It describes being "rich" as a function of how much money you earn, while "wealthy" refers to having freedom to do what you want with your time. Unfortunately, too many "rich" people use their income as a way of validating who they are as people.

To be truly wealthy is to have money that lasts forever. This may be a blunt statement, but suddenly coming across a large sum of money does not necessarily mean you have become a wealthy person.

To be wealthy is a state of mind. A person with a wealthy mindset may not necessarily be financially rich just yet but will be soon enough. On the other hand, a rich person without a wealthy mindset will squander the money very quickly.

This could not be more true than those who win the lottery. After a few years, these lottery winners no longer possess the millions they came across so suddenly. An amount of money that should have lasted for at least a generation has been fleeted away.

Case in point is UK lottery winner Michael Carroll who won £10 million in 2002 at the age of 19. It is reported that he had lost all his winnings 18 months later on things such as holiday homes, luxury cars, drugs, parties, jewellery and famously, a rural mansion used none other than as a dodgem car racetrack for his new friends.

What is even sadder are cases of other lottery winners that end up with greater financial debt after their windfalls dry up than they had to begin. Some have even declared bankruptcy to be back where they had started - with nothing.

From this, it is fair to say that being rich does not necessarily mean you are wealthy. A truly wealthy person would still possess the majority of the millions of dollars (if not more) because a wealthy person understands the fundamentals of how to manage their money.

It can even be said that a wealthy person has a good relationship with money. Money sticks with them rather than repel away from them. It is through this understanding of how to manage money that dictates how long you will remain rich, or how soon you will become rich.

A wealthy person knows to save their money. With the money that is saved, they firstly spend on things that earn them an income such as quality businesses, real estate and shares. In other words, the money a wealthy person retains is used to further create more money. The money they earn from their investments is then used to fund a rich lifestyle.

On the contrary, for a (temporarily) rich person that does not have a wealthy mindset, they would have chosen to firstly spend on material things and eventually have no money left.

However, nobody is born with a wealthy mindset and it certainly cannot be won. Importantly, a wealthy mindset is learnt. If Michael Carroll had a wealthy mindset when he won the lottery, he would likely still be living very nicely with most of his winnings intact.

If a wealthy individual were to lose all their money today, it is likely that within a number of years, they would be back to a relatively comfortable financial position.

Individuals such as Donald Trump, Martha Stewart and Sir Richard Branson have faced financial setbacks in their lives but were able to rebuild their financial positions because each has a wealthy mindset. These individuals firstly focussed on redeveloping their businesses rather than wasting their remaining fortunes on frivolous items and lifestyle decisions. Today, they enjoy life's luxuries because of their wealthy mindset.

Contrast that with people who concentrate on accumulating wealth. These people are focused not on how others view them, but on what their money can provide them via peace of mind and security. Their goal is to save, invest and accumulate wealth not to impress anyone, but to achieve financial independence so they can enjoy the benefits of accumulating wealth, which can include a stress-free retirement, the ability to be philanthropic, the ability to take care of family or the ability to travel and create experiences. They understand that material things are fleeting and that their "stuff" has no lasting value.Michael Carroll clearly demonstrates that being rich does not always mean you are wealthy. On the other hand, having a wealthy mindset certainly gives you a greater chance at being rich because you understand how to manage and appreciate money.

Each of us can learn to be wealthy. By developing this wealthy mindset, you will ultimately attract more money to you than repel it. Only then can you be rich and truly wealthy.

People who are actually "wealthy" have bought into the keys of true wealth accumulation. These keys include:

1. Living within your means.

2. Even better, living below your means.

3. Staying away from debt (other than a mortgage, but even there, buying below what you can afford).

4. Saving aggressively.

5. Creating a "bucket plan" approach to your savings. This means you split your money into three buckets signifying different time periods of when you might need the money.

We live in a consumer-driven economy. We are constantly being told that more, bigger, better is the path toward happiness. Amazon and online shopping make it easier to get that jolt of endorphins when we push the "Purchase" button. But all of this makes it harder to avoid the siren song of own it, buy it, drive it, so everyone around you will know you have "made it."

Know this: You need to play good offense and good defense to win games. The same is true with money. You have to earn enough so that you can save and accumulate. Then when you are fortunate enough to cover your expenses, you need to focus on saving and accumulating. This is what will make you both rich and, more importantly, wealthy.