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What Does It Means To Be Wealthy?
As I sat in my room this morning contemplating on what article to submit today, a question just popped up on my mind. What does it means to be broke? What does it means to be wealthy? What does it mean to have a financial freedom? Is there anything called money fear? Have done Justice to the first question on my first post today. As a society, we tend to measure financial success based on spending patterns,but our metrics are faulty.However, building wealth is more about how much you keep.
You Know, broke people and rich people approach the same amount of money differently and here is why; Broke people think it is about how much you earn but rich people know it's about how much of your income you are able to keep and convert into assets that can provide you with an income in the future. The fundamental difference is that wealthy people understand the relationship between how we earn and how we spend and they know where the balance is. Active income is the income you get from services rendered, it is usually your income from your job or business. Passive income in a lay man term is the money that you make while you are sleeping.It is the income you get regularly from investments you've already made.
So what is now financial freedom? It is when passive income exceeds your expenses. Ideally, the goal is to get to a point where the assests you've accumulated can pay you enough of an income to pay for your lifestyle. I hope you have gain something from this article. thanks.
15 comments
It's not quite true. Wealthy people do not know the price of a bread, they do not care, they spend. Many of them get broke because of name/fame they can live on, sell property or themselves. Broke people are not per we poor people. They can be everything but what they do have in common is they do not have priorities if it comes to what to pay first or saving. They live by the day. Most people will never earn enough to invest and live from the interest. Might be you can in some countries but not where I live. I doubt it would benefit me. Taxes or the government will take it away. 💕
Hmmmmm.but I think behind the spendings of a wealthy man lies a backup plans. Your points are true but I saw that you were trying to shed more light on a RICH MAN. A wealthy man is like a table with all four stands, even if one of the stands is faulty they still have 3stands which is their investment. Been broke doesn't mean you are poor, please read my post on BROKE.what am saying is let's start investing.invest in your skill and others Concerning your third paragraph, I will say NO. Investment doesn't Start immediately, it's a gradual process. Do you Know how many shares a wealthy man will buy before he can have four stands. That's where saving comes in. From a penny you save on a daily basis comes a lifetime huge money.Although it's not easy but the moment you start saving you will invest. Investment? Investment might not be that big business. From a small shop comes out a big supermarket, you know
Unless he is born that way and has some funds or an organization. Many suddenly rich people are broke within one year.. 👍💕
Rich people you say. There is difference between been WEALTHY and been RICH. Are we on the same page on this statement?
Really a wonderful article. I have gained alot. Allowing your expenses to exceed your income is not a wise move
That's true. thanks
Financial freedom sounds amazing. I’m dreaming of a world we’re everyone has achieved financial freedom already.
Same here...I hope it comes to pass
Yes. The major difference between the rich and the poor is that the former generates wealth through more income while the latter spends what he has.... No investment. Thank you.
Infact thank you.we are on the same page
Very good post... It's not always about how much we spend that makes us wealthy.
Thanks dude
The only thing that i take from your write up is the need to have investment, otherwise comparing the rich with the poor is not s good judgement at all. Again being wealthy is not about having much money in the bank but about what that money can do to better the lives of people in our society. We need a paradigm shift in the way we view wealth and riches otherwise the so called wealthy will continue Lord it over the weak and venerable in our society
Hmmmmm.ok.thanks for your contribution
In my view Health is first than Wealth. If i will not be healthy then how can i become wealthy or enjoy my money.