Building Wealth With Credit Cards – Is it Really Possible to Do This?
Growing wealth inequality has had devastating effects on equity of opportunity, not just between generations but also over the long term, as accumulating wealth at faster rate than wages of less fortunate people becomes the norm. This article uses new data from Italian inheritance taxes to demonstrate that the richest 1% (a million people) earned an average of 23% more per year than the median wage of the population in the same year. Moreover, the Gini index – a measure of income equality used by the World Bank to assess income mobility – shows that increasing concentration of wealth at the upper end of the society increases the gap between rich and poor, with more than a quarter of Italian men and nearly a quarter of women in the Gini index’s top one percent.
So what are these “little things” that you can do to build a little extra wealth to support your dreams? We all know about little things that we can do to make our lives a little bit easier, such as cleaning the house, cooking a nicer meal, getting out of traffic jams – the list is endless. But the question is whether those things really give us the extra income we need or deserve. The answer is not straightforward because income is very much influenced by lifestyle decisions rather than by ones actions. However, if we can learn to make a few minor changes in our life, we can start earning more money and feel a lot more secured about our future.
The first thing we need to look at is how we spend our money. One of the largest influences on our financial status and future is the ratio of monthly income we take out against the total amount of money we save. Many people do not take the time to save for retirement, which leaves them with less money for housing, education, medical care and other things. In addition, many people with accumulated savings are unwilling to let go of their hard-earned cash for emergencies. Because of these attitudes, many people are building wealth with credit cards, but instead of building wealth with hard work, they are building debt.