Have you ever been surprised when you found out someone else’s annual income? Annual income is something that is usually not discussed with others. This information is generally private, but people estimate how much money others make based on the cars they drive, the amount of money that they spend on a regular basis and how relaxed they may seem when it comes to money. However none of these factors can give a true picture about how much money a person makes. And in reality (well partially) it is not so much how much a person makes but how he manages it that makes the biggest difference.
People, whom you would expect to have a lower income, because they own a modest home and cars and do not spend frivolously, may be better off than you realize. If they are saving money each month, and investing it wisely, they may a greater net worth than those who make tens of thousands more a year. They also may make a significant amount of money, but they are choosing to invest it, so that they can retire comfortably.
While you may think someone is well off simply based on appearances you may be sorely mistaken. Too many people are driven to maintain a certain image and do so at the expense of their financial future. Debt is a secret that many people keep well hidden. Some people may have debt as a result of past medical bills or other extenuating circumstances.
Ultimately you need to decide what is more important to you. Would you rather have peace of mind and a secure financial future or the appearance that you will have a secure financial future? If you make enough money, you may be able to have both. Taking wise steps now will open doors for you in the future.
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