Income is cash flow available to support debts. Income requires that you keep earning it or you have none. Lose your job and suddenly you have no income. You still have all of your debts, just no income to pay the notes with. Wealth, on the other hand, does not require job security to sustain it.
Wealth generates cash flow rather than consuming it.
A recent Gannett News Service report casts some light on the subject. According to the report, one-third of Americans have no savings, no investments and are in debt. Ten million households don t even have a bank account clear indication they are living from paycheck to paycheck. If indeed a third of Americans have no savings, no investments and are in debt, then they are living on the edge of economic disaster. They are certainly not enjoying the economic prosperity the politicians are all clamoring to claim credit for.