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Key Differences Between Rich and Wealthy People

Being rich and being wealthy are often seen as being the same thing. After all, people who are rich or wealthy tend to have more assets and greater financial freedom than the typical person. In reality, there are some major differences that define what it means to be rich vs. wealthy. If your financial goals include rising to the ranks of the rich or growing wealth, it’s important to know how they compare.

What Does It Mean to Be Rich?
Income is often used as a standard when measuring what it means to be a rich person. So what income is considered rich?
If you’re looking at the top 1% of earners, then you’d need an annual income of $540,009 to be rich, according to the Internal Revenue Service (IRS). The Economic Policy Institute (EPI) defines the top 1% as people who earn $819,324 or more per year.
What Does It Mean to Be Wealthy?
Wealth is often defined in terms of net worth. Net worth is a measurement of the difference between your assets and liabilities.

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