Why Some High-Income Earners Live Paycheck to Paycheck or Go Broke

by San Antonio Attorney

Making a six-figure income can help make your dreams become a reality, but it does not remove the risk of spending more than what you earn.

Successful professionals regularly earn a sufficient amount of money to afford both everyday luxuries and expensive big-ticket items, from brand new automobiles and extravagant meals to pricey second homes and amazing vacations abroad.

But many high earners wind up creating a lifestyle they can hardly manage to pay for, living paycheck to paycheck and saving almost nothing for retirement.  In some cases, they cannot even pay the bills, particularly if they have unforeseen expenditures or lose their jobs.

While lower income earners can experience problems and monetary troubles that are much more serious, the effects of constant overspending can be crippling no matter how much money you make.  Certainly, people can reduce their expenses.  However, those who are constantly overspending tend to be seeking to fulfill both emotional and material needs.  They cannot track their spending by their lack of understanding that the root of their money problem is on the emotional level.

To avoid going broke and stop living the paycheck-to-paycheck lifestyle, it is necessary to control spending habits.  It can be difficult, but it’s worth the struggle.  There are many useful strategies that can be used, such as documenting income and basic necessity expenses to have a clear sense of one’s disposable income.

To the working-class households, a six-figure income may sound like the antidote to all financial worries.  But having higher income does not always confer better financial management skills.  Even high income earners find that it is incredibly easy to get caught in the debt trap, which is living beyond one’s means.

Just because a household has two good income earners does not mean they will not be eligible for a bankruptcy. With expert legal advice from a San Antonio Bankruptcy Lawyer, those who need bankruptcy protection may find that they can meet the requirements after all.

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