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.
How blessings become curses
Earning six figures doesn’t mean anything anymore. It’s how you spend your money that determines your financial success. There will always be broke people in every financial category (five-figure earners, six-figure earners, seven-figure earners, eight-figure earners, etc.)
Earning more money doesn’t guarantee financial success; if anything earning more money will simply reveal whether you are a good or bad manager of your money.
I’ve witnessed so many people come into more money only to go bankrupt or constantly need personal loans or their next paycheck because they run out of money as soon as their paycheck hits.
More money can never be the solution to bad spending habits. Good spending habits is the solution to build wealth and will create the opportunity for you to build exponential wealth as your income increases.
Here are the trends for the average spender:
People tend to spend all of their incomes.
People tend to spend their projected incomes.
People tend to spend more than their incomes.
More money never equates more financial freedom, independence, or options unless you practice skillful stewardship of your resources.
Increased Business Revenue
I’ve seen companies that experience strong economic periods aggressively increase their spending only to have to make painful cutbacks across the board.
Why did billion dollar and multi-million dollar revenue generating businesses need financial help from the government?
It doesn’t quite add up?
Overspending and lack of financial planning.
Promotional Salary Increase
An easy thing to do after receiving a promotional salary increase is to go out and spend your money. Things you might consider spending that extra money on might include:
A bigger home
A nicer or newer vehicle
A new wardrobe
Gifts for friends and family
Eating out more often
New tech gadgets
Higher recreational spending
More monthly expenditures and subscriptions
The trick to effectively managing your promotional salary increase as a good steward is to not change your spending habits at all, but instead to act as if you never got the salary increase in the first place.
If you’re consistently getting promoted with salary increases, but never seem to catch a break financially, you need to stop expanding your lifestyle; you’re spending too much money.
Learn to slash cost, and live below your means, so you can save and invest your money to create breathing room and more financial options.
Bonus or Lottery Win
Why do so many lottery winners go broke or wish they had never won in the first place?
Because they don’t know how to be wise stewards of large sums of money – likely because they were poor stewards of the money they had before they came into the significant sum.
Bonuses and lottery wins are optimal times to slash financial goals, such as paying off a debt, building an emergency fund, or stacking up your investments.
After you pay yourself first and ensure you’re on track with your investing and financial goals, then is the time to spend more liberally.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.