If it’s asked..!!!
Who is Richer..??? Is that Ramesh whose monthly income is Rs. 1,00,000 or Suresh who earns Rs. 50,000 per month..???
With the common understanding most of us might say Ramesh..!!! Since he earns Rs. 50,000 more in a month than what Suresh earns. But it’s not fair to give any judgment, though we do not know how much their monthly expenses/commitments are.
Say for e.g. Suresh spends only Rs. 30,000 in a month, Ramesh ends up spending Rs. 80,000 per month and left with Rs. 20,000 of his monthly income where at the same time Suresh manages save Rs. 20,000 in a month i.e. equals to what Ramesh saves.
So what we can extract from here is, eventually saving matters not earning. It is not true always that more income helps saving more at the end. Wealth can be created by saving diligently and regularly not by earning only. If it is not so then there is no difference between the 2 people where one earns high and spends a lot, on the other hand the 2nd one earns less and saves less. This way the future wealth creation will be a difficult task or may become an impossible task.
Many a time it has been observed who have big incomes are not good at savings or do not find time to look after their savings. Unknowingly they miss to give attention to their savings as plenty of incomes overshadow the spending.
Creating wealth in long run is the eventual result of how much you are saving now. Since Ramesh and Suresh saves equal amount of money in a month, thus there is no doubt the final wealth will be same for both of them. And it justifies the subject “You are Rich, it’s Not Because You Earn High”, so the point here is “How Much You Save”.
Please note just for saving high you should not compromise your current living standard. Try to figure out what are the areas where the expenses can be controlled. Have a Cash-Flow statement to monitor your incomes and expenditures. There might be some outflow from your income towards existing investments, consider that as your savings.
Few Success Tips for Savings..!!!
- START LIVING WITH JUST 90% OF YOUR SALARY.
- TEACH YOUR SPOUSE AND KID ABOUT MONEY.
- UNDERSTAND THE CONCEPT OF TIME VALUE OF MONEY.
- SLOW AND STEADY WINS THE RACE.
Happy Saving 🙂