Wealth and Riches Are Two Different Things

At first pass, the headline can be confusing. Just how different can 'wealth' and 'riches' really be? Using both words in the same sentence can seem redundant. But the truth is, they're very different things. Your life can be very rich, even if your pocketbook is empty, depending on your perspective.

Take Action Tip for Today

Here's a list of realistic things you can do to improve your potential for wealth and riches, however you define them. And we're not talking dollars as much as we're talking sense.

1. Decide what wealth and riches mean to you. What are your needs? Wants? Secret desires? It goes back to setting goals (PDF, 19K) and then setting out to achieve them.
2. Start saving. Whether it's 15 dollars a week in a savings account or 15 percent of your salary in a 401(k) retirement plan, you've got to start saving something now. Earning interest on your interest by allowing investment returns to build over time is what it's all about (unless you count the hokey pokey).
3. Reduce your debt. Be methodical about paying off credit cards, college loans, car loans, home equity loans and loan sharks. Consider paying off loans with the highest interest rate first to potentially save money in the long run (debt tracker worksheet (PDF, 22K)).
4. Create a mission statement. Take a look at your values (PDF, 60K) to decide what's truly important. Whether it's family, community service, faith, integrity or something else. Then move ahead with confidence once you have an understanding of what makes you do that thing you do.
5. Share your resources. When you volunteer or donate money to a good cause, you always get back more than you've invested.
6. Create a budget and stay on it. Cut up your plastic, stop shopping, trade your car for a cheaper model, be creative. There are all sorts of tools and apps and worksheets (PDF, 211K) online to get you started.
7. Take responsibility for your personal fortune. For example, find out how your employer-sponsored retirement plan is allocated (psst: open the statements). Learn more about protecting your family with insurance. Review step #2 above.
8. Take care of yourself. The longer you remain healthy, the longer you'll be able to earn an income and stay active in your community.

More Resources

If you're looking for direction, we've got a 'wealth' of free workshops for a variety of life stages that can help you live richly now. Find these and other free workshops in your area.

• Making a Difference: Sharing Your Time, Talents and Treasures
  Bring your family to this interactive workshop and create a personal giving plan unique to your life. It will make your giving more meaningful.
• My Legacy Matters
  Retirees gain an understanding that their legacy is much more than money – it's values, traditions and life lessons as well. Participants create a plan to ensure their legacy is carried out.
• Charitable Giving: Making a Difference by Giving Back
  If you're nearing retirement or already there, your charitable decisions today can have an impact well into the future. Learn about financial tools that may decrease your taxes and/or supplement retirement income.

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