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Most people with a very high salary end up with an expensive lifestyle to match it. If they lose their job, they’ll need to find another one before long. In thi
by danenania 5y ago
Most people with a very high salary end up with an expensive lifestyle to match it. If they lose their job, they’ll need to find another one before long. In this sense, they are not that different from someone making 1/10th the salary.
The main difference between being rich and being wealthy is owning and controlling your time.
- paulpauper 5y agoI hear this argument a lot. Why would lifestyles become more expensive if you become an exec but not a successful entrepreneur? Successful entrepreneurs like fancy, nice things too.
- danenania 5y agoThat’s true, but the entrepreneur owns some piece of an income-generating asset. If the exec stops working, their income immediately goes to zero, and if they didn’t save or get some equity, their wealth could be near zero too. The entrepreneur can stop working, but still be left with both income and a valuable asset (their piece of the business).
- medvezhenok 5y agoThe exec can invest his excess income into income-generating assets as well, with no problem. In addition, he can use his constant cash flow as collateral to take out a loan to invest in same income generating asset. And the variance for the exec is much lower than for the entrepreneur (failure rate much much higher for startup founders). So it's not apples and oranges.
- rabuse 5y agoThe article literally covers everything you stated.
- AuthorizedCust 5y ago> Most people with a very high salary end up with an expensive lifestyle to match it. Evidence?