Wealth is what you accumulate ,not what you spend.If you make $1 million a year and spend $1 million,you're not getting wealthier,you're just living high. The most successful accumulators of wealth spend less than they can afford on houses,cars,vacations and entertainment.Why? Because these things offer little or no return.The wealthy would rather put their money into investments or their businesses.It's an attitude. Millionaires understand that when you buy an expensive house,you buy an expensive life-style too.Your property taxes ,insurance,and the prices of nearby services tend to be higher. The rich man's attitude can also be seen in his car.many drive old cars.Sam Walton,billionaire founder of the Wal-Mart Store,Inc,drove a pickup truck. Most millionaires measure success by net worth ,not income.Instead of taking their money home,they put as much as they can into their businesses.Why? Because the government doesn't tax wealth;it taxes income you bring home for consumption . The person who piles up net worth fastest tends to put every dollar he can into investments,not consumption. The best wealth-builders pay careful attention to their money and seek professional advice. The self-made rich develop clear goals for their money.They may wish to retire early,or they may want to leave something to their children.The goals vary,but two things are consistent:they have a goal in mind-- the amount they want to save by age50,perhaps--and they work unceasingly toward that goal. One thing may surprise you.If you make wealth---not just income--your goal,the expensive house you've been dreaming about won't seem so attractive.you'll have the attitude. Which of the following statements is true?
Wealth is judged according to the life style one has. Inheritance builds an important part in one's wealth. Wealth is more of what one has made than anything else. High income may make one live high and get rich at the same time.