Wealth is measured by the number of months you are away from poverty.
You can earn 100k a month, but if you spend 100k every month and have no savings, you are very close to poverty.
Discussion
i know some people with very low incomes who are wealthier than 7 figure earners. don’t be fooled by the numbers. it’s all a habit at the end of the day.
Very good point I agree
Great point. Personal finance and business finance are truly no different in terms of basic cashflow. Your savings rate is your profit. A business with 0% or worse profit is a failing business. Likewise an individual or family unit with 0% savings is failing.
Too many people believe 0% savings is "making it". We gotta change the frame.