Earning More doesn't Fix it,Financial Discipline Does

[Berry2d]

Money is psychological; its multiplication comes from the intelligence in handling it. Poverty comes from a mindset: like, spending more than you earn, buying things you'll never use, the need to show others that you're doing well, traveling, going to a trendy club, or dining at a luxurious restaurant, not for personal pleasure, but to show off and gain approval from others.

That is not the true definition of poverty, some wish and pray for a life changing opportunity so as to get away from poverty finds it difficult know matter how hard they try. Some that where opportune to get the key of open doors but misuse all because of quest for self satisfaction and they above mentioned reasons but some never had the opportunity talk more of mismanaging them, so in talking about poverty we need to be precise because its not all that where born with a spoon talk more of silver or golden spoons but they find reasons to live and pray for a day of liberation to come

[livingfree]

Once income is higher, options open up. You can save, invest, take risks, build assets, make mistakes and recover. That’s real. Higher income makes everything easier.

But here’s the catch income alone isn’t the full solution. Plenty of people earn a lot and still stay broke because they don’t manage it well. Financial management still matters, especially once your income grows. Otherwise your expenses just scale up with your salary and nothing really changes.

I agree about making mistakes when someone is earning higher income. People are prone to that because they like to try new things.

And another thing is the lifestyle inflation because as your income inflates, your lifestyle also comes with it because you're purchasing things now that you can't before.

So people who earns higher should need to assess themselves on how good they are in management their finances.

[Olatundespo]

More income can solve short term cash pressure, but it doesn’t build wealth by itself that only happens when spending is intentional and delayed gratification becomes normal. Until someone learns to say no to lifestyle upgrades, every raise will feel temporary discipline isn’t exciting, but it’s what keeps money around instead of watching it disappear.

If you have a higher income, this is actually very good for you. If you feel that there is no significant change in yourself, that is your mistake in managing your own finances. You have to introspect, throw away unnecessary lifestyles. In a situation like this, it should be an opportunity for them to build or start a business because in terms of capital, they already have it or are ready to build it. This depends on the person whether they have the intention or not. In building a business, there must be sacrifices to achieve what we want. Building a business or enterprise is much better than fulfilling your lifestyle.

With the increase in income, your needs will increase by leaps and bounds. No matter how hard you try, this will continue to happen because psychologically you keep moving forward and make every effort to maintain your standard of living. When my income was very low, I often had to borrow to meet the needs of my family. Due to the periodic increase in salary I had to manage funds to repay the past loans which took many more years. This problem is more pronounced for people with low income. Even after the increase in salary they have to remain poor because they have to carry the burden of past loans. Despite the mental preparation to reduce unnecessary expenses many people cannot get to a financially comfortable position because of their past mistakes. Trying to create multiple sources of income and increasing investments for the future may be considered the right strategy for you.

[r_victory]

Money is psychological; its multiplication comes from the intelligence in handling it. Poverty comes from a mindset: like, spending more than you earn, buying things you'll never use, the need to show others that you're doing well, traveling, going to a trendy club, or dining at a luxurious restaurant, not for personal pleasure, but to show off and gain approval from others.

That is not the true definition of poverty, some wish and pray for a life changing opportunity so as to get away from poverty finds it difficult know matter how hard they try. Some that where opportune to get the key of open doors but misuse all because of quest for self satisfaction and they above mentioned reasons but some never had the opportunity talk more of mismanaging them, so in talking about poverty we need to be precise because its not all that where born with a spoon talk more of silver or golden spoons but they find reasons to live and pray for a day of liberation to come

I understand your point of view, and perhaps I didn't express myself well.

Poverty isn't just a lack of money; there are people who have billions in the bank and are miserable as individuals. I know that a lack of opportunity hinders many, but it's also necessary to know how to create your own opportunities. How many people here on the forum live in countries with few opportunities, some even in extreme poverty, and how many opportunities to generate income do we have here?

In my country, I see many "poor" people with the latest smartphones, fashionable clothes, spending vast sums of money to post "successful" photos on social media, going into debt to gain social approval. That's the poverty I was referring to—the mentality of wanting to show off what you're not to people you don't even know.

Read the stories of these people; besides the opportunity, you need to be prepared for it: https://www.moneymade.com/careers/incredible-stories-people-who-went-extreme-poverty-unimaginable-wealth

It's easy to think they were lucky, or that they're privileged, that the famous person suddenly became rich overnight. What nobody knows is that this "suddenly" took years of hard work to happen.