Is a high salary or low expenses more important for building wealth?

Question

Rich Dad · Accepted Answer

If your income isn’t growing, you’re just dieting your way to wealth — and nobody got rich eating financial salads.
Low expenses matter, but they have a ceiling. You can only cut so much Netflix and coffee before you’re arguing with yourself over toothpaste brands. Income, on the other hand, has no ceiling. A high salary — or better yet, scalable income from businesses and investments — gives you fuel. Wealth is built on surplus cash flow. The bigger the surplus, the faster you buy assets.
Focus on increasing income first, then control lifestyle inflation. I’d rather see you earn $300K and spend $100K than earn $60K and spend $30K. The first person has power — capital to deploy into assets that multiply. The second person just has discipline. Discipline is good. Leverage is better.

Poor Dad · Answer

It doesn’t matter how much you make if you spend it all — plenty of broke doctors prove that.
A high salary is wonderful, but it often comes with higher stress, higher taxes, and higher lifestyle expectations. Bigger house, nicer car, private school — suddenly your “high income” disappears. Keeping expenses low creates stability. Stability lets you save consistently, invest steadily, and sleep at night.
If I had to choose, I’d say controlling expenses is more important because it’s within your control. Salaries can be cut. Jobs can disappear. But disciplined spending builds resilience. Ideally, earn more — yes — but never let your cost of living rise faster than your income. Think about your pension and long-term security.

Is a high salary or low expenses more important for building wealth?

Rich Dad Says

Poor Dad Says

Whose advice would you follow?

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