Can you be rich but not wealthy?

100%.

In Chapter 3, Ben and Bryce reveal why true wealth isn’t about how much you earn; it’s about how long you can live without working.

They break down the four types of wealth (Financial, Physical, Social & Time) and argue that being healthy with great people around you is worth more than any bank balance.

Plus: a quote you’ll never forget:

“A healthy person has a thousand goals. A sick person only has one.”

 

P.S. Ready to design your own path to financial freedom?
Grab your copy of How to Retire on $3K a Week now! 👉 howtoretireon3k.com.au

Timestamps

  • 0:00 – Chapter 3: Rich vs Wealthy (and why they’re not the same!)
  • 0:52 – If your passive income covers your lifestyle, you’re wealthy
  • 1:30 – The Four Types of Wealth every human needs
  • 2:10 – Physical wealth comes first or nothing else matters
  • 2:55 – Jim Collins on “Life is people”
  • 3:30 – What Property sits in the Risk/Reward spectrum
  • 4:05 – Sneak peek at Chapter 4: Why Property is our chosen vehicle

Transcript

Bryce
Hey there folks, welcome back to the How to Retire on $3,000 Per Week podcast. I’m here with my co-author, Ben Kingsley. We’re chatting today about chapter three in the book, What is Wealth? And we covered off some key themes here, Ben. The two that I wanna chat about is one, what’s the difference between rich and wealthy? And the other one is the four types of wealth. And I like really ramming that home that if you have, if your expenses, are actually less than the passive income that come in, you’re wealthy. Whereas if you’ve just got a heap of money in the bank and over time you spend more than you earn, you’re eventually gonna run out of money. And that’s the difference between rich and wealthy.

Ben
I think so and I think, know, like wealth, most people have this concept of what wealth is, it’s just basically having a lot of money or access to a lot of money, right? Or a lot of assets. And I think what we’re trying to do is move the dial on that conversation to talk to that story around the four types of wealth.

Bryce
Well, my favourite sentence in this whole chapter is, without physical wealth, pursuing social, financial or time wealth becomes infinitely harder. A healthy person has a thousand goals, but a sick person only has one. So I think as you pick up a book like ours, it’s pretty easy to sort of focus on the financial, but we wanted to highlight there’s social wealth, there’s physical wealth, and there’s also time wealth as well as financial wealth. I think that they were really important. And as Jim Collins says…

Ben
You’re just about to steal my little favourite sentence in the book is Jim Collins, author of Good to Great, and also the flywheel concept that we talk a lot about. Life is people.

Bryce
My wife and I say that a lot. Because sometimes you can walk around, you can see cars and buildings and boats and…And think that life is those things, but life is people. The quality of your life is determined by the quality of the people that you have around. And if you think about some of the best times you’ve had in your life, it’s usually around quality humans.

Ben
You want to share it with someone, don’t you? I mean, how much value do you put on sitting around a campfire and chewing the fat? And look, those campfires can be in the Arizona desert. They can be, obviously, in the Simpsons. Or they can just be in your backyard and you’re still having a great time doing that so I think for us again, it reinforces the context of what we’re on about here in terms of that. But also in this chapter, when you are talking about building wealth, you are introducing this concept of risk and reward and so the very fundamental principles are, the greater the risk, the greater the reward. We’ve obviously taught people for 30 plus years and done it ourselves 30 plus years where it is about residential property because we feel like that has a low level of risk, but still has risk, don’t get me wrong. There’s still regulatory risk, there’s still, you know, government and all of those sorts of things come in, climate risk is gonna be a thing. But the point being is, what we’re trying to do is build context in terms of, right, if this is a wealth creation book where property is the vehicle, we’ve got to set that story up and we’ve got to put context around where property, direct residential property sits in that story.

Bryce
Well said, Ben, and that’s a pretty good segue for what we’re going to cover next in our next episode, “Why Property?” in Chapter 4.

Ben
Now, before we move on to “Why Property?” Bryce , there is a great little diagram that we spent a bit of time, nice little framework that we put together on page 35 so in the supplementary PDF if you’re checking that out now have a look at that, study it because work and earn, invest and grow and protect and sustain and then the four primary ways to generate money and obviously what that money does in terms of wealth creation. I think a lot of people need to get that foundation right in their head before they move forward.

Bryce
And a little shout out to our very own Stig who was part of the working group to pull that all together because in this chapter there’s a fair bit of stuff that you need to integrate but then being able to pull it together on that diagram. I agree. It’s a ripper. Is just gonna make sense. So folks. Page 35 of the book or in your supplemental PDF. That is definitely one that you wanna study. check that out. Ben, it’s time for us to move on to the next chapter, which is Why Property. So looking forward to doing that. And folks, if you’re playing along at home, if you wanna go to howtoretireon3k.com.au, we’ll tell you how to get your audiobooks, how to get access to the books so you can do that. But mate, looking forward to ripping into the next chapter.

Ben
(Singing) Why, why, why property?

Bryce
Wow, starting and stopping that way. How lucky is our audience.