up in the making money mindset.
    I say no to FICO (don’t use debt instruments like credit cards to Improve my credit score), save money in retirement and replacement vehicles, and we pre-plan our spending in order to do it all over again next month.
    Let me take a guess as to which you are Jenny. :)

  • http://twitter.com/USMBlogger UltimateSmartMoney

    I also trying my best to have becoming wealthy mindset.  It’s difficult sometimes, but it is so important to make sure I continue to decrease my debt.

  • Anonymous

    I was always “wealthy” because I lived as though I had choices.  My choices were saving first and never buying things that I did not need.  I always lived on less than I earned.  It helped me achieve financial success.

  • http://www.themoneyprinciple.co.uk Maria@moneyprinciple

    All the way with the ‘becoming wealthy midnset’ but it took me quite a long time to get there. Now developing it further. Interesting distinction though: I am thinking about the differences between ‘financially independent’ and ‘financially healthy’.

  • http://formerbanker.com Will

    I’m sort of in between because I always keep in mind that you never know when you’re going to die. It’s all a matter of balance. Focusing too much on the future to the detriment of the present is as bad as the other way around in my humble opinion :-)

  • http://thejennypincher.com The Jenny Pincher

    Very true Will! Balance is key in everything we do.

  • http://thejennypincher.com The Jenny Pincher

    Interesting to think about it that way ’financially independent’ and ‘financially healthy’ Maria. I am not sure I have looked at it that way before.

  • http://thejennypincher.com The Jenny Pincher

    Great advice krantcents

  • http://thejennypincher.com The Jenny Pincher

    Totally agree.

  • http://thejennypincher.com The Jenny Pincher

    Haha Steve I think you know.

  • http://twitter.com/prairieecothrif Miss T

    I think wealth is a state of mind. You feel wealthy in your life when you have people that love you, a job that means something, debt free, a roof over your head etc. To me, making money is just a task you need to do to maintain that wealth. 

  • http://twitter.com/AverageJoeMoney Average Joe

    Your post reminds me of the line “it isn’t what you make, but what you keep.”

  • http://www.themoneyprinciple.co.uk Maria@moneyprinciple

    There is a post on the difference on my blog (if you are interested).

  • http://twitter.com/thefrugaltoad thefrugaltoad

    Definitely have the “wealthy” mindset but I wouldn’t say that I feel wealthy.  To me wealthy means I could quit the day job and still live a comfortable life, I am not quite there yet.

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  • Jtaylor

    Spend Less THAN You Earn

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