During my time in finance one point has become abundantly clear - the key to wealth creation has very little to do with the size of your pay packet. In fact, I would go so far as to suggest that a higher income can sometimes make it more difficult to become wealthy!
There are a few reasons for this but the first one is:
The more intelligent you are, the more you're likely you are to earn a good income from Day 1 in the workforce and the more likely you are to get trapped into the rich lifestyle cycle.
The reason for this is that having high earning capacity is a bit like owning a fast car. If you know how to drive it and watch your speed it's all good. But if you don't drive that well, or if you forget to watch the odometer you can end up crashing & burning or, at the very least, you can end up with lots of speeding tickets.
A good income from an early age often leads to the creation of a lifestyle that makes you feel rich - a life with the latest gadgets, cars and a steady diet of good food and fines wines - but the rich lifestyle is the very thing that keeps you poor. In essence, you earn a great income but most of it's already spent before it hits your bank account.
I agree! It is what you spend that makes the difference, and far too many people spend more than they earn!
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