How To Spend Money Wisely?

if rich and poor people are such because of how wisely they spend their money, shouldn't their net-worth be relatively higher than income?

• I have heard many people say that people are poor because of poor money managment skills and that it has nothing to do with their incomes being unreasonably low. acording to the following chart I ran across while the top 1% rakes in 43% of the nations wealth, their net worth is only 35%... while the bottom 80% which includes those who must spend virtually all their income just to survive and as such have less left over to increase their net worth posess twice as much of the nations net worth as they do the nations income. doesn't this say that despite better rates on their loans that the wealthy are worse at managing their money than the poor and as such are also worse at managing the companies money than would be poor people? http://www2.ucsc.edu/whorulesamerica/power/images/wealth/Figure_1.gif

• Answer:

  My interpretation is that the majority (and possibly millions not at all-lower class) of us try very hard to invest wisely to increase what little we have. This would lead to increased net worth across the board for say, the middle class, or what is left of the middle class. The wealthy 1 percent or so, while they of course have their investments and speculations, they also have an abundance of liquidity so the pressure isn't on, so to speak, to manage their finances down to the very dollar, like the rest of us do. Surely many of the fabulously wealthy are very good at wasting money in fact ( see celebrities ). Granted this is speaking in generalities for all people in all classes, (certainly Donald Trump only makes more money, with money) and their are certainly a very many exceptions so of course i don't take attitude regarding my opinion on this, but it does seem to make some sense regarding your statement pertaining to the overall share of net worth as it relates to fixed income across the overall population.