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The difference between income and wealth

https://www.getrichslowly.org/income-vs-wealth/

getrichslowly.org

The difference between income and wealth
I'm generally a pretty laid-back guy but, like anyone, I do have pet peeves. Because I write about money, I have lots of trivial personal-finance pet peeves. (It's 'saving rate', not 'savings rate'. Dave Ramsey did not invent the debt snowball, and his version is but one kind of debt snowball.

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Income and wealth are related, but it's a complicated relationship

Income and wealth are related, but it's a complicated relationship
A high income can lead to great wealth — although it doesn't always — but they're not the same thing. Earning money is only part of the equation. What you do with the money you earn has a profound impact on your wealth. 

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The Difference Between Income and Wealth

The Difference Between Income and Wealth
  • Income is earning money. Yes, it's the primary piece of wealth creation, but income itself is not wealth.
  • Wealth is having money. If you have a lot of money, you are rich. If you don't have much money, you're poor.

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Characteristics Of The Wealthy

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Rich And Wealthy

By making wealth your priority now, you could be both later. Establish a strong financial foundation that will give you financial security and peace of mind moving forward. 

Living paycheck to paycheck is a guaranteed way not to build wealth.

If you’re just starting on your personal finance journey, it might not be time for you to start acquiring these assets yet.

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Wealth Is A Relative Term

Wealth Is A Relative Term

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How Much You Need to Become Wealthy In Dollars

According to a Modern Wealth Index Survey, the amount needed to be comfortable in America is $1.4 million. To be wealthy, you'll need a net worth of $2.4 million.

An average pre-tax yearly salary of $389,436 is needed to be in the top 1%, although it varies by state.

Buying Time

We all, rich or poor, have the same 24 hours in a day. But we can use our money to buy more time. For example, by eating out, you don't have to decide what to cook, shop for ingredients, cook, and clean it all up.

If you can carve out more time for yourself, you can use it in other ways that will improve your life. You can start a side hustle, exercise, read, or spend time with family and friends.

Smart retirement planning boils down to a few simple truths.

  • Time is on your side.  The earlier you start saving money, the more time you give compounding to work for you. 
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