This is why an emergency fund is so important.
The appearance of wealth can be so illusionary. Income levels are
not necessarily great predictors of wealth. They are ok at predicting the
accumulation of "things" though.Rather, savings can be
realized and enjoyed at any income level if individuals and families can control
their spending and build regular/monthly savings into their financial plan. If
one is saving regularly, they are wealthy. Doesn't matter income level.
So %50,000 cash is considered "wealthy?"
In my opinion, it doesn't matter how much money you make. If you are living
paycheck to paycheck you are not wealthy.
$50,000 is not wealthy, especially if it is locked up in depreciating assets
like cars which should be classified as consumption items. $50k only generates
about $3,000 per year at 6%, not enough for even a month's worth of
expenses for most families.
I think If you and your spouse ain't together on money, you ain't
gonna have any. Money can get spewed all over the place if it's not
channeled. Pay check at a time is all we have.
Live below your means. Save and invest regularly. Have a food storage. If bad
times come, you will be able to weather the storm.
Maybe someone should conduct an experiment to judge the article's thesis.
I'll be the wealthy guy, and you can get someone else to be "Mr.