There are shelves full of books about the keys to financial success. How do the truly rich (not those who are simply monetarily wealthy) become truly rich? As I have evaluated the situations of those around me, I have made a few observations that may be helpful.

My first observation is that the truly rich have their priorities in order. Their first priority is having hope in Christ. They follow the counsel of the prophet Jacob when he said:

But before ye seek for riches, seek ye for the kingdom of God. And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good—to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted. (Jacob 2:18–19)

The truly rich first establish their hope in Christ, and then they seek the wealth of this world, if that wealth is important to them. The truly rich also seek this wealth for the right reasons—not to build themselves up or for prideful purposes—but to bless the lives of their families, their friends, and others. The truly rich have their priorities in order.

My second observation is that the truly rich understand the difference between income and wealth. Income is the money they earn, and wealth is the money they keep after expenses, taxes, and inflation. They pay the Lord first and themselves second, and then they invest their money wisely. They quickly convert their earned income into passive and portfolio income. They do not spend more than they have—they live within their income and their budget. I have noted that living within your income is not dependent on salary; living within your income is dependent on your attitudes toward money and the gospel. The truly rich pay with cash when possible, and they earn interest instead of paying it.

Finally, the truly rich live like millionaires; in other words, they practice discipline and frugality in their financial affairs. Frugality sets the stage for personal financial success. Frugality helps you spend less on the purchases you do not care about and more on the purchases you do care about. It helps you stretch your money, because if you are frugal, you use your money only for your personal goals and objectives. Frugality helps you say “no” to current desires in order to say “yes” to more important future goals. It helps you realize that money and the things money buys cannot bring happiness. Frugality sets the stage for personal financial success and self-reliance.