If someone is earning a lot of money, it doesn't necessarily mean that person is rich.
The person's expenses determine whether she/he is rich or not.
Here's something I feel that might be close to reality when determining whether a person is rich:
Let's begin with a question: How much of your total monthly in-hand income do you save currently? What's the %?
You can use this data to find out if you are rich or not. You can find the class/category you fall in.
Basically, you fall into:
New Year's a day after, so, we can think of something that we would like to implement in our life from day 1 of the year to become more financially strong.
The person's expenses determine whether she/he is rich or not.
Here's something I feel that might be close to reality when determining whether a person is rich:
Let's begin with a question: How much of your total monthly in-hand income do you save currently? What's the %?
You can use this data to find out if you are rich or not. You can find the class/category you fall in.
Basically, you fall into:
- Lower Middle Class: If your total monthly expenses are 80% - 90% of your total monthly in-hand income
- Upper Middle Class: If your total monthly expenses are 40% - 50% of your total monthly in-hand income
- Rich: If your total monthly expenses are <= 10% of your total monthly in-hand income
New Year's a day after, so, we can think of something that we would like to implement in our life from day 1 of the year to become more financially strong.