WEBVTT - Getting Rich vs Building Wealth #488 0:00:00.200 --> 0:00:02.680 Welcome to How the Money. I'm Joel and I in 0:00:02.960 --> 0:00:26.120 that and today we're discussing getting rich versus building wealth. Yeah, Joel, 0:00:26.160 --> 0:00:29.120 you know, there are some fundamental differences between being rich 0:00:29.560 --> 0:00:33.080 and being wealthy, and we're gonna talk about that today. Like, 0:00:33.080 --> 0:00:36.000 this is going to be a good episode because, like 0:00:36.040 --> 0:00:39.760 we're laying down some like some foundational truths that I 0:00:39.800 --> 0:00:42.360 think if you don't already have some of these ways 0:00:42.360 --> 0:00:44.320 of viewing the world in your mind, they have the 0:00:44.360 --> 0:00:46.879 ability to like drastically change how it is that you 0:00:47.080 --> 0:00:50.800 view everything right like from it's like a new filter. Yeah, 0:00:50.800 --> 0:00:52.800 how you spend your time, like how it is and 0:00:52.840 --> 0:00:54.480 why it is that you work, what you spend your 0:00:54.520 --> 0:00:57.640 money on, um, your expenses, but even just money in 0:00:57.640 --> 0:01:00.200 and of itself, how you approach your money. So we're 0:01:00.200 --> 0:01:02.120 gonna spend some time, like we're gonna zoom out a 0:01:02.120 --> 0:01:04.479 little bit and talk about some of these differences. I'm 0:01:04.480 --> 0:01:07.240 looking forward to this episode. Yeah. So it just kind 0:01:07.280 --> 0:01:09.920 of makes me think of when Instagram first launched and 0:01:09.920 --> 0:01:12.440 how everyone was using filters, like people when people are 0:01:12.440 --> 0:01:14.880 all about those filters, myself included, Hey dog, you ever 0:01:15.000 --> 0:01:16.920 used the Nashville filter? I was gonna say the Nashville 0:01:16.920 --> 0:01:18.160 like it was my go to. I was like, it 0:01:18.160 --> 0:01:21.000 makes everything look better, right, But now these days that 0:01:21.080 --> 0:01:23.520 just makes it look right and dated. I don't think 0:01:23.560 --> 0:01:26.480 anybody uses those like Vinta style filters on Instagram anymore. 0:01:26.680 --> 0:01:28.880 But but when you first started, it was kind of 0:01:28.920 --> 0:01:32.280 like a revelation here, like all my pictures like what 0:01:32.319 --> 0:01:35.000 a fun thing? Um, And and now just that's not 0:01:35.040 --> 0:01:36.959 how people think about it. But I think, yeah, when 0:01:36.959 --> 0:01:40.640 you view uh, this this getting rich versus building wealth psychotomy, 0:01:40.880 --> 0:01:42.400 there can be a huge gap and how we actually 0:01:42.440 --> 0:01:45.200 think about and approach our finances, depending on which one 0:01:45.240 --> 0:01:47.640 we're pursuing. But before we get to that, matt Um, 0:01:47.800 --> 0:01:49.920 I just wanted to quickly mention a website that we've 0:01:49.920 --> 0:01:52.400 talked about before on the show. But you've got a 0:01:52.440 --> 0:01:54.480 quick tip for us to very quick tip. I have 0:01:54.640 --> 0:01:57.440 just scheduled a chip Drop and I forget if it 0:01:57.480 --> 0:01:59.200 was a listener that first tiptos off. I think you 0:01:59.280 --> 0:02:01.160 knew about it all anyway, I'd heard about it, but 0:02:01.200 --> 0:02:03.600 I think a listener maybe in the Facebook group. Yeah, Well, 0:02:03.640 --> 0:02:05.960 just before I forget, the website is get chip drop 0:02:06.040 --> 0:02:09.440 dot com And if you ever need like a giant 0:02:09.520 --> 0:02:11.840 pilot mulch. And I do mean giant because mine should 0:02:11.840 --> 0:02:14.079 be coming this week and who knows how big it's 0:02:14.080 --> 0:02:17.240 going to be, but supposedly quite large. Then this is 0:02:17.280 --> 0:02:20.280 a great website to sign up for a freeload. And 0:02:20.360 --> 0:02:23.799 so yeah, because we just did some renovations, our backyard 0:02:24.160 --> 0:02:26.480 still a mess, kind of a money mess. We're gonna 0:02:26.520 --> 0:02:28.320 drop some grass feed back there and stuff, but we 0:02:28.360 --> 0:02:30.240 need a lot of mulch to cover up some of those, 0:02:30.480 --> 0:02:32.480 you know, shoddy areas in the backyard that have been 0:02:32.520 --> 0:02:34.959 kind of roughed up. So dude, yeah, getting your home renovated, 0:02:35.200 --> 0:02:38.600 like your yard, like the grounds take a beating because 0:02:38.919 --> 0:02:41.040 like you gotta porta potty set up there like a 0:02:41.240 --> 0:02:44.760 holloway dumpster. There's nails everywhere and just like broken bits 0:02:44.800 --> 0:02:47.079 of like construction. To bring your kids over to do 0:02:47.160 --> 0:02:48.880 trash treasures in my yard now, because there's gonna be 0:02:48.880 --> 0:02:51.520 a bunch. So yeah, the girls having that experience of 0:02:51.560 --> 0:02:54.160 having already done trash treasures prior to our innovation a 0:02:54.160 --> 0:02:58.639 few years ago came in handy because they're constantly finding nails, uh, 0:02:58.639 --> 0:03:00.560 And I want to reward them for getting those out 0:03:00.560 --> 0:03:01.840 of the yard. I don't want to you don't want 0:03:01.840 --> 0:03:04.040 anybody to to step on that Joe. By the way, 0:03:04.080 --> 0:03:06.360 I gotta say, random people have used my porta potty 0:03:06.400 --> 0:03:08.000 and it's kind of been funny to like hout the 0:03:08.000 --> 0:03:11.480 window and see people just like park their car, get out, 0:03:11.720 --> 0:03:13.320 hop in the bathroom, and hop back in and go. 0:03:13.960 --> 0:03:16.239 It's it's true, it happens. That's disgusting. I don't even 0:03:16.240 --> 0:03:18.160 like to go to the bathroom like out in public 0:03:18.360 --> 0:03:20.480 at a like a gas station. I'm not a huge 0:03:20.520 --> 0:03:23.000 fan of going to public bathrooms in general. I get 0:03:23.400 --> 0:03:26.399 going into that's like it's even worse ten times worse. 0:03:26.440 --> 0:03:28.560 But so get chip drop dot com if you ever 0:03:28.600 --> 0:03:31.480 need like random free mulch um. It's it's a website 0:03:31.480 --> 0:03:33.799 you can use to make that happen. Not only that too, 0:03:33.840 --> 0:03:35.720 but you can get rounds cut so like you know, 0:03:35.800 --> 0:03:38.160 chunks of a trunk of a tree if you want 0:03:38.200 --> 0:03:40.640 the one on hand to stop your own firewood. Yeah exactly. 0:03:40.680 --> 0:03:42.800 But again, like you said, you need to make sure 0:03:42.800 --> 0:03:44.680 that you're ready for a lot of it, because when 0:03:44.680 --> 0:03:47.160 they show up, I mean they'll dump an entire like 0:03:47.360 --> 0:03:49.560 dump truck full in your yard and not like, hey, 0:03:49.600 --> 0:03:51.920 you want three or four, and it's like, no, here's two. 0:03:52.000 --> 0:03:54.080 You know, that's kind of how it goes. So it's 0:03:54.120 --> 0:03:56.240 all or nothing. Yeah, whether it's a would that you're 0:03:56.240 --> 0:03:58.680 gonna split or just this massive pile of mulch, it's 0:03:58.680 --> 0:04:00.520 not like just for a small garden bed. It's for 0:04:00.680 --> 0:04:02.720 like something like you're doing where you're looking to make 0:04:02.760 --> 0:04:05.760 a big dent. Yes, exactly, all right, Well let's move on. Matt. 0:04:05.800 --> 0:04:08.200 Let's mentioned the beer that we're having on this episode. 0:04:08.200 --> 0:04:11.000 This one is called Tropicalia. It's by Creature Comforts. I 0:04:11.040 --> 0:04:12.800 cannot believe we have never had this on the show. 0:04:12.840 --> 0:04:15.720 I was we got some recently and I thought about 0:04:15.720 --> 0:04:17.200 bringing it down. I was like, well, no, we've already 0:04:17.200 --> 0:04:18.800 had on the show. But then I checked. We have 0:04:18.920 --> 0:04:22.800 never had Tropicalia on the show before almost fisodes in 0:04:24.640 --> 0:04:27.480 and we've avoided what is probably the most classic Southern 0:04:27.560 --> 0:04:30.280 ipa available. So um, yeah, I'm glad we get to 0:04:30.360 --> 0:04:32.200 have this one today. And we'll give our thoughts at 0:04:32.200 --> 0:04:34.200 the end of the episode, but for now, let's get 0:04:34.200 --> 0:04:36.120 onto the topic at hand. We're talking about getting rich 0:04:36.320 --> 0:04:40.320 versus building wealth, and Matt this episode topic it made 0:04:40.320 --> 0:04:43.679 me think about shortcuts A great example of a terrible 0:04:43.720 --> 0:04:47.960 shortcut is smoking in order to lose weight. And uh, 0:04:48.120 --> 0:04:50.839 I guess the joy highly recommends it. I am not 0:04:50.880 --> 0:04:52.880 a physician. I do not recommend that at all, but 0:04:53.240 --> 0:04:55.000 I guess someone could ask the question does it work 0:04:55.360 --> 0:04:57.560 and the answer would be yes. And in fact, it 0:04:57.600 --> 0:05:01.640 does that by lowering your metabolic rate, reducing your appetite. Right, 0:05:01.640 --> 0:05:05.320 it suppresses your desire to eat, and so then, yeah, 0:05:05.360 --> 0:05:07.880 you want to eat less if you smoke regularly, and well, law, 0:05:08.240 --> 0:05:11.039 you lose weight. But smoking, as we all know, it 0:05:11.080 --> 0:05:14.680 comes with legitimate tradeoffs. Right. It costs money. Um? And yeah, 0:05:14.720 --> 0:05:17.120 I know cigarettes in in certain parts of the country 0:05:17.200 --> 0:05:20.880 cost something like fifteen dollars uh for a pack, which 0:05:20.920 --> 0:05:23.240 is really expressive. Well, I think a lot of a 0:05:23.279 --> 0:05:27.000 lot of states have just massively raised the taxation levels 0:05:27.040 --> 0:05:29.880 on some of these what are considered like sin devices. 0:05:29.880 --> 0:05:32.279 It's like a syntax, right, and so yeah, the other 0:05:32.360 --> 0:05:34.360 other trade offs include the fact that you don't smell great. 0:05:34.720 --> 0:05:37.479 On top of that, the kicker, by far the worst 0:05:37.480 --> 0:05:39.960 trade off you're making is the negative health effects like 0:05:40.000 --> 0:05:43.560 heart disease, lung disease, diabetes, and cancer. Um, do I 0:05:43.560 --> 0:05:44.760 need to go on do I need to list all that, 0:05:44.880 --> 0:05:47.280 I don't think so. Um, but yellow teeth, Yeah, yeah, 0:05:47.279 --> 0:05:50.240 that's another one. But basically, that short term benefit of 0:05:50.240 --> 0:05:52.400 shutting a few pounds to maybe be able to fit 0:05:52.480 --> 0:05:54.680 into the genes that you used to be able to 0:05:54.680 --> 0:05:58.880 wear it comes with long term downsides that far outweigh 0:05:59.160 --> 0:06:02.360 the benefit based. It's a terrible trade off. And so yeah, 0:06:02.400 --> 0:06:04.600 that's that's exactly what we would say is happening when 0:06:04.640 --> 0:06:07.600 you prioritize getting rich over building wealth, and and that's 0:06:07.640 --> 0:06:09.640 what we want to talk about the day on the show. Yeah, 0:06:09.680 --> 0:06:11.160 and well, I think a lot of folks might laugh 0:06:11.200 --> 0:06:12.680 at the idea of trying to lose some weight by 0:06:12.720 --> 0:06:16.040 picking up smoking, right, Um, I know, I am like 0:06:16.080 --> 0:06:18.560 just the thought of actually somebody like logically approaching that 0:06:18.560 --> 0:06:20.200 problem and being like, Okay, how do I go about 0:06:20.240 --> 0:06:24.320 losing weight? Should I exercise? Nah? Should I eat less? Nah? 0:06:24.560 --> 0:06:27.240 I'm gonna pick up smoking. Back in the mad Men days, 0:06:27.279 --> 0:06:30.320 I mean, that wasn't okay suggestion, I think, Yeah, and 0:06:30.400 --> 0:06:33.320 so like, at least now today that feels laughable. But 0:06:33.360 --> 0:06:35.040 I think it can be a lot easier to fall 0:06:35.080 --> 0:06:37.400 into the trap of trying to take the shortcut to 0:06:37.440 --> 0:06:40.520 be rich. A lot of folks understandably, they probably want 0:06:40.520 --> 0:06:43.599 to achieve their financial goals more quickly. Maybe your neighbor 0:06:43.800 --> 0:06:45.880 they might drive a nicer car, Maybe your best friend. 0:06:45.880 --> 0:06:47.880 They may have just bought a new place, and you 0:06:47.920 --> 0:06:50.039 want those things too. There might even be a level 0:06:50.080 --> 0:06:52.680 of flashiness that you would like to show off a 0:06:52.680 --> 0:06:56.200 little bit, maybe some fancier clothes or cars, fancier vacations. 0:06:56.760 --> 0:07:00.000 Head out to that exotic location that all sounds pretty nice. 0:07:00.120 --> 0:07:02.240 It will feel nice to to post the pictures on 0:07:02.279 --> 0:07:05.599 social media. Uh. And sure, you might find some short 0:07:05.720 --> 0:07:08.479 term success and be able to buy something really nice 0:07:08.600 --> 0:07:10.720 or maybe take that lovely trip, but the long term 0:07:10.720 --> 0:07:14.360 effects of pursuing a lifestyle like this are ultimately going 0:07:14.400 --> 0:07:17.720 to undermine your financial foundation. The tradeoff of trying to 0:07:17.760 --> 0:07:20.720 get rich quickly in order to inflate your lifestyle almost 0:07:20.760 --> 0:07:24.920 always comes with severe consequences that other have these unattended 0:07:25.080 --> 0:07:28.120 ripple effects, or they keep us from even achieving our 0:07:28.160 --> 0:07:31.080 financial goals altogether. Yeah, that's true, And and we've all 0:07:31.120 --> 0:07:33.560 been subject Matt. If you've been on YouTube at all 0:07:33.600 --> 0:07:37.040 watching Mr be Squid game video or whatever, that's one 0:07:37.040 --> 0:07:38.680 of the most popular videos of last year, and it 0:07:38.720 --> 0:07:41.120 was an interesting one. What we've been subject to pre 0:07:41.240 --> 0:07:44.040 roll ads, right, and and many of those pre roll 0:07:44.080 --> 0:07:46.800 ads feature young people or maybe at least the algorithm 0:07:46.800 --> 0:07:48.600 is serving these up to me because they know my 0:07:48.640 --> 0:07:51.760 interest in personal finance. But it's often a young fellow 0:07:51.960 --> 0:07:55.040 who is like in an incredible mansion, or who's in 0:07:55.080 --> 0:07:58.280 front of this fleet of sports cars and rhythm knows, like, 0:07:58.360 --> 0:08:01.440 we know what Joel wants. He wants that nicknasion, he want, 0:08:01.480 --> 0:08:04.640 he wants the flash and these these hellas they're promising 0:08:04.640 --> 0:08:06.400 that if you just give them some of your hard 0:08:06.440 --> 0:08:08.520 earned dollars, that you too can learn the secrets of 0:08:08.520 --> 0:08:12.880 getting rich quickly and of getting large muscles right and 0:08:12.920 --> 0:08:15.200 a fleet of sports cars right like, and that is 0:08:15.320 --> 0:08:18.520 of course the life that everyone desires. But yeah, the 0:08:18.720 --> 0:08:21.880 problem with this is is twofold one that house might 0:08:21.920 --> 0:08:24.040 just be an Airbnb rental for that day, right, This 0:08:24.120 --> 0:08:26.160 might not be their actual cosa that they live in 0:08:26.280 --> 0:08:28.640 full time. And same with those cars. I bet they 0:08:28.840 --> 0:08:31.520 rented a few of them off to row to uh 0:08:31.960 --> 0:08:34.080 make it look like they were rich even though they're 0:08:34.120 --> 0:08:37.319 not actually. But the problem is that the opposite of 0:08:37.360 --> 0:08:40.480 what they promise actually happens, right, that thousands of people 0:08:40.600 --> 0:08:43.720 give these people money, allowing that person to then be 0:08:43.720 --> 0:08:46.800 able to afford the flashy lifestyle while creating a real 0:08:46.840 --> 0:08:50.240 financial setback for themselves. So I think sometimes in our 0:08:50.280 --> 0:08:54.079 pursuit of quick gains, of of riches, often times we're 0:08:54.120 --> 0:08:56.600 making other people rich and making ourselves Poor's right, we're 0:08:56.600 --> 0:08:59.600 shooting ourselves in the foot, were undermining our own efforts. Man, 0:09:00.040 --> 0:09:01.839 One thing to mention here, too, Like, it doesn't have 0:09:01.960 --> 0:09:04.960 to even be like the slashy lifestyle that you're aiming for. 0:09:05.400 --> 0:09:07.280 You might just want to be able to afford a 0:09:07.320 --> 0:09:10.880 more modest, you know what you might consider a normal lifestyle. 0:09:11.120 --> 0:09:13.280 Like you're not looking to own a mansion or lambo. 0:09:13.320 --> 0:09:15.680 You're just maybe you're tired of living in a studio apartment. 0:09:15.679 --> 0:09:18.520 Maybe it's just like a decent three too, that's not 0:09:18.640 --> 0:09:21.280 a ridiculous commute away from your job that you're after. 0:09:21.600 --> 0:09:24.800 But either way, the sirens song of quick riches to 0:09:24.880 --> 0:09:26.960 achieve whatever it is that you're after, it's easy to 0:09:27.000 --> 0:09:29.840 get caught up in, and it has this real possibility 0:09:29.840 --> 0:09:32.600 of getting us off track and actually keeping us from 0:09:32.600 --> 0:09:35.080 our goals. We go from playing the long game to 0:09:35.120 --> 0:09:37.040 the short game, and it messes with her head and 0:09:37.200 --> 0:09:39.120 it messes with our bank account. Okay, so before we 0:09:39.200 --> 0:09:40.600 move much further, man, I think we do have to 0:09:40.640 --> 0:09:43.559 give some some definitions so people can kind of understand, 0:09:43.559 --> 0:09:46.240 because because when you when you look at the love definitions, man, 0:09:46.280 --> 0:09:47.800 I know, you gotta like lay it out there that way, 0:09:47.840 --> 0:09:49.480 we're all on the same page, that's right. And when 0:09:49.480 --> 0:09:51.480 you look at the definitions on let's say you got 0:09:51.520 --> 0:09:53.280 a dictionary dot com or you open up your old 0:09:53.280 --> 0:09:57.720 school read Miriam Webster's dictionary that that's you know, sitting 0:09:57.720 --> 0:10:00.360 on your shelf, they actually look like synonyms, right, and 0:10:00.400 --> 0:10:03.280 so rich and wealthy are actually going to kind of 0:10:03.480 --> 0:10:07.280 um sound really similar when you're looking at at the 0:10:07.320 --> 0:10:10.160 textbook definition. So yeah, in this episode, we're kind of 0:10:10.160 --> 0:10:13.520 offering up our own urban dictionary style definition. We're not 0:10:13.559 --> 0:10:16.400 necessarily going with the classic definition because I think in 0:10:16.440 --> 0:10:18.800 the common parlance, the way we talk about these terms, 0:10:18.960 --> 0:10:21.320 at the way we discuss them just on you know, 0:10:21.400 --> 0:10:24.160 societal level, we see a difference, right, And so you 0:10:24.200 --> 0:10:27.360 and I we think of getting rich as the thoughtless 0:10:27.440 --> 0:10:30.840 thirst for more and to get there quickly, whereas wealth 0:10:31.000 --> 0:10:33.160 on the other hand, is the desire to be able 0:10:33.160 --> 0:10:36.280 to fund and sustain a life that's meaningful to you. 0:10:37.040 --> 0:10:39.320 And so if you're in the pursuit of riches, really 0:10:39.600 --> 0:10:43.120 you kind of never really quite arrive. More is always good, 0:10:43.160 --> 0:10:45.760 and in fact it's necessary, right, It's kind of like 0:10:45.800 --> 0:10:48.080 the hamstral wheel that keeps on turning. But if you're 0:10:48.200 --> 0:10:51.480 building wealth, it's really just about being able to fund 0:10:51.600 --> 0:10:54.680 the lifestyle that fits your goals, and oftentimes those goals 0:10:54.720 --> 0:10:57.840 are more modest. And so there's this realization I think 0:10:57.880 --> 0:11:00.960 when you're building wealth versus attempting to it rich, that 0:11:01.120 --> 0:11:02.960 more money alone isn't going to be the thing that 0:11:03.000 --> 0:11:06.000 makes you happy, but earlier looking at the holistic self 0:11:06.120 --> 0:11:09.200 um the physical, the emotional, and spiritual well being, which 0:11:09.200 --> 0:11:11.960 are crucial elements to living a good life too. And 0:11:11.960 --> 0:11:14.360 it's also important for for all of us who are 0:11:14.360 --> 0:11:16.440 playing the long game that you have to be able 0:11:16.440 --> 0:11:19.080 to acknowledge the getting to that point. It takes time 0:11:19.120 --> 0:11:21.920 and it takes intentionality. Yeah, and you know that being said, like, 0:11:21.960 --> 0:11:23.920 there's nothing wrong with having a fancy car as long 0:11:23.960 --> 0:11:25.880 as you have the wealth to support that. And so 0:11:26.000 --> 0:11:30.280 especially early on the order in which you take actions 0:11:30.480 --> 0:11:33.600 with your money matters significantly, and so early on, if 0:11:33.640 --> 0:11:36.520 your money is tied to you know, different items like cars, 0:11:36.840 --> 0:11:40.400 fancy clothes, different things like that that are depreciating, that 0:11:40.520 --> 0:11:43.160 is also sort of the epitome of riches as opposed 0:11:43.200 --> 0:11:47.760 to that same money instead tied to income generating assets, 0:11:47.800 --> 0:11:49.800 like if that money was invested in the stock market, 0:11:49.840 --> 0:11:51.679 or if that money was invested in real estate, and 0:11:51.679 --> 0:11:54.120 so that's also one of the major differences as well. Yeah, 0:11:54.160 --> 0:11:57.640 there's a difference between buying a Lamborghini or a Ferrari 0:11:57.800 --> 0:12:01.120 or a Rumian truck when you're twenty three, just starting 0:12:01.120 --> 0:12:02.839 out and you're trying to make an impression on the 0:12:02.840 --> 0:12:05.199 people around you, even though you don't have the income 0:12:05.360 --> 0:12:09.360 or the assets to justify that, versus buying it after 0:12:10.080 --> 0:12:12.559 twenty years of making smart moves with your money being 0:12:12.559 --> 0:12:15.160 able to pay cash for that, not financing for thirty 0:12:15.280 --> 0:12:17.520 or forty years. Well, yeah, when it's a drop in 0:12:17.559 --> 0:12:19.880 the bucket, basically when it comes to your net worth, 0:12:19.920 --> 0:12:21.480 I guess if it depends if you're rolling in the 0:12:21.480 --> 0:12:23.120 money and so like, maybe you can do that in 0:12:23.120 --> 0:12:25.439 fifteen years. It's so good for you. I mean, I know, 0:12:25.480 --> 0:12:27.280 there's people out there who are living that kind of 0:12:27.320 --> 0:12:28.920 life right where they're thirty five years old and they're 0:12:28.960 --> 0:12:31.400 driving a hundred thousand dollar vehicle. I just have a 0:12:31.400 --> 0:12:34.600 hard time wrapping my head around that personally. But a 0:12:34.679 --> 0:12:36.920 huge part of the difference here as well, it's it's 0:12:36.920 --> 0:12:39.240 just the focus on the short term versus the long term, 0:12:39.480 --> 0:12:41.920 right Because like someone who is focused on getting rich 0:12:42.480 --> 0:12:44.760 and amassing a fortune in short order, they might be 0:12:44.840 --> 0:12:47.800 tempted to play the lottery or or download sports gambling 0:12:47.840 --> 0:12:50.000 apps or Flight of Vegas in order to distrike it rich, 0:12:50.679 --> 0:12:53.840 or even to speculate on the newest cryptocurrencies or memestocks 0:12:53.840 --> 0:12:56.880 and hopes of making a quick return. They want that 0:12:56.920 --> 0:12:59.719 money to materialize out of thin air, as opposed to 0:12:59.800 --> 0:13:02.440 the person who's pursuing the wealth. They're gonna hot for 0:13:02.559 --> 0:13:05.120 just a more time tested strategy that doesn't necessarily put 0:13:05.160 --> 0:13:07.880 their capital in harm's way. I'm not saying that they 0:13:07.880 --> 0:13:10.520 don't take any risk, but that they're willing to take 0:13:10.600 --> 0:13:14.839 calculated risks in the slow pursuit of those goals. It's 0:13:14.880 --> 0:13:18.520 kind of the old tortoise versus the hair story. Oftentimes 0:13:18.640 --> 0:13:21.760 the hair that's somebody who's seeking the riches, right, Like 0:13:21.800 --> 0:13:25.000 they're looking to to have what they want now, as 0:13:25.040 --> 0:13:26.960 opposed to the tortoise who's willing to put in the 0:13:27.000 --> 0:13:30.199 time to stick with methods that are sustainable. And it 0:13:30.280 --> 0:13:31.920 kind of goes back to the whole smoking example that 0:13:31.920 --> 0:13:34.240 you gave earlier, Joel, Right, if you're looking for maybe 0:13:34.240 --> 0:13:37.520 a more immediate results, it's like, Okay, how can I 0:13:37.600 --> 0:13:39.599 trick myself into eating less? Well, maybe I should just 0:13:39.600 --> 0:13:43.760 start smoking now versus healthier and more sustainable behaviors. It 0:13:43.760 --> 0:13:45.640 makes me think of one of my favorite movies, the 0:13:45.679 --> 0:13:48.839 old school Willie Wonka and the Chocolate Factory the Gene 0:13:48.880 --> 0:13:51.280 Wilder of course, because let's the only one worth watching. 0:13:51.520 --> 0:13:55.840 But Charlie Buckett. He he does not take go drink 0:13:55.880 --> 0:13:58.080 from the Chocolate river like Augustus Gloup does, and he 0:13:58.120 --> 0:13:59.640 falls in and he gets sucked in, and you know 0:13:59.679 --> 0:14:01.760 his his trip to the chocolate factory ends really quickly. 0:14:01.960 --> 0:14:05.320 All these kids deciding that they want the quick candy 0:14:05.400 --> 0:14:07.079 in front of them versus playing the log game, and 0:14:07.120 --> 0:14:09.160 who ends up owning the Trac Chocolate Factory in the 0:14:09.240 --> 0:14:12.120 end is Charlie, right, So yeah, he's the big winner 0:14:12.120 --> 0:14:13.760 in that scenario. But you know, we've got more to 0:14:13.800 --> 0:14:18.040 get to, including the kind of unhealthy behaviors that prioritizing 0:14:18.120 --> 0:14:20.640 riches more than building wealth can lead to. We'll we'll 0:14:20.680 --> 0:14:31.800 get to that right after this. We're back and we're 0:14:31.800 --> 0:14:35.760 talking about getting rich versus building wealth, and even you know, 0:14:35.800 --> 0:14:37.440 let's let's point out to even the words that we 0:14:37.520 --> 0:14:42.120 chose there, those verbs of getting rich versus building wealth. 0:14:42.440 --> 0:14:44.720 Like when you get something, you just want it, like 0:14:44.760 --> 0:14:46.200 you're just like give me, gimme, gimme, you know, like 0:14:46.240 --> 0:14:48.160 it makes me, like you were just talking about Willy Wonka, 0:14:48.240 --> 0:14:51.400 it makes me think I want it now seriously, as 0:14:51.440 --> 0:14:53.520 opposed to like when you think about building wealth, like 0:14:53.600 --> 0:14:56.880 it's just something that it's methodical, it's something that takes 0:14:56.880 --> 0:14:59.560 the plan, it takes discipline, and it takes some time 0:14:59.600 --> 0:15:02.000 to actually execute that. And so that's why we're talking 0:15:02.040 --> 0:15:04.520 about this today because there is a significant difference between 0:15:04.560 --> 0:15:07.960 these two. And let's talk about looks versus reality for 0:15:07.960 --> 0:15:10.040 a second as we're talking about these two concepts, because 0:15:10.040 --> 0:15:13.320 it's easy to actually look rich, right, you might be 0:15:13.320 --> 0:15:15.520 living paycheck to paycheck, but everyone around you they think 0:15:15.520 --> 0:15:17.920 that you're crushing it. Wealth on the other hand, it's 0:15:18.120 --> 0:15:20.880 much more like I would say, kind of stealthy, right, 0:15:20.880 --> 0:15:23.120 Like it's under the radar. Makes me think of a 0:15:23.120 --> 0:15:25.640 guy like Warren Buffett. If you saw the house that 0:15:25.680 --> 0:15:27.120 he lives in, if you saw the breakfast that he 0:15:27.160 --> 0:15:29.680 eats every morning, which I'm pretty sure it's still McDonald's. 0:15:29.680 --> 0:15:31.560 I don't know how he's in his nineties and eating 0:15:31.680 --> 0:15:34.400 McDonald's every morning. Maybe it's the dieta Champions, the breakfast 0:15:34.400 --> 0:15:36.680 of Champions. It's used to be weedies but no longer. 0:15:36.840 --> 0:15:38.400 What if there's some study that comes out in light 0:15:38.400 --> 0:15:40.480 ten years that talks about because of the amount of 0:15:40.480 --> 0:15:44.880 preservatives with it with the McDonald's, that it's actually causing 0:15:44.920 --> 0:15:48.000 people to also become preserved and mummified. Yeah, they really 0:15:48.080 --> 0:15:49.880 going to do an autopsy when Buffett dies at like, 0:15:50.760 --> 0:15:54.080 and they're gonna realize that it was all those is 0:15:54.200 --> 0:15:57.080 the McDonald's, but nothing mcgriddles. You want to stay away 0:15:57.080 --> 0:15:59.880 from those because of the saturation. Yeah, I think that 0:16:00.200 --> 0:16:02.640 bad for the artery is definitely. No. But like seriously, 0:16:02.640 --> 0:16:04.520 like we're talking about Warren Buffett, Like if you look 0:16:04.520 --> 0:16:06.560 at the way he dresses, right like, you wouldn't assume 0:16:06.800 --> 0:16:10.640 that he's loaded, but the oracle of Omaham he is 0:16:10.640 --> 0:16:13.520 worth more than a hundred and fifteen billion dollars right now, 0:16:13.800 --> 0:16:15.760 give or take a few hundred million. That is, of 0:16:15.800 --> 0:16:19.240 course an outlier example. But the reality is that the 0:16:19.320 --> 0:16:21.160 more that you try to convey to the world that 0:16:21.200 --> 0:16:24.680 you have money, since it basically all comes via consuming 0:16:24.680 --> 0:16:28.080 and owning more in particular items that depreciate and value quickly, 0:16:28.160 --> 0:16:30.520 the less money that you actually have in the bank, 0:16:30.800 --> 0:16:33.160 and that means the less financially secure that you are. 0:16:33.240 --> 0:16:37.800 In reality, that's true. Yeah, you are prioritizing looks over substance, 0:16:37.920 --> 0:16:40.160 and and let's be honest, Matt, looking like you have 0:16:40.240 --> 0:16:42.640 money it can actually become more of a headache than 0:16:42.640 --> 0:16:45.560 it seems on the surface. If if it looks like 0:16:45.600 --> 0:16:47.920 you're swimming in dough, people start to assume that you're 0:16:47.920 --> 0:16:50.200 swimming in dough because it looks like you are, of course, 0:16:50.280 --> 0:16:53.080 and they might treat you accordingly. There is um I 0:16:53.080 --> 0:16:55.560 hate to resurrect an old rap song, but more money, 0:16:55.560 --> 0:16:59.320 more problems. Pete Puff Daddy in that Peviga says, just 0:16:59.360 --> 0:17:01.120 the way it is, that's how it that's how it goes, 0:17:01.480 --> 0:17:04.920 and and so that's why it does you know Biggie 0:17:04.960 --> 0:17:06.880 that's well, it's not that was Biggi's rab but puff 0:17:06.920 --> 0:17:10.440 Daddy was heavily I looked up on YouTube. It's got 0:17:10.440 --> 0:17:13.439 over nine million views. Can you believe that he is 0:17:13.440 --> 0:17:16.720 the quite the philosopher and poet. But it's but it's true. 0:17:16.760 --> 0:17:19.080 It's like to get to your point because what happened 0:17:19.080 --> 0:17:21.800 to Biggie dude was murdered and it has a lot 0:17:21.840 --> 0:17:24.080 to do with money, that's true. Yeah, money can create 0:17:24.080 --> 0:17:26.800 real problems. And I'm not not suggesting that your pursuit 0:17:26.800 --> 0:17:29.879 of riches will lead to your early demise, but but 0:17:30.000 --> 0:17:32.200 it is one of those things worth considering, like how 0:17:32.240 --> 0:17:34.440 do people perceive me? Do they treat me differently? And 0:17:34.680 --> 0:17:36.879 that's why we would suggest that like stealth wealth is 0:17:36.920 --> 0:17:40.840 such a better goal to have than like ostentatious riches. 0:17:41.080 --> 0:17:43.919 And uh yeah, because the family in societal pressures that 0:17:44.000 --> 0:17:47.760 often come from having more money than your peers, they 0:17:47.800 --> 0:17:49.840 can be tougher to deal with and you might assume 0:17:50.400 --> 0:17:52.280 and for that reason, yeah, keeping it on the d 0:17:52.480 --> 0:17:55.960 L is actually preferable. I think that that term stealth wealth, 0:17:56.000 --> 0:17:58.320 Matt is I'm glad it's kind of come into vogue. 0:17:58.359 --> 0:18:00.440 In the last four or five years, because it is 0:18:00.480 --> 0:18:02.520 one of those things where where that's a that's a 0:18:02.520 --> 0:18:04.960 good thing to strive for. Um, spending some of your 0:18:04.960 --> 0:18:08.040 wealth is fine, but but flaunting it, I would say, 0:18:08.160 --> 0:18:10.600 I would suggest to something to avoid. Yeah, there's a 0:18:10.600 --> 0:18:12.840 big difference between those two. And this is why we 0:18:12.880 --> 0:18:15.600 see negative effects, uh, you know with those who win 0:18:15.640 --> 0:18:18.280 the lottery as well. Right, because it's really difficult when 0:18:18.320 --> 0:18:21.080 you all of a sudden have I don't know any 0:18:21.119 --> 0:18:24.199 millions of dollars, Like, it doesn't matter who you are. Well, 0:18:24.280 --> 0:18:26.480 it's easy, come, easy, go to right it. It's it's 0:18:26.480 --> 0:18:29.560 different when you have four million dollars because you've been 0:18:29.600 --> 0:18:31.919 doing the hard work for thirty years. It's it's a 0:18:31.920 --> 0:18:33.960 whole lot different if you haven't been doing the hard 0:18:33.960 --> 0:18:36.000