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Mar 18

Does a high income make you rich?

Simply put, no.  Obviously, not.

A huge income can lead to an amazing life for a time.  Obviously we can spend more than we make if we so decide to or spend without thinking about cashflow - present and future.  One must consider their money coming in and money going out for now and what they expect for the future.

Most people that spend beyond their means that aren't making tons of money often think if only they made more money, this video can also be warning for those people.

So how can one become rich?  What is the key to becoming rich?  Compounding.  Yes, compounding, it either will work for you or against you.  For most compounding is working against them.  Think of interest on credit cards and how many people are paying interest and their debt is rising...