A Lot Of Money Alone Won't Make You Rich

Photo by Tim Clayton

Do you believe that having a lot of money is the key to being wealthy? 

Do you believe that earning big amounts of money will instantly make you rich and wealthy?

Sorry to burst your bubble but the answer is no. Having a lot of money alone won't make you rich and wealthy, you'll need the ability to retain some of that money to become rich and wealthy.

Imagine all the money you received since you were a kid up to your present age. If you add all that up, you'd be surprised that you've already received millions worth of money. The problem though is that, the money only passes through your hands, that's why you're still not yet rich and wealthy.

That is the key to becoming rich and wealthy and the secret of wealthy people. It's their ability to retain the money that they receive, either through their job or business. It doesn't matter if you earn only P10,000 a month, if you're able to keep at least half of it, you'd be wealthier than someone who earns P50,000 a month but only manages to retain P1,000 out of the money he earns.

You're ability to retain the money you earned and use it to acquire assets that generate you income, like rental properties or businesses is the real secret to becoming rich and wealthy. Even if you earn one million pesos a month, but spends it all on things that doesn't earn you money, you still won't be considered rich or wealthy. What will you do then if your income generating job or business suddenly disappears? Will you be able to survive for 6 months? 3 months? 1 month?

Remember that having a lot of money alone won't make you rich and wealthy. You're ability to keep the money and use it to acquire income generating assets is what will determine if you're rich or not.