Why Two People with the Same Income Can End Up Rich or Broke

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Two people earn the same income, let’s say $85,000 a year. But fast forward a decade or two later, and one is financially free while the other is still stuck in place.

So why does this happen? In this post, we’ll go through the key differences in habits, mindset, and decision-making that determine whether someone ends up rich or broke.

Income Is Only Part of the Equation

The first thing we need to understand is that what you make is only one part of the equation of becoming rich and wealthy. Sadly, it’s the one thing our society focuses on the most.

How much you make is more fun to brag about and talk about than the boring financial habits that actually build stability.

According to a 2024 payment study:

• One-third of people earning more than $200,000 a year live paycheck to paycheck.
• 48% of people making over $100,000 per year also live paycheck to paycheck.

This shows that even people earning two or three times the average income in the U.S. can still struggle financially.

Three Common Mistakes That Keep People Broke

Habit #1: Lifestyle Inflation