General Information

What Does High Income Mean?: Does High Income Mean High level of Wealth?

High Income means people who are earning the income which is far above than the average level of income of that nation. These people look rich and wealthy. But I call them High Income / Low Wealth Accumulator Group of people.

Because of the High level of Income, these people spend more and buy luxurious items to look rich. But unfortunately, high income doesn’t mean higher conversion of wealth. To realize high income, these people have to pay more in taxes and thus, they fail to accumulate more in wealth.

While Wealthy people realize very less in Income and more in Capital Gains to avoid tax. People believe that, High Income means rich. But it is not true. If you earn a lot but spend all of that income than you can never be wealthy.

A Wealth has to be accumulated. You can not become wealthy by spending more. You have to accumulate more Assets if you want to become wealthy. To become a wealthy, you have to realize less in taxes and more in Investments (Such as Capital Gains).