5 million is just a rough figure. You can earn 5 million by say 50 years old or 55 if you have a higher income since this dictates that you have more capacity to save. So whatever you are saving right now that gives you the 2 million, the other individual is probably saving twice as much-since he has the capacity to-and therefore can reach 4 or 5 at the same age.

Secondly, it is true what you say, however there is a loophole

This was misunderstood by another member, i forgot his/her name,,so I will repeat once again.

A earns 1 k a month, and he saves 600-he is wealthy. What does this life dictate? That you are a slave to your money. Remember- you cannot do both. Either you are sacrificing your lifestyle or you are sacrificing your purse.

So I would rewrite your sentences this way:

A earns Rm 1000 a month, he saves RM 600- he is rich in wealth, but poor in lifestyle.
B earns Rm 10 000 a month, he spends Rm 12 000-he is poor in wealth, but rich in lifestyle.

There is another person-this person not many people know of.

C earns Rm 100 000 a month-he spends Rm 50 000 and saves Rm 50 000-he is rich in wealth and rich in lifestyle.

Okay before you go on a rage, yes he can choose to save Rm 80 000 or Rm 90 000, since Rm 50 000 is a rather obscene. But the emphasis is on ,, which I have been repeating for the last few posts ..the freedom of choice.

C can CHOOSE to spend Rm 50 000 or maybe spend like A , only Rm 600. Regardless, he has saved more EITHER way he spends.

Why is that? Because his earning capacity has increased.

This is the problem with always focusing on the expense side of the equation-your control is limited.

A person to have successful financial management should focus on the revenue and expense side to have a healthy wallet and lifestyle.

Well here is where we differ. Yes I believe everyone can push their limits and make a fortune. Of course they can.

Your first point:
Many people earn the average-yes, of course they do. That is why only 0.1 percent of the population are milionaires (USD).

Second point:
Yes of course you must spend within your means. Please read my post on page 92. No matter how high or low your income you should never overspend-this is common sense.

However, you are moot on one point. Your lifestyle and spending has to accomodate your income until you find the opportunity so that your income accomodates your lifestyle.

Third point:
This one is a fallacy. Are we living in a socialistic state where everyone earns the same in whatever he does? Of course not.

No numbers are not made out of nowhere-those numbers are real numbers from real people with real jobs.

If you use your example, then of course again I have said,,common sense dictates the person who spends less than he earns is better off.

Finally:
Yes as you increase your income, your spending can increase as long as it is within your means-or you can have the same level of spending as before and save even more-your choice. And no, you cannot choose your income, but you can choose your earnings-two different things.

But all this is redundant since we have two different beliefs from the very start of the post.

I agree with you that not many people earn 100 000 a month or more. So a person can choose to be like the not many or he can just choose to be average-if so, this is not wrong. You can still follow the points I listed to have good personal finances the slow way on page 92.