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Financial wellbeing can't be measured by only focusing on how much you earn. The gap between what you earn and what you spend is an important figure.
Household savings fell by 30% during a period when median real income rose 40%. Even though Americans earn more than ever before, they have been offset with higher spending.
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It is tempting to spend more when your income rises. But savings rely on the ability to receive an extra dollar and say: "I can spend this money, but I'm not going to."
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469 reads
Earning more will do little for building wealth if every extra dollar is offset by a dollar of new spending.
Wealth has less to do with your gains and more to do with your ability to leave gains alone without cashing them in.
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391
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