the key difference between rich people and poor people

Jim Rohn once gave a simple definition of “rich” and “poor”. He said, “Poor people spend their money and save what’s left. Rich people save their money and spend what’s left.”

Money management is not rocket science. Building wealth, at its core, is all about staying disciplined. 

Prioritize saving over spending. When you build savings aka your emergency fund, it’ll equip you to navigate the curveballs that life throws at you. You’ll be much better prepared to handle the “winters” and “valleys” that you encounter. When you have a hefty savings account, it’ll give you the much-needed peace of mind. You’ll sleep a little bit better, trust me. 

Commit to saving a certain percentage of your income every month. And then automate it if you can so that that amount goes to the savings account every month without fail. Let a few years lapse and you’ll find yourself having a solid emergency fund, after which you can direct your money towards investing and building wealth. Keep going this way and in a decade or two as the magic of compounding kicks in, this simple philosophy will make you “rich.” Pretty straightforward, right?

So, don’t wait anymore, start saving right away. Your future self deserves it.