The Most Authentic Guide on Personal Finance and Investments

Words of Wisdom : "The best way to teach your kids about taxes is by eating 30% of their ice cream." ~ Bill Murray

Your Income is NOT your Wealth (Part 2 of 3)

Continuing the article 'Your Income is NOT your Wealth (Part 1 of 3)'...

In income-scenario you are the CONTROLLED. The controller is your employer who hires you; or the public that comes to watch you play; or the people who buy tickets to watch your movies; or the connoisseur who buys your art. All these i.e. the employers, the public and the connoisseurs can anytime change their mind and your income flow stops.

Thus, someone else is controlling your financial well-being.

In wealth-scenario, you are the CONTROLLER. It all depends on you, as to how you take care of your money. If you manage your wealth properly, you can enjoy its benefits for a long time to come. But you can be in trouble, if you waste your wealth.

Herein, you are the master of your financial destiny.

d)  MAKE vs. KEEP
Income may “make” you rich, but it may not “keep” you rich.

There have many instances of people earning huge incomes and yet ending up poor. They never really understood or fully appreciated the concept of wealth. They lived a lavish lifestyle, but only till the income was good.

Wealth, however, has the potential to keep you (and even your future generations) rich.

Bill Gates or Warren Buffett would have no problem if they decide to just sit at home and do nothing. Not only they, but even their generations to come can comfortably live on the assets they have created. These are, of course, examples of world’s richest persons. But there are many ordinary families too, who have sufficient wealth to last at least their lifetime. They don’t have to depend on their earnings to live.

(Excerpt from 'Millionaires don't eat cakes...don't make them')

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