What is the difference between income and wealth?

There is a difference between income and wealth. Income is what you earn and it can be spent, but wealth is all the things that you have accumulated.

You can make lots of money each year, but if you spend it all, then you will not become wealthier. You could spend a lot and still have more wealth.

So what do we need to do to become wealthier? Wealth is created when you save some of your money and then invest. You can invest in things like stocks, bonds,real estate, gold, crypto, precious metals, etc.

Savings grow over time as interest accumulates, and investments can be worth a lot more than they cost you at the beginning.

Wealth = What you accumulate- Spending

Therefore spend less, save more, and invest frequently to become wealthy.