Wealth is how much a person has in terms of cash, savings and essentially all assets. However, many people use the word wealth in a misconstrued manner. According to the Merriam-Webster online dictionary, people commonly mistake the word income for wealth. There is an example used where a man makes a lot of money each year and people consider him wealthy. However, after he pays all of his bills and expenses each month, he doesn’t even have enough money to save. The man has a high income but after he pays his bills and expenses he is not wealthy. He has run out of money for the month and must work to earn more.
This story reminded me of myself and a situation I am trying to get out of. My husband and I take home more income than the average person. Student loan payments and bills make it hard to save extra money. Things needed to change and fast as student loan interest was building each passing day! We now budget every penny and try to live as frugally as possible. You can follow our debt free journey on Instagram. We would love your support!