What’s the Difference Between Rich and Wealthy?

What’s the Difference Between Rich and Wealthy?

Rich or wealthy?

Maybe you think these are two different words for the same thing, but they aren’t. 

You can almost hear it in the word. One is like a rush. It’s material. The other is more solid and has more of a psychological quality to it. 

So what exactly is the difference? Here are seven…

1. Rich People Have a Lot of Money

You can be a top lawyer or a skilled surgeon who gets a high monthly income but at the same time builds up debt and spends more money than comes in.

A person can easily be rich, but close to broke. 

In the media, we talk about rich pop stars, but many of them go bankrupt when they stop having success and when their income drops. 

2. Wealthy People Have a Lot of Assets 

Being wealthy means building wealth that is a lot more than just cool cash. 

You’re not wealthy if you risk going bankrupt because of your lifestyle. 

Wealthy people possess assets that work for them. That may be stocks and shares, but it can also be rental properties or a business.

3. Wealthy People May Earn a Lot Less Than Rich People

Perhaps it will surprise you that Warren Buffett – who is one of the wealthiest men in the world – only receives an annual salary of 100,000 USD. 

This is actually just about what a skilled business journalist earns. 

Being wealthy doesn’t mean you’re swimming in cash every month. 

Wealthy is more about building, whereas rich is much more about the cash flow and the lifestyle. 

If a person can live off the return on their investments, that person is pretty wealthy.

4. Wealthy People Have More Freedom

A wealthy person has a great deal of freedom to choose the lifestyle they want.

A wealthy person is financially independent – or close to being so. Therefore, they are not forced to stay in a job where they are not thriving. They can live where they want and pretty much do what they want. 

A rich person – such as a supermodel, a brain surgeon, or a stockbroker on Wall Street – can easily be tied to a job.

5. Rich People Own a Lot of Status Symbols

When we think of the typical rich person, there are quite a few things that go along with that image and lifestyle.

Think a Porsche, mansions, a private jet, or a yacht.

To be considered rich, you need to look rich. It’s about living an expensive lifestyle.

That’s why rich people often own many things that pull money away from their finances.

Money may pour out of their pockets faster than it comes in… which is a sure path to insolvency down the road. 

6. Wealthy People Have More Stability

Wealthy people have peace of mind and can therefore sleep peacefully at night, even when going through a turbulent moment.


Because they don’t have to worry about the state of their finances. 

No one can threaten their lifestyle by firing them or cancelling a contract. They remain solid even if the immediate things around them change. 

A person with a high income but an expensive lifestyle leads a more unstable and unpredictable life. 

7. Wealthy People Have More Quality Time

Time is the scarcest resource that we have. We only have so much time no matter how much money we have. 

Rich people may be forced to stay in their day jobs, but wealthy people can choose whether to keep their jobs.

Therefore, there is a higher probability that wealthy people have more quality time in their lives. 

There is a greater likelihood that they’ll get more travel, experiences, and time with people they love.

If they have a job, it’s an active decision they made and probably something they choose because it brings them joy or a sense of fulfilment. 

Perhaps they’ve created their own job by establishing a business or a freelance practice. Maybe they’ve chosen to turn a hobby into a full-time job.

How Do You Become Wealthier?

If you want to be rich, you have to make more money. It requires a pay raise or a new job. It’s often dependent on someone else’s decision. 

The good news is, getting wealthy is actually more within your control than getting rich is. 

You really just have to do three things:

1. Cut back on your expenses and make sure you spend less money than you earn.

2. Put the savings in assets, such as equities.

3. Repeat every month.

You can learn more about investing in the best type of assets, namely stocks, in my free e-book here.

10 Steps to Setting Great New Year’s Resolutions

10 Steps to Setting Great New Year’s Resolutions

How did last year’s New Year’s resolution go.

Maybe you just forgot about it as the champagne bottles were packed away and life resumed.

What’s going to make this year any different?

How do you make your decision stick?

No worries, I’ve got you covered. 

Here are ten steps for successful goal-setting to make 2021 your breakthrough year. 

1. Make It Be Measurable and Specific

New Year’s resolutions are often vague. Real goals are specific and measurable.

It’s the difference between saying,

“I want to start running in 2021”

and saying,

“On September 26,, I’ll run the Berlin Marathon in less than 3.5 hours.”

Ask yourself, what specifically do you want to achieve this year?

By how much do you want your fortune to grow?

When talking about investing, it makes sense to set up long-term goals as your primary goals. Let’s say 5-10 years. It makes you less vulnerable to fluctuations in the market. So let’s begin there. 

How rich do you want to be in five years? In ten years?

Be really specific. 

2. Be Ambitious 

Big goals are a lot more compelling.

Cultivate your inner Napoleon. At least your inner Napoleon Hill, the mastermind behind Law of Attraction.

He says that ambitious goals are like strong fires, while small goals are weak fires.

There’s not a lot of energy in mediocre goals.

You have to be a bit audacious to become motivated.

Set a goal. Then double it. Or quadruple it.

How does it feel now?  

3. Have a Strategy 

If you’re training for a marathon, you’d better have a running schedule.

You can’t show up on September 26 and expect to be successful.

You’ll have to know how many days a week to run, when to train intervals, when to train stamina, and when to rest. You need to know what kind of food to eat before long runs. You’ll even have to plan what to wear when going on long runs. 

The same with investing.

You need a plan and a strategy.

How are you going to invest? Which strategy will you follow? Value investing? Passive investing? Day trading? Momentum investing? Copy trading? Pick a strategy. 

You’ll also need to plan how much money you’ll save for investing purposes.

4. Set up Subsidiary Goals

If you’re training for a marathon, it’s a good idea to measure your progress with other running events than the major one.

You’ll want to sign up for a half marathon and even shorter runs throughout the year to see how you fare in a competition and how fast you’ve become.

When you’re investing, you want to measure your progress at least every quarter.

Investing is a slow sport. Kind of like watching grass grow.

You don’t notice any difference from day to day.

But if you take a picture of a plant, you’ll notice a huge difference over time.

So take stock of stocks, so to speak. Track your progress by measuring your wealth. It’s enormously motivating. 

5. Commit Yourself  

You’ll only be successful if you promise yourself that you’ll stick to it whatever it takes.

You have to make that promise to yourself. 

Whenever I’ve accomplished something in life, it’s taken sheer determination and a promise to really do it.

If you’re not committed, like really committed, you won’t have success. It’s that simple.

6. Have a Purpose 

You have to know why you’re really doing it.

Let’s take running as an example again.

Hopefully, you don’t run just for the sake of running.

Hopefully, there’s a bigger purpose, which could be an intent to live a long and meaningful life without lifestyle diseases that could cripple you.

The same with investing.

Ask yourself why you invest. “To make more money” is not an answer. That’s like saying you run to become faster.

Ask yourself why you want to make more money.

When you get a new answer, ask yourself why again. Keep on doing that until you reach the last answer. In the end, you’ll reach your true purpose.

It might be avoiding stress. It might be having more choices in life. It might be securing a future for your children.

The purpose is different for each of us.

For me, it’s a combination of things. It’s about creating generational wealth so my children and grandchildren (to come) can make the best choices without being restricted. It’s also about securing my own freedom and finally it’s also about wanting to influence the world through my investments.

7. Visualize Your Success 

If running that marathon is your goal for 2021, visualize yourself crossing that finish line.

Hear the cheering, feel the sweat and adrenaline. Notice how you feel. How is it going to change your life? Affect your relationships? Your mood? 

If investing is your goal, see yourself reaching your target. Notice how it feels. Who are you going to be when you get there? Reaching goals changes our inner script. It changes who we are psychologically. 

Visualize it until you actually live it. Taste it. Believe in it. 

8. Face the Monster

Avoidance is also a choice.

If you don’t run, you are voting for lifestyle diseases.

If you don’t invest, you are voting for poverty.

Create a worst-case scenario. What’ll happen if you don’t take action? Visualize that too, and decide that it’s not who you are anymore.

I visualize my own diseased mother who spent her last decades on government subsidies, locked in an apartment, suffering from a bad hip and rheumatism. Being unable to afford a taxi, a meal at a restaurant or any extra help. Being very dependent on her children for support.

I’ll never put my boys in that situation.

That’s not who I am.

Therefore, I invest and take care of my finances.  

9. Get Educated       

If you want to run a marathon, you’ll probably read some blogs and books about the best nutrition, the best running schedule, the best running equipment. 

You’ll want to avoid making beginner mistakes that may result in you getting injured and failing to reach your goal of running the marathon. 

The same with investing.

You need information so that you can be the best investor possible and avoid making silly mistakes that could cause you to lose your money.

Ever considered taking an investing course?

Maybe now is the time. It’s money well spent. 

10. Get Some Running Mates  

Running is more fun if you join a club and find people to run with.

The same goes for investing.

You’ll stick to it if it becomes a social event and if you meet people who will hold you to your new standards.

This is another reason for taking an investing course. This is where you’ll meet your peers.


Where does your journey begin today?

Right here with me.

You begin by reading my e-book.

Then you join my Facebook Group

Don’t forget to read my e-book Free Yourself. You can get it here.


How to Gift Shares for Christmas

How to Gift Shares for Christmas

Why not give shares for Christmas or birthday presents?

They don’t clutter or take up space, and it’s the type of gift that keeps on giving.

If you select shares in some good companies, they’ll hopefully increase in value over time.

But more importantly than that, you are gifting interest, knowledge, and experience with the stock market.

Hooked? So how do you actually give shares to someone? 

Here are some ways you can do it.  

1. Create the Trading Account and Buy the Stocks for the Person

If it’s your own child or grandchild under 18, it should be pretty easy to set up the trading account and just buy the shares for them. 

Grandparents might need a photocopy of the children’s ID from the parents, but once they have that, they can open a savings and investment account in their own bank and buy shares for the children. 

This is the easiest way to gift shares.

2. Buy the Shares and Transfer Them Electronically

This method is a little more complicated.

You’ll encounter a bit of bureaucracy at the banking level and some high fees, but it’s doable. 

There are options other than old-school transfer today though. There are some apps that make it easier to buy shares as a gift.

You can look up SparkGift, Stockpile, and Public. They even make it possible to buy fractional shares and give them through the apps. 

3. Open an Account and Buy the Stock Together

An alternative is doing it together. You can coach the person through the process of opening a trading account and buying a share. 

If the person is a newbie on the stock market, this is like a double gift: You offer the stock and some basic knowledge about how the stock market works.

Many newbies freeze when they see an online platform because they don’t understand the language. What’s limit? What’s market? They become afraid of doing something wrong, and some people never get past that level. 

You can get them over that hurdle by investing an hour of your time.

4. Give an Investing Course Instead

What about gifting some investing knowledge either along with the stock or instead of giving shares? 

The best investment you can make is investing in your knowledge. The master investor Warren Buffett said something to that effect (the exact quote: “Ultimately, the best investment you can make is in yourself.”).

A stock can fall in price, but knowledge never depreciates in value. After all, it’s knowledge of the stock market that makes you able to make good investment decisions.

Have you considered giving an investing course as a present?

I’m hosting a webinar about stock market investing between Christmas and New Year’s.

What about inviting your loved ones to that? It’s free and you can sign them up right here.

5. Gift the Stock Together with the Physical Product

It might be a little boring to receive an envelope with information about a stock – especially for children.

In that case, what about giving the stock in combination with the product?

Gift Nike shares with a pair of Nike shoes, Apple shares with the new iPad, or Disney shares with an Elsa (Frozen) outfit?

Tell the child, “You own the McGuffin/the gadget/the iPad/the game station, but even better than that, you now own the company that makes it.”

That’ll wake them up. Believe me. I’ve tried it. 

They’ll go, “What?”

Then you can say. “Well. Part of it.”

You’ve got their attention now. Then you give them the envelope. 

If I had bought a share or two for myself and my nieces and nephews for every item they put on their wish list, we would all be very rich by now.

Looking back, I can see now that my teenage nieces and nephew had very good antennas for wonderful investments.

If I had invested in Apple when my nephew was aching to get the first iPod on the market, I would have had a wonderful return (Apple was trading at less than 40 cents a share in 2001). Or if I had invested in Nike when the sneakers were on my niece’s wish list (around 5 USD per share then). Or if I had invested in Amazon when I gave my first Amazon gift card at Christmas in 2001 (around 10 USD per share).

No use crying over spilt milk, but we can do it differently going forward. 

Look at the items on the wish list. Do you spot any companies that are public? Could they be good investments?

How Much Can You Give? 

We usually don’t give taxes much thought when we’re wrapping Christmas and birthday presents, but when you give stocks, you have to be mindful of the tax laws in your local country.

Gifting stocks is like giving money, and the rules are different from country to country. You might incur some taxes, so look up the tax regulations. 

In the US, you can give 15,000 USD without triggering the gift tax (2021).

In the UK, everyone can get a cash or stock gift of 3,000 pounds without triggering taxes (2021). 

Before you get a headache about taxes, just remember, the stock is just part of the gift.

You’re also giving interest and experience in the stock market. 

Don’t forget to sign up for the free, life Webinar that I host on December 27 and 28th. You can sign up right here.

Five Strategies to Make This Winter the Best Thing That Happened to You

Five Strategies to Make This Winter the Best Thing That Happened to You

Last year at this time, there were no family gatherings during the holidays, no parties, no theater, no schools.

I sat alone at home with my kids on Christmas Eve and New Year’s Eve.

At one point I thought:

“I NEVER want to go through this again.”

What did I really mean by that? I wasn’t so sure myself.

We can’t control the progression of the pandemic or the government’s lockdowns (it’s clear we haven’t been able to because now it seems like it’s all happening again).

I decided that next year, my life would look completely different.

But different how?

I had to go through everything detail by detail to find out what worked and what didn’t.

It became a stone-turning project that got me through the winter.

Today – a year later – we are going to go through another round of closed schools and different types of restrictions, but my life actually looks completely different.

Last year we lived in an apartment in Copenhagen. Now we live in a house in Cascais in Portugal.

In my business, I’ve changed the workflow completely, and I’ve multiplied my turnover 10x.

I wouldn’t have made those deep changes if the second lockdown didn’t stir everything.

I can honestly say that my life has been radically changed by the lockdown last year.

To the extent that I almost welcome another round of restrictions (but not really).

But how do you turn these lockdown limitations into a force of good?

In this blog post I will give you five strategies to turn this round of restrictions into one of the best experiences of your life.

1. Accept That Suffering Is a Part of Life

Sometimes we can have childish expectations that life should be fun and easy, a long Instagram-worthy party.

With that attitude, we feel terribly disappointed during a lockdown (and yet another and yet another) because life doesn’t match our slightly spoiled (but maybe subconscious) attitude and wishes.

It helps to accept that life is a mixed bag of experiences. We all have good and bad days. We all go through times of difficulty. There will be sunshine, and there will be rain.

It’s often the difficult periods that move us to change and develop. A difficult period can actually be a great gift if you treat it as one.

When we accept that suffering is an integral part of life, it becomes much easier for us to bear it – and hear the message in it. Accepting suffering as a natural part of life is actually crucial.

2. Be Aware of Your Purpose

Why are we here? How can you contribute?

In the book Man’s Search for Meaning, psychologist Viktor Frankl describes how occasionally, prisoners in concentration camps received cigarettes as payment. The cigarettes could be exchanged for food, which could ensure another 14 days of survival.

He looked in amazement at the prisoners who chose to smoke a cigarette. He knew they had given up and would not live long.

They prioritized a moment of enjoyment over survival. They often died shortly after.

Why does someone give up? Because they can no longer see the point of living life.

Why do they lose the sense that life has a meaning while others retain a sense of purpose – even under the most extreme conditions?

Meaning in life comes from within us and depends on whether we can see the bigger picture and set our sights on a purpose bigger than ourselves.

Meaning can come from love, from a faith, or from an important piece of work to which we contribute.

There is no doubt that there will be great “meaning” to it all if you have a purpose that drives you forward.

It can carry you through difficult times.

3. Choose Your Attitude Carefully

The other day, I read a blog post about a dad’s reaction the moment it dawned on him that his newborn son had Down syndrome.

His wife had just given birth, and the baby was completely silent. The doctors were quiet. For a moment he was afraid the baby was stillborn.

When he went to look at the child, he saw the crooked eyes and knew the answer.

In a split second, he discovered that he could choose between doubt and fear… or love. He could choose to worry how they would cope, how they would pay the medical bills, how the rest of the family would react… or he could choose to indulge in a feeling of love for the child no matter what.

It’s wonderful that we always have a choice, but we forget that we can choose our attitude – even in difficult times with upsets.

You don’t have let the restrictions discourage you. (That’s probably annoying to read if you’re upset about having to work from home.)

But ask yourself if it’s not true that there is a crack where you can see some other feelings peeking through?

Leave an opening so you can find alternative reactions.

4. Build Good Daily Habits

Good daily habits can carry us through a lot.

I remember my rhythm from the first lockdown when I was at home with two small children and had to work my way through it.

In the morning we went to the bakery (that was still possible).

With two young children (they were 3 and 6 years old at the time), that’s an adventure in itself.

Back home, I put a film on so I could work a little. Then we had lunch.

Then a friend’s teenage children came by to look after the children outside for two hours. I worked a little more.

In the afternoon we had a creative project: modeling beeswax, pearler bead crafts, drawing, and so on. Then dinner.

In the evenings while they slept, I worked again.

If you don’t have children, you’ll have some other routines and habits.

Whatever habits you adopt, you need to have at least these three key elements:

  1. Light, fresh air, and exercise. A walk is enough.
  2. Social contact. This can also be a Zoom meeting or a phone call.
  3. Some work or an interest that gives you a sense of meaning.

5. Find a Project That You Care About

There’ll be a lot of things in the near future that you can’t do.

But there is still a lot that you can do.

It’s mostly life outside that is affected. There’s no limit to what you can learn and create in your home.

I would suggest you find a project that you really care about.

What exactly it is doesn’t matter so much.

You may want to learn Italian online.

You may want to read all of Shakespeare’s works.

You may want to learn to knit.

Or it may be that you want to learn to invest.

Of course, I suggest the latter, because my purpose that drives me is to teach people to invest in stocks in a way that allows you to become financially independent.

If investing is the project you choose, I have good news for you.

I’m going to be launching my beta version of my value investing course in English in early January. Let me know if it’s something you are interested in. You can just shoot me an email and tell me.

Don’t forget to download my e-book Free Yourself where you’ll learn to invest as one of the best – super charge yourself through the plateaus. You can download it here.

How to Create Extreme Wealth

How to Create Extreme Wealth

Recently, I had a revelation.

It happened when I overheard the motivational speaker Bob Proctor talk about the three money types.

He divides people into M1, M2 and M3.

He talks about those who make money by giving their time to get money, i.e., those with a paid job.

Those are M1.

Around 96 percent of the population fall into that category. It’s all the people who go to work to get a salary.

It’s the nurse, but it’s also the doctor, the lawyer, and the CEO.

Then he talks about those who have understood the principle of creating assets and who have invested in something. He calls them M2.

If you have started investing in stocks, you fall into M2, and congratulations – you’re part of an exclusive crowd of people who only make up 3 percent of the population, according to Bob Proctor.

But he goes a step further to a group that I hadn’t heard of before. The M3s are the true elite on the money front.

Who are they?

They’re the ones who set up many sources of income. They aren’t content with a salary from a job and stocks and shares.

We all know these types. I have a friend who has a normal, but well-paid job. That doesn’t stop her from starting a business, selling online courses, writing books, say yes to speaking at conferences. She rents out a property. And of course, she also has a few million in stocks and shares.

Do you know someone like that?

It’s like they’re running a program called “Where Else Can I Make Money?”

It dawned on me that I’ve been an advocate of the M2, when in fact I’m driving the small version of the M3 myself – without being aware of it.

Occasionally I get asked why I sell online courses and group coaching when I am financially independent from stock market investments.

I’ve brushed the question off with the thought that I’m doing it because it’s fun and because I want to share my knowledge and help people become financially independent.

Now I can see what I’ve done. I’ve set up several sources of income.

Now that I know that there is such a thing as M3 money types, I think it’s the way forward.

The idea of ​​M3 has shifted my perspectives and boundaries in a way where I can feel that my business and my life are about to accelerate.

I plan to develop as an M3 money type, and I also recommend that you do that.

“But how?” you may ask.

To be honest, you’re not going to jump directly from M1 to M3 by snapping your fingers.

You’ll probably go from M1 to M2 and slowly on to the M3, step by step.

If you are an M1 right now, the logical next step is to buy shares so that you can become an M2.

Becoming an M2 is a huge step and a clear improvement. It’s still my opinion that stocks are the best way to create a passive income. They’re superior to almost any other passive income.

How do you find sources of income other than stocks?

1. Expand Within Your Current Field

First, you need to see if you can come up with new sources of income within your current profession.

I’ll use my own former career as an example. As a journalist, I could have taken on chairing a conference or maybe freelance writing in my free time. If I had written a book, it would have created a passive income, increased my value on the market as I positioned myself as an expert, and it would have most likely also led to other gigs, such as speaking.

2. Brainstorm New Fields

Are there other areas where you can make money?

Sit down and brainstorm and draw a mind map.

What are your special talents? Where are your interests? Do you have any old dreams? What do you love to do? Could there be something there?

There is probably something simple you can do right away without a big business plan.

For example, if you love cars, could there be a hobby and source of income in buying old cars, repairing them, and selling them at a profit?

If you like writing, can you start blogging about an area you love?

If you have a following on one of the social media platforms, could you start monetizing it?

Is there anything you can rent out for a period of time? Your summer home maybe?

For each idea you write down, turn it into a mind map, i.e., you circle the main idea, and then draw lines out to other circles where you write multiple sources of income.

In the beginning, your M3 projects might be small hobby-size projects, but over time you might get a real business idea that can grow into something bigger.

My blog Money and Freedom began just like that.

3. Calculate the Profitability of Your Time

When you get these new ideas on how to make money, evaluate how much time goes into it.

Some ideas are better money machines than others.

For example, if you love knitting and consider selling hand-knit socks at a Christmas market, you have to consider the hourly rate.

Let’s say you can sell them for 15 dollars and they take 15 hours to knit. That amounts to an hourly rate of less than 1 dollar when the yarn is deducted – not a particularly good use of your time. It’s not the socks that will lead to “extreme” prosperity.

4. Sort Your Ideas Into Passive and Active Streams

You also need to divide your ideas into active and passive income.

Active income is when you have to constantly supply your labor, while passive income is something you set up once which can be sold over and over again.

To use the knitting example, the knitted socks is an active income stream because you have to spend time knitting before you can sell a pair of socks.

But if you create an online knitting course, it’s considered passive income because you only have to set it up once and then you can sell the same course over and over again.

It’s important that you set up passive sources of income. These are the ones you need to prioritize.

Your First Step

An obvious place to start would be to buy stocks in public companies if you have not yet started investing.

After all, jumping from a pure M1 to an M2 means that you are moving from 96 percent of the population to the exclusive club of the 3 percenters.

When you get other sources of income set up, it’s important that you do not use all the money on consumption.

Let all (or most of) your new income stream be reinvested in new money machines. Those money machines could obviously be stocks and shares.

A great place to start learning about stocks is by reading my e-book Free Yourself. You can download it here.