Misc. Finance

Your Salary Might Not Determine Your Wealth After All

Often, we blame our job positions for our seeming lack of wealth. If only you had a high-paid London job, you’d be able to live the life you desire. At least, that’s what you tell yourself. But, is it true?

In reality, having a high-paying job isn’t the easy path to wealth that you might think. Nor is it the only way to reach comfort with your finances. In fact, many people who earn big bucks end up with less money than their lower-earning counterparts. You’d certainly be hard pressed to find anyone who classifies themselves as ‘wealthy.’

via GIPHY

We all convince ourselves our lives would improve if we could earn more money. That seems true whether we earn £100,000 or £30,000. In fact, people who earn less often stand the best chance of achieving ‘wealth’. It may sound like madness, but keep reading to find out why.

More incentive to save

Wealth is more about how we handle our money than how much we earn. It can be challenging to find an incentive to save with another hefty paycheque coming along. Hence why big earners often end up with nothing left in the bank. By comparison, lower earners have far more incentive to save what they do get. Thus, they may keep money in the bank for longer. Of course, this doesn’t apply to those who are barely able to cover their lifestyle costs. But, if you earn around £50,000 a year, the chances are that you have a little left over to put aside. And, sometimes, being sensible with money this way is the only way to make ourselves feel ‘wealthy’ as such.

More reason to look for earning extras

It’s also worth noting that those in high pay brackets have little incentive to look for side hustles. What’s the point when you have a pay packet like that coming your way? By comparison, lower earners are increasingly looking to these options. Many of us now research how to make money on the internet or how to earn in our spare time. With side hustles like blogging now offering a considerable return, this can see us earning a lot more than we would from a single salary. It may take a while, then, but low earners now stand to overtake those in high paid positions in time.

A better grasp on money

At the very least, earning less gives us a better grasp on money. Wealth is a relative term, after all. It’s difficult to put your finger on exactly how much is ‘wealthy’. If you have plenty of money to play with, then, you may fail to appreciate the benefits you have. You may even keep wishing for more. By comparison, those on the lower end of the scale tend to have a better grasp on how much money they need. This is a goal they can work towards using the pointers above. And, that could well end up being the path to wealth in its purest form.