This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
The more you earn, the more you should keep
300k+ is what this person has annually earned the past couple of years.
Yet, they have less than 100k saved in the bank.
How does one earn almost half a million dollars yearly, with low overhead, and have less than 1/3 of their annual income saved?
They don’t have kids. So it’s not going there.
They don’t have any major bills besides housing and a car note, which totals about $4,000.
But that would still leave roughly $12,000 monthly (after taxes).
If they saved half of their monthly income, they would be saving almost 100k every year.
So where is their money going?
I couldn’t answer the question based on the things I could see with my physical eyes, which means their money goes to food, debt, recreational activities, technology, or bad investments.
Doesn’t this sound familiar?
Earning six figures and taking home a large stack of cash each year doesn’t mean squat if you’re not managing it correctly.
Many people are in a similar predicament.
They earn x dollars but save too few dollars.
The more income you earn, the more opportunity you have to increase your savings rate significantly.
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Too many people miss out on savings and investment opportunities because they don’t implement self-discipline in their financial habits.
And if you’re not tracking your money, it will find a way to disappear.
Every dollar that comes in should have a specifically allocated place for where it lands.
If your dollars don’t have an intentional purpose, they will find a purpose of their own that often equates to moving you financially backward versus forward.
Consider yourself lucky if you have above average income
Most people earn less than six figures every year, which is not bad, but it also can limit their lifestyle, savings rate, and ability to build wealth.
If you come into a high annual income, manage it successfully.
And if you don’t know how to manage a large sum of money, read books to educate yourself to understand money better.
How will your financial portfolio look in the next 10–20 years?
Keep this question in mind to help guide you into managing your money prudently.
The average person’s answer to this question would be, “not too good” because they overspend, their expenses are extremely high, they’re not educating themselves about money, and they refuse to change their habits.
Most importantly, they refuse to consider the long-term consequences of their actions. It’s a common problem for people to utilize their money with short-term vision, which is why most people can’t afford a simple $500 emergency.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.