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.
This is one of the best financial opportunities
One of my first thoughts is, what the heck are they doing with their money?
Well, we all know the answer to this question.
Most people spend more than they’re earning and live a lifestyle cannibalizing their entire income. It’s also not uncommon to hear people earning six figures maintaining six figures or more in debt.
Why do people do this to themselves when they have every opportunity to build significant wealth?
Well, it’s easy.
You can afford more things when you have a crap load of money coming in. Your credit limits increase, and you get bigger loans.
Not only that, but the big paycheck coming in provides you with a sense of security:
“I can buy that with ease.”
Who doesn’t want to treat themselves when they’ve finally made it?
Though lifestyle inflation isn’t foreign to people who consistently read this publication, some of you still fall victim to it because the traps of lifestyle inflation are so easy to fall for.
Paycheck Lookout
One of the worst things you can do as a six-figure earner is to be on the lookout for that next paycheck; this should never be an occurrence because you have above-average means.
If you’re living within your means, you should always be several paychecks ahead of needing a bailout.
An Easy Way To Avoid Lifestyle Inflation
Save a percentage of your income monthly, so you never spend more than you earn. When you save ahead of time, it’s impossible for you to spend more than you earn.
A primary reason why people fall into the trap of lifestyle inflation is they forget to pay themselves first.
The paychecks are more significant and brighter, enticing anyone to start making purchases that, over time, become bigger and bigger.
Consequently, you will eventually reach the point where you need your paychecks because you didn’t pay everything with cash and now have overwhelming minimum payments, car notes, student loans, a mortgage, and personal loans.
It all adds up quickly.
Take Advantage Of The 6 Figure Opportunity
If you’re earning six figures, you’re earning more than most. There is no longer an excuse to struggle financially; if you do, you do so by choice.
This is a prime opportunity to build wealth, save, invest, and have fun. There is room for it if you successfully manage your resources, but if you let the “fun” get out of control, you will lose out on building long-term wealth.
How Does One Earn 300k But Barely Have Any Savings?
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.