How much money you make is not as important as how much you save


How much money you make is not as important as how much you save. That's the key to achieving financial independence


Whether you earn VND 10 million or VND 50 million a month, if you are living on salary alone, you will face a precarious situation as soon as money no longer "runs into your pocket". That's why many rich people quickly go bankrupt and become broke. They are used to a certain lifestyle and cannot continue to maintain it when they run out of money. ‏

The more you save, the safer you will be from accidents. The problem is that saving 10% of your salary, when you only earn 10 million dong a month, is a lot harder than when you make 50 million dong.‏

‏Here are 4 popular types of financial thinking in the world and lessons to remember for everyone‏

1. Rich people don't know how to save

‏People in this group often have "rich people's problems" such as:

‏I have an indoor swimming pool but I don't have enough money to hire someone to clean the pool‏

‏Have 3 houses but are struggling with mortgage payments‏

‏There are dozens of membership subscriptions that are never used, but still deduct money from the card every month‏

‏Spend the last few hundred thousand of the month to refuel a few cars

‏Can't afford to pay tuition fees for children in private school‏

‏These people can be famous on social media, and although you may envy their lifestyle, never try to imitate their financial habits. These people can make a lot of money, but they keep it very poorly.‏

In the US, more than 4 out of 10 high-income consumers live on wages. This means that at the end of the month, they have very little money left to spend.‏

2. The poor do not save

‏Usually, people who earn little money can't afford to save, especially when inflation is on the rise. However, even if you only make 10 million/month and manage to invest 5% of your income (500,000 VND) in a low-cost index fund, you can still build yourself a hedge fund. . ‏

‏People with low-paying jobs often have low levels of education, and therefore don't have much awareness of the financial system. They are even less aware of any options for getting out of poverty. ‏

‏About 10% of Americans are living in poverty, but experts say this number is inaccurate because it is based on an official poverty measure that has barely changed since the mid-1960s. In fact, Nearly 20% of Americans earn less than $25,000 per year.‏

3. The poor know how to save

‏Many people don't earn much but remind themselves of the benefits of saving and building a better financial future for a chance to get out of poverty.‏


‏Education is also very important and just attending a public university is enough to equip with the basics of money. Ramsey Solutions recently released the National Millionaires Study - the largest survey of millionaires ever with 10,000 participants. They found that only 8% of millionaires attended prestigious schools, while nearly two-thirds (62%) graduated from state public schools.‏

4. Rich people know how to save (group 1%)

‏People in this group also have “rich man problems”, but unlike the first group, they can afford those problems and still have money to spend at the end of the month.‏

‏One in 10 Americans earns more than $200,000 per year, and you have to earn an average of $600,000 to be in the top 1%.


A person making $600,000 a year can easily live on just 10% ($60,000) of their income without making lifestyle improvements, but in reality very few people do. Our social behavior is driven by social media, advertising, and how others perceive us. Therefore, very few people choose to live in a normal house with a normal car, when they earn up to $ 600,000 a year - enough income to be able to live in a mansion and buy a Ferrari. .‏

But if you make a lot of money and know how to save most of your income, you can actually become financially free in just a few years. And for the rich who know how to save, when they have accumulated millions of dollars, they continue to use that money to invest safely. They will also never spend money to buy a bunch of Gucci shoes, a Lamborghini or a 10-bedroom mansion, to avoid the money in hand gradually running out.‏

‏People who earn and save a lot of money understand the financial game. They choose to live below their income, and gradually multiply their wealth by using money wisely .



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