Wealthy people hold assets, the rest are in debt.
Know what else wealthy people do?
- Don’t own most of their net worth in real estate (e.g. their primary residence)
- Don’t want to be a slave to anyone or any company and have the attitude to boot
- Don’t go into debt for consumer spending (e.g. clothes, electronics, vacations)
- Don’t leave huge chunks of their savings sitting in high-interest savings accounts
- Don’t believe that the only way to go through life is to be in crippling debt for anything, including houses
- Do make more money and look at increasing their net worth (e.g. they negotiate their salaries)
- Do take the time to learn how to manage their money (e.g.budget, invest it in index funds, ETFs, stocks such as dividend paying ones)
- Do take calculated risks
- Do understand that student loans (that lead to dead end jobs), homes and cars are debt traps if they aren’t careful
- Do spend their money and enjoy it, but within reason
And those who aren’t wealthy?
They do the opposite of the above, and blindly follow those who “know better”.
Because it’s the easier way out to go into debt for a flashy new car or an overpriced home than it is to really consider that you are buying a depreciating asset (car), and a home basically returns zero to your net worth (or less) over the long-term, if you take on a huge mortgage you can’t really afford and spend 30 years trying to pay it off while living on beans and rice.