On... Rich but Still Working?

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If your money doesnt work for you, then you will have to work until you die - Warren Buffet.


What is the difference between being rich and being wealthy? There are many definitions that I have seen. But one (out of many that I have seen), that I like is that Rich is having a high income, while Wealthy is having a high net worth of assets. It's good to be both Rich and Wealthy, but if I had to choose, I choose Wealthy.


I was having a conversation with my mom in-law and I brought up the topic of retirement. My brother and sister in-law's are not too fat from retirement age. They're are also quite rich by my standards. So, I would expect them to retire soon and enjoy the spoils of their labor. To my surprise, my mother in-law told me "Thats not the case. if they stop working, then where is the money coming from?"


Buffet words rang through. No matter how much you earn, if you don't have Financial Assets, then you have to work forever. It could even be a double whammy if you have a high income job but not invested in Assets. Why? Because (Usually but Not Always), there is a tendency for high income earners to also have a high expense lifestyle.


On the other hand, if you have investment in Financial Assets, your path to retirement is much more clear. There will be a day/date when you can stop working. That is the path that I'm going down. And what is the date/day with such a plan? As long as the growth of your Invested Capital is more than your Annual Expenses, then you can call it quits.


It seems like such a paradox, If you're rich then you dont have to work. But If you dont work, then you can't continue to be rich. If thats the case, what is the point of being rich. Well, the point I think is that when you are Rich, you have a lot of Capital to deploy. Because without Capital, you wont be able to invest.


I have no intention of Working Till I Die. Therefore, I have to make my money work.       

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