Be balance sheet rich

Most of the people want to earn lots of money. They think that they can be wealthy by making more money. On the contrary, in the true sense, a person can be rich only by having lots of surplus amounts, the small part of the amount saved after deducting all the expenditure from the earning.

Being a human being, we all understand the fact that we cannot live life without having to pay. We have to pay parts of our earning for routine expenses such as food, clothing, children school fee, taxes and many more. After paying whatever is left gets transferred to the balance sheet as assets.

To be the balance sheet rich is to create assets with accumulated surplus amounts. This could only be possible by spending less than whatever a person is earning. That is why the person who has lots of assets is wealthy and not a person who earns lots of money.

Earning lots of money is not a complete sign of being rich. However, it can help you to become wealthy quicker provided you control your expenditure. With high income, you can save much more money in a very short period. The secret of being rich is to set aside small part of the amount regularly and create assets on the balance sheet. That is why, no matter how much you earn, you can only be wealthy by spending less than you earn.

Hence, do not live your life from one paycheck to another; else you will be in deep trouble the moment you do not earn money for some period due to any unfortunate situations. As a thumb of rule, you should save at least 10% of your earning. The more you can save is the better. The assets you create on your balance sheet will make your life financially secure. And over a period, your assets start to earn money for you and make your life wealthier and comfortable.

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