Why Aren’t you Wealthy?

Have you ever think that, Why aren’t you Wealthy? Well, first of all let us understand that, What it means by Wealthy? Suppose if your Net Worth is $ 1 Million than are you Wealthy? Well, Technically speaking, you are millionaire but it doesn’t mean that you are wealthy.

If you are a Millionaire and your annual expense is $ 400,000 than you are not Wealthy. Actually Wealth is considered in terms of TIME. Means how many days, months or years you can survive on your current assets if you stop working today is your wealth.

If your Net worth is $ 1 Million and your annual expense is $ 30,000 than you are wealthy. Because if suppose today you stop working than you can live for the rest of your life on $ 1 Million net worth.

Now, let us discuss that why you are not wealthy. Let us examine your lifestyle. How much you spend every year behind your life style? Most of the High Income producer people spend lots of money (sometimes more than they earn by borrowing more) behind their high status life style and thus they fail to accumulate wealth.

If someone is high income earner than it is not necessary that he is wealthy. Most of the high income group people such as Doctors, lawyers, IT Professionals & Actors earn lots of money but they still struggle financially. Because they spend all of the money they earn.

The foundation stone of Wealth accumulation is Discipline, Budgeting, Financial Planning & Investing.

If you don’t have these skills, no matter how much you earn, you will fail to accumulate some serious wealth and struggle financially even though you are high income producer. Wealth is something which has to be accumulated. You can not become wealthy by spending more. You can only become wealthy by accumulating more Assets.

So if you want to become wealthy than first of all learn the basic skills of money management like Budgeting, accounting & Investing and than start accumulating assets out of your Money… Over the time, you will definitely become a wealthy…!!!