It’s your thoughts determine whether you are Rich or Poor
If you’re filled with poor thoughts about Rich then you are poor because you tend to spend more to look rich, it’s a misunderstood concept.
who saves becomes rich, not one who spends.
.If you spend all your monthly earning for expenses, you are poor and
If you spent 65% of your earning for monthly commitment (which include household expenses), you are rich.
The thoughts of Poor make them more poor. They subconsciously feel they are not rich. They move to the mode of spending in front of others to show they are rich. Actually they overspent on each category.
While buying a house they spend for more decorative things to look rich, actually in crises these decorative things will not fetch even 10% of the cost spent. Buying a Car on EMI, and struggling to maintain. Buying more Gold seeing their investment locked up dead because there will be no return. Buying a house on Loans and paying one and half times interest on the cost of the house and losing all their cash flows. Maximum Use of Credit Cards and pay the minimum amount and end up paying 36% interest.
Poor accumulate assets paying a minimum of 2.5 times that price. They discount their future life for enjoyment today by paying interest. They believe in passive income more than hard earned income to become rich. Richness was more towards discipline of expenses than more avenue of income. If you watch every time you get an increment you tend to spend more than you save. So, Increase in income will not make you rich.
Who is Rich?
Buying a Car on loan by paying 30-40 as margin.
Buying Home paying at least 50% as initial payment.
Use of a Credit Card as an option for cash and paying in full on due date.
Buying Insurance on bulk payment to safeguard his family.
Investing in SIP in Mutual Funds to average risk in order to earn high returns
IF you watch your life according to your income, you learn more. Spending is not rich but spending wisely is the only way to escape from being Poor!!