Earning More doesn't Fix it,Financial Discipline Does

[joniboini]

If they don't have money, no matter how hard we try to be disciplined or manage our finances, what are we managing? Nothing! Well, it's even more perfect when we have a large income and plenty of money, and then we manage it accordingly.

To be fair, you have to be stricter with your spending if your income is abysmal. I read many cases like that in my country, e.g. someone who's trying their best to live with a $100/month salary even though the minimum monthly income is around $250 in their city.

Then again, it's not like you can only choose one over the other. Most of the time, the answer to a tricky question is to do all the answers. So, improve your management and increase your income if possible.

[jcojci]

Discipline is really needed to run your plan. If you want to get rich, you must allocate your income to investing and saving. Investing is the best thing because helps you prepare for the future by allocating money from now for several years. If they discipline themselves to allocate money to invest and save, they will see their funds grow and when the time comes, they can sell their investments. At that time, they will make a lot of money and may decide to retire. Having more money from more sources of income is good but without discipline, you will waste it. You will not think about preparing your future by investing but you will chase the lifestyle because you think you can keep up with it.

[pooya87]

If money alone made people wealthy, salary increases would end poverty.

That's not exactly how things happen though!
The sequence of events is that first governments print more money to cover up their own incompetence which will then cause inflation meaning price of everything goes up. Then because the older salary rates couldn't cover the increased costs, they increase salaries.
It is like catching up to the inflation so it has no positive effect on ending poverty.

Because income without discipline is like pouring water into a basket.

This part is correct though.

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.

That's the consumerism culture. It has forced many people into believing they need certain things and they need to live in a certain way. Like you have to have a Lambo if you are rich regardless of the fact that its such a terrible vehicle!
As long as that culture exists with this kind of mentality, no amount of money is going to help.

[Roseline492]

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

What the OP explained is true, but not entirely wrong. I disagree that earning a lot of money doesn't solve problems.
When someone earns a lot, they naturally have a lot of money. When they have a lot of money, they naturally have something they can manage well or be financially disciplined about.

You miss Op point here, is factual that money is what solved all financial problems but the problem I see op is throwing those words on are the poor behavior and the use of the money, because if you don't discover how money is navigated into giving and earning means you are going to be solving a high consumable money problem that would dry the person from not having any money by the time the only means they are earning will cease to feed them and is the truth because if you are earning through salary, is going to feed you for years but when the company will call for retirement that is when the person will no they had a poor behavior for not creating earning stability when they can.

[lornadane]

This hit close to home ngl. When I first started earning more, I thought I’d “made it” and relaxed. New gadgets, eating out more, random spends. End of the month? Same stress. Only when I started tracking expenses and setting limits did things change. Income helped, but discipline was the real fix.

[Die_empty]

That's the consumerism culture. It has forced many people into believing they need certain things and they need to live in a certain way. Like you have to have a Lambo if you are rich regardless of the fact that its such a terrible vehicle!
As long as that culture exists with this kind of mentality, no amount of money is going to help.

Social media has contributed greatly to the mindset that you have to look flamboyant to prove you are rich. The so-called celebrities and influencers are changing the mindset of young people, making them begin to seek wealth by all means so that they can be like their social media role models. Cracking down on social media by some governments also has its advantages because it shields people from inculcating some behaviors that contradict sound morals. If I have a car that serves me well, I don't need a Mercedes or a Rolls-Royce, because some people showcase them on the internet.

[Cryptmuster]

If money alone made people wealthy, salary increases would end poverty.We live in a society where people believe the solution to financial struggle is simply “more money” ,"so much money", "plenty money."But history and everyday life prove otherwise.People earn more,yet their bank accounts remain empty. Why?Because income without discipline is like pouring water into a basket.

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.
True wealth is built through intentional choices: budgeting, delayed gratification, investing, and understanding money psychology. Those who stay broke after earning more didn’t upgrade their mindset,only their spending.

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

One of my acquaintances, after receiving a salary raise, the first thing he did was buy a new large TV. The funny thing is that later he told me he barely watches it because he spends most of his time at work and comes home late. I think this is how people most often behave when they get a pay raise or make a big profit, and the reason is that they lack financial education. They only think about what they want right now, and do not think about gaining knowledge in the financial field.

[Jubilee58]

The only thing that sustains money and make you financially stable is investment. One can be earning high salary but without financial discipline, thesame person can go broke. Sometimes you see someone telling you a story of how he or she was doing well in the past, but today he is broke. Money is like a child under the care of parents , the child undergoes training as he grows. If you don't care for money don't expect it to grow or stay with you. Another thing that can make a well to do somebody broke is luxury. If you want to grow financially, avoid luxurious life style, it can drain your pocket and make you look like a nobody.

Financial discipline is very essential, cultivating it will safe you from facing financial difficulty and give an individual financial stability. When trying to gain financial stability, their are things you have to forbid. Avoid flashy life style, don't compare yourself with others, remain focus as you pursue your financial goal and remain cautious even as you spend money.

[Rruchi man]

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.

It is majorly for the reason that when income increases, so many persons are quick to improve their lifestyle and accumulate a lot of liabilities. This is why many persons even become indebted after receiving a huge amount of money.

More money may not only make you broke but may also put you in debt without financial knowledge. Financial knowledge and discipline, unfortunately, are not emphasized in schools as a way to wealth; the focus is usually only on you making money. When some people get this money that has been emphasized, they don't know exactly how to manage it and multiply it, so their financial situation doesn't change and can even become worse from debt.

[armanda90]

You must remember well, to make good money management firstly you have much money and its nothing without have money how possibility to set up good money management. Purely I am not agree with your opinion although many people after having much money always spent out for something not useful buying new mobile phone, new car and forgetting to invest of their money get grow up in the future.
Sometime if any one come from poor people and suddenly become rich most of them get failure due lack education about money management, It once happened in my neighborhood, when a village received compensation for their land with a fantastic value, but the money they received was only used to buy luxury cars without thinking about investment at all. After only a few years, many of them had to sell the cars they had bought because the money was spent on unproductive things.

[rachael9385]

If money alone made people wealthy, salary increases would end poverty.We live in a society where people believe the solution to financial struggle is simply “more money” ,"so much money", "plenty money."But history and everyday life prove otherwise.People earn more,yet their bank accounts remain empty. Why?Because income without discipline is like pouring water into a basket.

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.
True wealth is built through intentional choices: budgeting, delayed gratification, investing, and understanding money psychology. Those who stay broke after earning more didn’t upgrade their mindset,only their spending.

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

This is nothing but facts, Money doesn't fix anything if your mindset is poor, there's a reason why they said poverty is a mindest and not the absence of physical currency, you can hand over millions to someone that has a poor mindset and the person would end up going back to square one. The problem is not about earning a higher amount it's about building discipline and understanding financial management.

[Spaceman1000$]

Your absolutely spot on in your analysis, the more money you make, the more you should be disciplined with your spending, because the urge of feeling like somebody that have arrived set in, things that ordinarily wouldn't catch your attention will begin to attract you. So once you've started earning higher, you just need to stick to a financial plan that you will follow strictly, it's not as easy as it sounds but financial success requires financial discipline. Successful companies that have been built over the years have a track record on how expenditures are made, they don't go about spending indiscriminately, same thing applies for financially successful individuals too.

[Orpichukwu]

Sometimes it's the money that's not sufficient; other times it's the person that doesn't know how to manage. Two people can be earning equal salaries and have the same family size, and one will be able to save while the next person will be in debt.

It's all about management and reducing unnecessary expenses which could lead to cash wastage. If one can learn how to manage, increasing earnings will help them build generational wealth.

[Felicity_Tide]

~snip.

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.

You're very right OP, and that's why it doesn't really apply to everyone because there are still people in our society that are a complete opposite. But sticking to the discussion, I think this habit will continue to remain a problem because a lot of people don't even know that it is a problem. Of course, it is natural to make an adjustment especially when things are going smoothly financial wise, but if proper caution is not taken, we might end up getting too comfortable, thereby leaving our financial status in the same state as where we used to be years back.

Financial growth is very important. Inability to control unnecessary spending and flashy lifestyle often kick a lot of people out from paying attention to how well they're making progress financially. A lot of people just want to fit in just because they can afford certain things at the moment, while forgetting that building wealth doesn't come from leaving a flashy lifestyle without proper plans for other things that money can be used.

[Versatile_choice]

This is nothing but facts, Money doesn't fix anything if your mindset is poor, there's a reason why they said poverty is a mindest and not the absence of physical currency, you can hand over millions to someone that has a poor mindset and the person would end up going back to square one. The problem is not about earning a higher amount it's about building discipline and understanding financial management.

You're right once you have a poor mindset even if you have millons of $$$ in your bank account it can't even change your life because instead of to invest they will be thinking about going to boutique or one of the most popular hotel in town. Having a poor mindset is not far from this things I just said here, anyone you see spending in luxury or moving from one Lodge or the other when he does not have a business that is running  has a poor mindset. And surely it is not about earning a higher amount because most of the people who are earning a decent amount in thier job does not have any business/ Investment anywhere, so knowing how to spend our money is very important and also how to manage them.

[Fortify]

If money alone made people wealthy, salary increases would end poverty.We live in a society where people believe the solution to financial struggle is simply “more money” ,"so much money", "plenty money."But history and everyday life prove otherwise.People earn more,yet their bank accounts remain empty. Why?Because income without discipline is like pouring water into a basket.

When money increases, lifestyle often increases faster too,new phones, bigger houses, more outings, louder status symbols, irrelevant expenses Instead of investment starts rising.Instead of wealth growing, expenses grow muscles.The problem isn’t income;it’s habits.
True wealth is built through intentional choices: budgeting, delayed gratification, investing, and understanding money psychology. Those who stay broke after earning more didn’t upgrade their mindset,only their spending.

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

It's very true that some people, regardless of how much money they are able to bring in, can spend it at an equal rate. You have to learn to live below your means if you want to start building that buffer that is going to give you freedom later on. It basically comes down to having basic self control around your spending and learning that there is not an infinite pit of money but you have to prioritize certain things in your budget. Any average earner who is relatively stable will understand that this is required, however there are some people that go their whole lives not learning the value of money for different reasons, but they always come unstuck in the end as reality catches up to them.

[Distinctin]

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

If you're not judicious with little, there's no way you're going to be judicious when you're blessed with more. Financial prodense is neccesary right from the little you have to tye time when you are blessed with more.

If you're earning $200 a month and spends as much as $50 on your wants that are not part of your basic needs, when the income grows, there's a high tendency that you're going to spend too much also. If you're someone that's financially disciplined, your little can give you the peace of mind that someone else that's earning much but lack financial discipline can't get.

When you insist to spend on your wants when you have a little income, when your income grows, you will also prioritize to spend on it a bigger amount, but the amount of your need does not change or increase at all. This is the reason why a lot of people do not progress financially, because they focus more on spending on unnecessary things rather than saving those amount so it can be benefit in the future.

Financial discipline is utmost important. Do not focus on spending more because you are earning more, but focus on saving and spend less, prioritize needs over wants.

[Finestream]

Therefore,More money doesn’t fix poor money behavior. It exposes it.More money fixes cash-flow problems.It does not fix character, habits, or thinking problems.Fix the person,the habits then the money follows and stays!

There is common idea that people's appearance or lifestyle should reflect thier financial status. This mindset has made people to increase their expenses immediately their income increases. Recently, a friend told me that I was living below my means and I was surprised since I was not lacking anything. The government just increased our salary and he expected me to change my car, clothing and other things. But he failed to understand that inflation has has risen and the cost of living is also increasing.  Increasing my expenses with the high rate of inflation is like living above my means. More money don't fixed financial problems if inflation is high. So it is important to maintain financial prudence at all times.

People align the need to spend more when there is more income as well. This kind of mindset will not thrive in the long run, but may end up struggling financially instead when the amount of expenses becomes bigger than the expected amount of income. With this, inflation becomes more felt because one is spending more particularly on not so important things when all they have to prioritize is to buy those needs over those expensive wants.

Earning more does not create financial edge, but it puts the people into a bigger financial problem unconsciously.

[robelneo]

If money alone made people wealthy, salary increases would end poverty.We live in a society where people believe the solution to financial struggle is simply “more money” ,"so much money", "plenty money."But history and everyday life prove otherwise.People earn more,yet their bank accounts remain empty. Why?Because income without discipline is like pouring water into a basket.

I agree that when people have a lot of money coming in, they realize what they want and want it right away. So they always end up with nothing because of how they spend, it's an endless cycle for them, and they always end up where they started.
The only way to get out of working, earning, and becoming zero balance is to reflect on how we spend our money through wise budgeting. You can't have financial independence if you cannot moderate your greed.

[slapper]

The only thing that sustains money and make you financially stable is investment. One can be earning high salary but without financial discipline, thesame person can go broke. Sometimes you see someone telling you a story of how he or she was doing well in the past, but today he is broke. Money is like a child under the care of parents , the child undergoes training as he grows. If you don't care for money don't expect it to grow or stay with you. Another thing that can make a well to do somebody broke is luxury. If you want to grow financially, avoid luxurious life style, it can drain your pocket and make you look like a nobody.

Financial discipline is very essential, cultivating it will safe you from facing financial difficulty and give an individual financial stability. When trying to gain financial stability, their are things you have to forbid. Avoid flashy life style, don't compare yourself with others, remain focus as you pursue your financial goal and remain cautious even as you spend money.

However, it is not the way human behavior functions. The individuals lacking the financial discipline are normally acting in a rational way to their situation. When you are brought up poor you actually grow with a brain rewired to focus on the here and now as delayed gratification has been a sham all along. Advise a person who is broke that it will be worth it to save over thirty years, when they observe their own parents do all the right stuff and see the financial sector wiped out by a hospital bill or even a housing meltdown. Why would they believe you?

Lifestyle inflation is real. However the real sucker is that housing prices have risen faster than wages over the decades, healthcare is an economic roulette wheel, and education debt puts people in debt of a dollar before they have made a dime. All this structure presupposes that the game is even and the only thing that is variable is your own discipline. We have created an economy in which the bottom 50 percent has virtually zero wealth but productivity continues to rise. But where should their discipline bring them? You can plan everything and plan very well but then circumstances take a toll of you, and you are ruined. The mathematics no longer works to the benefit of the majority, and passing off the real issue as one of personal virtue rather than a structural order is, to be honest, simply a way of getting the real problem off the hook.