Do You Need Big Income To Be Truly Wealthy?

Do You Need Big Income To Be Truly Wealthy?
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4dd06d33adce97072b34f4ef2407bc81_1390101318_croppedDo you really need big income to be truly wealthy? People think that to be true wealthy or rich one need to get large income. That’s what everyone of us keep thinking. 

After all, earning a large income doesn’t necessarily convert into a high net worth at the end of the day. Income does not equal wealth. Moreover, true wealth is built over time by taking clever, active steps.

Having lots of money is all very well. However, it’s not what you earn, but what you do with it in the long run, which will make all the difference to your life.

You could earn $100 000 per month, but if you aren’t saving and investing any of this money, you’ll
never build real wealth. Being truly wealthy means that:

  • You have specific, financial goals that you’re working towards;
  • You use a budget to plan your finances;
  • You are not over-indebted;
  •  You don’t have bank loan;
  • You consistently save;
  • You have investments as assets;
  • you have an emergency fund;
  • You’ve created passive sources of
    income;
  • and you are determined to achieve
    financial freedom

If you want to be truly wealthy, you must ensure that you constantly utilize your money effectively and efficiently.Earning big income will not make you wealthy.

What’s your net worth?

Your net worth is simply the difference between what you own (i.e. your assets) and what you owe
(i.e. your debts/liabilities). Unfortunately, in many instances, the debts/liabilities side of the equation far outweighs the assets. This is why so many people are struggling to convert their income into a high net worth and build true wealth. It’s too easy to get trapped in the debt cycle. You keep thinking that you will start building wealth once you’re earning more.

The problem is that increased income often leads to increased expenses. So, before you know it, you’re in the same position that you were in before – and you’re chasing after yet another increase in the hope that it will help. If you want to build a high net worth, and be truly wealthy, then you need to start taking active steps today.

How to get started

It’s a good idea to start by assessing your situation. Consider the following questions:

  • How much do you currently earn?
  • How much have you saved and
    invested to date?
  • What are you putting into savings and investments each month?
  • Do you have any assets?
  • What amount of money is going
    into expenses each month?
  • How indebted are you?
  • What is your current net worth?

Assessing your situation will help you to take a step back and get an accurate view of the current state of your finances. Once you’ve answered all these questions honestly for yourself, you will be in a much better position to start building true wealth, not to wait until you get big income.

An investment strategy

It doesn’t matter whether you have a small or big income. Everyone can – and should – save. Your attitude towards saving and investing is the most important aspect here. If you are disciplined and dedicated, you will make excellent progress. It’s time to stop making excuses and to take control of your finances. If you don’t, you could easily spend your entire life working just to keep your creditors happy. While, getting big income won’t make you truly wealth without saving & investment.

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