Earning More doesn't Fix it,Financial Discipline Does

[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.

[Berry2d]

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.

.
Yes the ability to Create opportunities is what differentiate people of the same category, a man may be poor financially but rich mentally making it easier to fight and overcome the greatest enemy of man which is fear. One thing that keeps people poor is the fear to face there challenges and find the possible means of crossing that bridge of poverty. Those that summoned courage to face that enemy are the people that appear successful and not those born with a silver spoon.

One may not have the capital required to outstand poverty but believing you can do it and pushing know matter how hard it may be is the only key to open doors

[Unknown Op]

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.

People are earning more but they are not using this money for their improvement and they are using this money for their bad habits because Many people are habitual of travelling and they are spending their most of the money in traveling. Many people want to spend their money on buying luxury cars because that is investment in the thinking of that . They should invest their money in real estate because we saw many athletes who got huge amount of money in the tournament because they sold at high price and after that they didn't invest their money and after 6 months they bankrupt because they gambled and that is reason financial wisdom is more important in life .

[WhoYouCantKill]

Yes the ability to Create opportunities is what differentiate people of the same category, a man may be poor financially but rich mentally making it easier to fight and overcome the greatest enemy of man which is fear. One thing that keeps people poor is the fear to face there challenges and find the possible means of crossing that bridge of poverty. Those that summoned courage to face that enemy are the people that appear successful and not those born with a silver spoon.

One may not have the capital required to outstand poverty but believing you can do it and pushing know matter how hard it may be is the only key to open doors

The mistake that people often make is believing that being financially free or solving life’s problems is all about how much money you’ve got stacked up or how much you earn, but they fail to understand that money stacked up without the right financial maturity and management is almost good for nothing because they’ll only end up spending those money on irrelevances and before you know it, they’re all gone. Some people end up opting for a lifestyle that they can’t be able to maintain in the next few years and that’s why you see people being rich today and in a matter of years they’re already broke…

[SOKO-DEKE]

Yes, in some ways earning more does not always carry people out of poverty. It depends on how disciplined they are with money,because the more some people earn, the more problems they create for themselves. They spend the money and never have savings.But for some people, if they can earn more, their problems will be solved, because what they are currently earning is not enough to solve the kinds of problems they have. In fact, some people even go to the extent of borrowing money before their salary to solve certain problems. It’s not that they are spending lavishly, but that what they earn cannot solve their problems.so, with this point, I believe that more money can fix things, not only discipline

[Cookdata]

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.

There is a difference between been poor as in pauper and a person who makes financial mistake. According, think people make mistakes of financial mistakes than the poverty you're are trying to explain here. There is nothing like living an extravagant lifestyle and think such can be described as poverty, that's wrong. A person who have the means can choose to do that and still leave a comfort life after, beside there is no rule that says such life is bad, it's a bad logic that is often describe as a financial mistake.

Yes, in some ways earning more does not always carry people out of poverty. It depends on how disciplined they are with money,because the more some people earn, the more problems they create for themselves. They spend the money and never have savings.But for some people, if they can earn more, their problems will be solved, because what they are currently earning is not enough to solve the kinds of problems they have. In fact, some people even go to the extent of borrowing money before their salary to solve certain problems. It’s not that they are spending lavishly, but that what they earn cannot solve their problems.so, with this point, I believe that more money can fix things, not only discipline

You can be discipline all you can, you can't get rich by savings unless you work in a multi million business or companies. People that does research and development on oil and gas are one of the best people that make money from my experience, know couple of researchers that made good money but even with that development, they later invested the money made from savings to business and investment. You can't work forever by depending on paycheck, the day you stop working is the day your financial bills start to pile up while your savings dry up.

[Fredomago]

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.

Still better than the previous financial state you have, I mean you got the money to repay without any problem where to get it, that's something that you acheive and if you continue to produce more extra money and still have same mentality in terms of not changing your lifestyle and consider to save up that's going to help a lot, and similar to your last statement, you can't bring the past back but you can improve if you focus yourself in producing valuable investments to create new source to earn.

[Smartvirus]

You can be discipline all you can, you can't get rich by savings unless you work in a multi million business or companies. People that does research and development on oil and gas are one of the best people that make money from my experience, know couple of researchers that made good money but even with that development, they later invested the money made from savings to business and investment. You can't work forever by depending on paycheck, the day you stop working is the day your financial bills start to pile up while your savings dry up.

Savings doesn’t make anyone rich, in fact, it does the very opposite which is making you poor and the more poor. Saved money are useful as securities, to insure certain risk that might be incurred in the later future and even could serve as capital for some gainful investment but in the meantime, it adds nothing to your wealth.  Money is supposed to bring returns and not just sit there in some account.
Should it get hit by inflation, your story wouldn’t be nice. Best to invest than have it saved away.

[gibrab16]

You can be discipline all you can, you can't get rich by savings unless you work in a multi million business or companies. People that does research and development on oil and gas are one of the best people that make money from my experience, know couple of researchers that made good money but even with that development, they later invested the money made from savings to business and investment. You can't work forever by depending on paycheck, the day you stop working is the day your financial bills start to pile up while your savings dry up.

Savings doesn’t make anyone rich, in fact, it does the very opposite which is making you poor and the more poor. Saved money are useful as securities, to insure certain risk that might be incurred in the later future and even could serve as capital for some gainful investment but in the meantime, it adds nothing to your wealth.  Money is supposed to bring returns and not just sit there in some account.
Should it get hit by inflation, your story wouldn’t be nice. Best to invest than have it saved away.

I partly agree, but I think savings and investing play different roles. Savings alone won’t make anyone rich, that’s true — money just sitting in an account loses value over time because of inflation.
But savings are still important as a safety net and as capital for future investments. The real mistake is stopping at just saving and never putting that money to work. Money should eventually be invested in assets that generate returns, otherwise it slowly gets eaten away.
So yeah, saving without investing won’t grow wealth — but saving to invest is still a smart move.

[MarjorieZimmermanGinger]

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!

Most of us think that making more money can be a solution, but in reality, not having well-managed financial discipline can actually create problems. How many people fail to manage their finances in life and instead spend their money on unnecessary things, such as fulfilling a lifestyle to appear luxurious in the eyes of others. In cases like this, perhaps what needs to be improved is the lifestyle, or more specifically, the person who needs to change so they better understand the habit of living according to their usual standards, not the opposite. If they are able to make more money, their life changes and they lack a clear plan for their finances when the money runs out they don't have a good plan for future financial growth.

[bubilas]

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!

The fact is, there are so many manufacturers of goods and services now charging exorbitant prices for their products and services. While they're all top-quality, the price isn't commensurate with the quality. These sellers know that the rich have a lot of money, so they can charge exorbitant prices, because no one can make better products and services than them. And the rich are willing to pay for this to stroke their egos and, of course, to show off on Instagram. This is the essence of those rich people who love to live this way, not realizing that it quickly drains their savings and that it would be better to live with self-denial and self-control in their momentary desires.