Where you rich or poor last year?
You are poor if what you owe is more than what you have ie assets values n cash is less than what you owe
We get broke in 2 ways
This is when you are investing most of your income in property ...stocks n shares ...endowments ....retirement annuity...taxfree savings ....and paying off debt. Yes you will not have any money left but you are indirectly building wealth. This needs focus and delayed gratification
You will be broke if you spend all your income on non growing assets such as cars and lifestyle. ...credit card and loans. At some stage you wont have any money to sustain your expensive lifestyle. May end up bankrupt cause you want everything now. It will be difficult to build wealth if you fall under here
It is better to be broke when you are investing than to be broke because you are spending on liabilities. A car is not an asset to you is the bank asset cause bank makes money out you...not a business asset as you will not earn more in your business if you drive a Range Rover to work than someone who drives a Toyota to work
.you will look cool but pay more for Range Rover