How to Grow Rich on a Meager Income

Before you go crazy trying to work your way to a 7 figure income be sure to define what rich is. Can you grow rich on a meager income? You can, but is it necessary. Most people have an association thinking you have to making 7 figures to feel wealthy as opposed to focusing on the disposable income. Focusing on the disposable income factor as opposed to making 7 figures is a good way to feel rich sooner.

Income vs. Disposable income

When making 6 or 7 figures you automatically assume that person is rich. By standards a person making 6 or 7 figures is considered to be rich. If the same person who makes 6 or 7 figures has disposable income of $2,000 are they rich? Well some may argue yes and some may no. Personally, I like to focus on disposable income. If you make 5 figures closing in on 6 figures you as long as you live well below your means you can enjoy the vacations and luxuries of someone who makes 6 or 7 figures. Most people do not realize the importance of disposable income. Most people won’t heckle someone making $60,000 or $70,000 for large sums of money, but the minute some one finds out you are a millionaire, well, forget about it.

Live below your means

Living below your means is a good way to grow your money on a meager income. Living below your means frees up room between income and expenses. When living below your means you living with essentials and a few luxuries. Most people when they make the adjustment of living below your means often like the idea of financial freedom. Financial freedom allows you to make better choices in your career. When you live paycheck to paycheck you can be leverage because you have bills to pay.

No one will know

If you are making $30,000 and barely surviving no one will what you are doing with your money unless you tell them. If you cut back on expenses and start investing your money while making $30,000 know will no one will what you have in your bank account. It is better to invest when you have a meager income and not say anything. If you are looking to grow rich and have a long way to go salary wise then you should focus on disposable income rather than salary amount.

There are several ways to grow rich on a meager income. You have to be proactive and find ways. There is no reason for anyone not be or feel rich. Good luck!