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The Difference Between Being Rich and Building Wealth

Beginner Investing • 5 min

A surgeon earning $400,000 a year and a schoolteacher earning $55,000 a year can end up with completely opposite financial outcomes than their incomes alone would suggest. Income is money earned in a given period. Net worth — assets minus debts — is what actually determines financial security and freedom, and the two aren't the same thing at all."Lifestyle inflation" is the common pattern that breaks the connection…

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