Why So Many High Income Earners Have No Wealth?

Why So Many High Income Earners Have No Wealth

Making a lot of money and keeping and growing a lot of money, those are really 2 separate skills. I know people who have the skills to make a lot of money, but they don’t have the skills to manage it.

They have the skills to make a lot of money, but they don’t have the skills to keep it.

I know people that make a lot of money, but they don’t have the skills to invest and grow their money.

Guys, don’t confuse income with wealth. Income does not equal wealth. Just like a lot of you out there, I know a lot of high earners that make a lot of money, but a lot of them don’t have a high net worth.

HIGH INCOME DOESN’T EQUAL WEALTH

We would think that if you make a lot of money, you have a high net worth. Not true.

Income does not equal wealth. And just because you make a lot of money, it doesn’t mean that you have a lot of money. Which also means, guys, just because you don’t make a lot of money doesn’t mean that you have to be broke.

Broke or not broke has a lot less to do with income than you think it does. Just like wealth or no wealth also has less to do with income than you may think. This is why, guys, I’m so baffled that people talk more about getting money than actually managing money.

Just imagine, guys, think about it. What if we spent the same time managing money and managing our behaviors with money that we spend trying to make more money?

I think that if we spent the same amount of time managing our money that we spent trying to make more money, we’d actually have more money because the management of money is just that important.

IT’S NOT ABOUT WHAT YOU EARN, IT’S ABOUT WHAT YOU DECIDE TO BURN

I believe, guys, that it’s really not as important as we think about the amount of money that we actually earn.

I don’t think it’s all about what you earn.

I think it’s really about what you decide to burn. That’s what I think is the bigger deal. But we pay so much attention in our society and our culture thinking about earning more, earning more, earning more, when we fail to think about or address how can we stop burning more and burning more.

Listen, what we earn is important, but I’m telling you, stop focusing so much on what you’re earning and start focusing on and answering the question: what am I actually burning in terms of money?

The money you burn through your expenses as a high income earner or somebody that earns a lot of money is really about what’s destroying your ability to actually build wealth.

So what you burn through is vital, it’s key, but most of our attention goes on how much income we make, how can we make more money, how can we earn more money, and very little attention or less attention than we should be putting is going towards how are we burning our money, what are we burning through in terms of expenses, how are we spending all of our money?

That’s the key, that’s the kicker because it’s the money that you burn through that really is limiting your ability to invest more money.

The money that you burn through is limiting your ability to have more money.

The money that you burn through is limiting your ability to actually build wealth.

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QUESTIONS EVERY ASK INCOME EARNER MUST ASK THEMSELVES

So the question for the high income earner or the person that makes a lot of money is this: are you living well below your means? Are you living comfortably on less?

Are you able to stomach the idea of spending a little less money and being a little more frugal with your money? That way you can begin to actually grow some real wealth and start ultimately having more money.

You don’t want to be a high income earner and say to yourself,

“Why am I living paycheck to paycheck? Why can’t I pay these bills?”

You’ve got to start asking yourself some serious questions when you’re a high earner and you’re feeling the pinch of living paycheck to paycheck and feeling like you don’t have the money that you’re supposed to have.

A lot of times, that’s about behavior and not necessarily about income.

The other question you have to ask yourself as a high income earner is: are you increasing your expenses every time you make more money?

Are you increasing your expenses every time your salary goes up or you get that bonus? And automatically, you make more money and so you spend more money, right?

You make more money and the amount of money that you actually spend, it increases at the same rate that your income increases.

The key is this: as you make more money, spend the same or less.

As you make more money, spend the same or less. Guess what happens?

Now you start having a big cushion of money that you can build some real wealth with, that you can invest and have more money ultimately in the end. Right? We all have to get to this point, guys, where we stop confusing income with wealth.

Those are 2 totally separate things. High income doesn’t equal wealth.

THE SKILLS MANY HIGH INCOME EARNERS DON’T HAVE

Making a lot of money and keeping and growing a lot of money are 2 separate things. Those are really 2 separate skills.

I know people who have the skills to make a lot of money, but they don’t have the skills to manage it.

They have the skills to make a lot of money, but they don’t have the skills to keep it. I know people that make a lot of money, but they don’t have the skills to invest and grow their money.

They only got the skill to make a lot of money. 2 separate skill sets.

WHY INCOME DOESN’T DETERMINE YOUR WEALTH OR YOUR POVERTY

Now think about what I said earlier.

If your income doesn’t necessarily determine your wealth, then that means your income doesn’t necessarily determine your poverty.

See, I know people who don’t have a lot of money, never made a whole lot of money in their lifetime, but they always seem to have money, right?

We all know someone or have read about someone who worked as a janitor somewhere and left a whole bunch of money in an endowment or left a whole bunch of money to a college or to some charity.

They just built up a lot of money over the years and were really, really good with their money even though they didn’t make a lot of money, right?

Most of us know a little old lady, maybe a grandmother or an aunt or someone who probably never made over $30,000 a year in their life, but they somehow always seem to be loaning out money to other people or have money to give or to help other causes, or they always seem to always have money for some reason although they never made a whole bunch of money ever.

Well, that’s because, again, guys, your income doesn’t necessarily have to determine whether or not you’re broke or whether or not you live in poverty.

WHAT WE ARE TAUGHT ABOUT INCOME?

Listen, we’re all taught to spend money, right? We’re taught to be consumers. We’re great consumers. And we’re all taught how to make money, right? We all spend many, many years, decades in school learning skills that are going to help us make more money.

So we’re taught to consume, and we’re taught to make money. But very few of us are really taught how to actually manage money. And it’s the management of money that really, ultimately for most of us, determines our wealth.

Listen, if you learn to manage money very, very well, manage your behaviors with money very, very well, you don’t have to make 6 figures to be wealthy.

You don’t have to make 6 figures to live comfortably. But listen, we always confuse high income with wealth or high income with high net worth.

Again, making money and having money, 2 separate things.

What you earn has very little to do with what you actually have. Guys, on this blog post, I just wanted to share my thoughts on the fact that we need to stop confusing income with wealth.

Hey, if you got anything at all out of this blog post, do me a favor, please share this blog post with your network of friends, family, and wonderful good people.

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