There are countless examples of a celebrity going broke despite making millions or business houses going under the carpet despite making billions.
The problem is spending more cash than one earns.
There are people who earn 20k a month & others 2L a month and both can live a poor life.
Here’s how:
1. High expenses.
2. High debt leading to high monthly EMIs depleting the cash reserves.
3. Flashy lifestyles (Spending more to show off than saving).
All these 3 leads to high cash outflow leaving you with little or no cash. This cash problems further limits the savings & investing power. Keeping one perpetually poor. Living hand to mouth. Irrespective of the income.
Remember, real wealth is hidden. In stocks, real estates, gold, etc & not in showing off iPhone, jewelry, car on EMI.
Always aim for cash surplus > deficit. It’ll give you more financial options & a better runway.
Most people (I guess 80-90%) have this issue of managing cash flow & lead a non fulfilling life despite high incomes.. Master the cash flow. Nobody talks about this in personal finance.
Cash is the king!
