INCOME-income is that monetary term for which
an individual work.it is a periodic payment which is earned by any
individual after discharging his/her part of
obligation.
WEALTH-wealth
is a corpus of funds which a person has accumulated with his/her
savings,possessed by any will or inhereted.wealth is generally a
permanent nature fund which has the potential to generate a passive
income for the holder.
we can classify
the lifestyles of both types of persons-
People having only
income-
- as we know that
present consumption would be depending on the present income of the
person.
- the person only
having income as their earning would consume a large portion of
their income which could have saved and
invested.
- if they stop
working for a month or two, then they would face financial crisis
because they earn money as long as they render their
services.
People having income as well as
Wealth-
- people can
invest their wealth as per their risk capacity such as - creating
Fixed deposit, investing in equities, bonds, real estate and then
it would be generating passive income.
- the person can
spend the passive amount on consumption and can save their earnings
and in long term their corpus would increase with the concept of
compounding.
- in case if they
are not able to work for one or two months then their passive
income would take care of their expenditure and it would prevent
them to face any financial crisis.
the above
mentioned points differntiates the lifestyples of people with and
without wealth.