There are lot of differences between being wealthy and being rich. Often times, the rich thinks they are wealthy, but they are extremely wrong. One can be rich and not wealthy, but it’s rare to find a wealthy person that is not rich.In the aspect of finance, there are four levels people find themselves in:
1. Financial independence : The people in this category, have their potential income equivalent to their expense. They live in the ratio 1:1 category.
2. Financial freedom : In this category, their cash flow income is double of their expenses which makes them financially free. They live in the ratio 2:1 category.
3. Financial riches : The people in this category has a system that provides them X3 or their expenses therefore after paying monthly bills, they still have enough money to spend… They live in the ratio 3:1 category.
4. Rat racers : For the people in this category, their accumulated expenses is higher than their cash flow, they are always in bad debt borrowing to pay bills.
Borrowing to pay bills can be be regarded as bad debt while borrowing to invest can be acknowledged as good debt.
Now that you have known the four levels of people based on their finance, which category are you in?
In our next post, we shall be looking at how one can graduate from one level of financial category to another, in other to reach the highest height.
Author : Uzoma Oranebo Christian
Uzoma Oranebo Christian is an undergraduate student of Mathematics at Federal University Ndufu Alike Ikwo. He is a motivational and inspirational speaker, and also, a veteran computer user. He is a financial management and a business intelligence strategist and a life coach.
Uzoma can be reached via:
08136277395 or firstname.lastname@example.org