Income and wealth have become almost interchangeable in our culture, but they're not the same. Income is the measure of your compensation. It's how much money you get paid to work. Wealth, on the other hand, is far more complex. Wealth is the sum of the values of all assets owned by an individual—his home, his cars (less depreciation), stocks, bonds, just about anything that can be sold is an asset. Wealth is certainly influenced by income—a higher income may make it easier to save, and thus, easier to become wealthy—but it is not directly linked to income. Further, a high income does not guarantee wealth. If you don't believe me, Google
Income vs. Wealth
Income vs. Wealth
Income vs. Wealth
Income and wealth have become almost interchangeable in our culture, but they're not the same. Income is the measure of your compensation. It's how much money you get paid to work. Wealth, on the other hand, is far more complex. Wealth is the sum of the values of all assets owned by an individual—his home, his cars (less depreciation), stocks, bonds, just about anything that can be sold is an asset. Wealth is certainly influenced by income—a higher income may make it easier to save, and thus, easier to become wealthy—but it is not directly linked to income. Further, a high income does not guarantee wealth. If you don't believe me, Google
Comments on this post are for paid subscribers