Answer: Both are important but spending less is more important. For example, there are many famous people who made tons and tons of money but who are not wealthy and who at one time or another filed bankruptcy. The list includes Mike Tyson (boxer), Donald Trump (entrepreneur), Anna Nicole Smith (model-actress), Ted Nugent (rock star), Robert Kiyosaki (Rich Dad, Poor Dad author), and Larry King (talk show host) just to name a few. You can probably think of many others. In fact, about 35% of lottery winners of more than one million dollars are in financial difficulty or have filed bankruptcy within 10 years of hitting the jackpot. One more question: What kind of car does Warren Buffett (world’s 2nd richest billionaire) drive? Answer: A 2001 Lincoln Town car with a license plate that reads “THRIFTY”.
So it’s not how much you make that’s important but how much you save and I would also add in how wisely you invest those savings. Almost anyone with a steady job and average income can amass a small fortune if they are wise with their money. My three rules for achieving wealth are:
1) Spend less money.
2) Invest wisely (or at least have solid financial knowledge).
3) Make more money (nice to have but not required).