deepstash

Beta

Get an account to save ideas & make your own & organize them how you wish.

STASHES TO GET YOU STARTED

© Brainstash, Inc

deepstash

Beta

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.

100 SAVES


This is a professional note extracted from an online article.

Read more efficiently

Save what inspires you

Remember anything

IDEA EXTRACTED FROM:

The difference between income and wealth

The difference between income and wealth

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

getrichslowly.org

2

Key Ideas

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.

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. 

SIMILAR ARTICLES & IDEAS:

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. 
  • Take risks when you're young.  Althoug...

Education and wealth

College degrees can add significant wealth. The more education you have, the more you’ll earn and the less likely you are to be unemployed. And if you can keep debt low while getting th...

Controlling expenses and wealth

Those who control their spending do much better. This doesn’t mean you have to save on EVERYTHING, just some things. Enjoy your life by spending on what you want here and there, just keep it in line so you have excess to save and invest. Even 10% will make you wealthy over time.

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacte...

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacted by the amount invested.

Characteristics Of The Wealthy

  • They live in homes just large enough for their needs and drive used cars.
  • They have affordable interests.
  • They don’t worry about having the highest credit scor...

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.

How To Become Wealthy

  • Investing in stocks is simple if you avoid lucky stock picking. Keeping long-term perspective, invest early, especially in low-cost index funds.
  • Rental properties.
  • Small business ownership.
  • Delaying gratifications.

4 more ideas