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| Credits: OCBC |
This is a chart I happened to see from OCBC on facebook, I thought I'll share it with everyone.
The chart's pretty self explanatory, showing how different groups of people spend/manage their money, such the top group, which are spenders, people like me reducing our wants to give more income to save and invest, and the last group where they need not rely on salaried income to provide for their needs and wants.
I would point out I initially started as the top group until the past few years (during my university) where I transitioned from the top group to the middle group, aiming to reach the group at the bottom.
It is also in the middle group that you notice that wants are reduced (frugality) so that you can divert and channel more capital from the small salary you have to generate more capital in the future.
It is only when your investments/businesses run to produce sufficient income (passively) would you be financially independent.
Which group are you on the chart?
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