Many people confuse wealth and income, but understanding the difference is crucial for long-term financial success. While income refers to the money you earn regularly, wealth is the accumulation of assets that grow over time. Let’s break down the key distinctions and why both matter for your financial future.
What Is Income?
Income is the money you receive periodically, such as salaries, wages, or business profits. It’s essential for covering daily expenses, but relying solely on income can limit financial growth. High earners may still struggle if they spend everything they make without saving or investing.