This Is Why You’re Broke
“You spend too much money.”
Image from Pixabay
That’s it. Thanks for coming to my Ted Talk.
Here’s the truth, when I was younger, I thought I was good with money because I got out of debt and refused to go back into it, but I never had any “real” money. I’d hear people having 20, 30, 40 thousand dollars saved, and I’d give the excuse of “well I just don’t make that much money”.
The reality is that I was simply spending it.
Sure, there were people making more money than me, but when I sat down and actually looked at what I was spending every month, it became very clear that I loved to swipe my card.
I may not have been living beyond my means, but I was living AT my means.
According to a study done by LendingClub in 2023, almost half of Americans making over $100,000 were living paycheck to paycheck.
Almost immediately, people will bring up higher inflation, and higher interest rates, and all the stuff going on in the global economy that they have no control over. But I challenge you to take a hard look at yourself and your actions, not on something you can’t control.
Many of us suffer from lifestyle creep, and so the inflated life we’re used to living feels the pinch when things become more expensive.
But what if you took a step back and looked at what you were actually spending your money on?
I did this. I sat down with 3 months worth of my expenses (and this was before crossing over the 6 figure mark), and I realized that I really was wasting money.
I was spending money on 3 different movie streaming services, 2 music streaming services, and buying technology that I didn’t need but I liked every month. I was also going to eat out with friends every Friday and again on Sundays for football. I was a mess.
So I got on a budget.
Image from Envato Elements
I tracked everything for a few months, and I made saving and investing my money automatic.
Now, when my paycheck hits my account, money is immediately routed out to my IRA, my brokerage account, my emergency fund, future car fund, and my bills payment account. After that, I’m free to spend whatever is left over.
It’s an incredible feeling to watch your money grow over time, but you have to work at it, and you have to be honest with yourself.
