There is an infinite number of ways that someone can budget money, and all of them come down to the priorities of the individual.
Someone who makes less money could have more wealth than someone who makes more money. I, as a 21-year old, could have more wealth than a 50-year old. It all depends on where my money goes after I get my paycheck; whether I put it into a savings account, or go down to the mall and buy a few new pairs of shoes.
One thing that everyone should agree with about wealthy people is that they know how to save money. If someone who works at the mean salary in American, around $50,000, puts at least a quarter of their check into a savings account for thirty years, they will have saved nearly $400,000, which is the top one percent in this country, according to Bankrate.
On the other hand, people who earn $200,000 a year could have little to no wealth if they do not know how to budget. This is the beautiful thing about wealth and income: they don’t necessarily have to be mutually exclusive. That is because while wealth is how many assets you have amassed totally, from funds, to a home, to any other properties, income is the amount that you earn.
Here’s the lesson in all of this: SAVE!
By Lindsey Allen