Are We Working Harder Just to Maintain the Same Lifestyle?

[kingstep]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

[Hypnotizer]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

Increase in income doesn’t equal a good measure of financial progress rather the increase in what your income can purchase does.

Assuming you got a raise from $1000 to $3000 and inflation has increased the cost of living such that your increased income would not be able to purchase 3x or 2x what you can purchase when you earn $1000 then that’s definitely not a financial progress. Your income just matched your new economic reality and you’re still going to maintain the same standards of living.

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

You’re not getting richer, and that’s why “you don’t get rich working for someone”, you’re only getting more money to maintain the same economy reality because of inflation. Most employees don’t get richer because of their wages or salaries, though they’re some small fraction that get richer earning more salary but the vast majority don’t.

[Dr.Bitcoin_Strange]

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

So, what is worse? Is having more income not better than earning less in a situation where the cost of living still continues to increase? Some people still doesn't experience this increase in their salary but yet they manage to survive and still maintain a lifestyle at their level, so if the person later have an increase in pay, then he or she should be able to save up and invest.  You don't just automatically become rich because your salary has been increased from x to z but you become rich when you have other sources of income that you have created for yourself  and to create those other sources, it's either you are using some percentage of your salary to invest in something or build something that will earn you more money.

[Aanuoluwatofunmi]

What is the benefit of working harder when we aren't improving the way we've lived our lives over the years? Any effort that doesn't show a significant difference is just wasted effort.

We have to keep moving in life and keep changing for the better. The more we are interested in improving in any aspect, the more we do; the better the result should be for us. You should also learn to improve more to increase our delivery capacity because the economy is not stagnant in the same position for a long time without change.

[Bd officer]

It begs the question, is increased income really a good measure of financial progress?
?

No, income growth alone is not a good measure of financial progress. Rather, you have to reduce expenses, as it is seen that some people's expenses also increase as their income increases. Moreover, if inflation increases by 15% and your salary increases by 12%, then even if your salary increases, your income will decrease further. So if your income increases, it will not be enough or you will not be able to progress financially. In this case, you have to reduce the amount of expenses along with the increase in income, then you will be able to progress financially.

[BlackHatCoiner]

Congrats for discovering inflation!

Real progress is measured in what your money buys, not the number on your paycheck. If $1000 today buys what $500 bought three years ago, you didn't get a "raise", you got a participation trophy from your central bank.

Most people get a raise and immediately "upgrade" their rent, phone and takeout habits, then wonder why they're still broke at a higher resolution. Lifestyle creep is real.

[bangjoe]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

of course not, broadly speaking, if income and expenditure do not have an increasing gap, it means that we will not increase our wealth because indeed we if we want to get richer with better financial conditions, of course, increasing income and also relatively stagnant expenses, that's a much better formula.
If it is the case that your income continues to grow, as long as it is greater than the expenses that increase, you will get a position that can be much better even though the expenses increase.
Every month there needs to be an increase or net surplus of the remaining net money, from the calculation of income minus expenses, when the money is left over or what we are used to with discretionary income.

It's better to reduce your lifestyle, or at least eliminate unnecessary expenses.

[buwaytress]

Spending power or purchasing power. Never on the basis of pure income. And then, using that in a comparison of percentiles of fixed/expected costs will tell you a better picture of financial progress.

e.g., My first white collar permanent job: I spent 25% of my my nett monthly income (which was about 3 times minimum wage) in my country of origin for rent on a modest shared room out of the city, but that tradeoff also required I spend 10% of that on transport. Where I live now, a reasonable room of the same size to yourself within 10 minutes walk of the heart of the city? <20% of minimum wage. Practically zero transport cost and commute.

I think countries that manage to keep purchasing power steady have got it right. I live, by the way, in a place where people complain a lot about not affording homes but I struggle to understand how people can't buy their own homes in their 20s when minimum wage for a single person more than pays a good mortgage that allows ownership in 20 years or fewer. I only could get to my level coming here and starting owing a huge part to Bitcoin in 20/21.

[AmaGold70]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

Earning more money has no relationship with becoming financially stable, and with the present economic situation in our various countries when salary is being increased, it is never enough to take your full responsibility especially those in the government sector. However to gain financial stability, it is necessary you have several streams of income, and don't depend on salary alone. As a man, many responsibilities are confronting you, ranging from paying bill, to feeding, training children, and extending helping hand to people around you, so depending on one source of income will drain you financially. Some of us are working where the salary is not even enough to take care of ourselves, and family, sometimes increment of salary hardly come, but combining such work with business can help you so much , and enable you to gain financial relief.

[Kelward]

Income earners are seriously struggling to survive, I don't know the actual reality in many developed countries but in developing countries like mine the reality is that salary increases doesn't add much value to workers because the cost of living keeps increasing especially in the big cities. If your salary remains the same within three years it means that your standard of living will surely depreciate because the prices of goods and services have skyrocketed. If your salary doesn't increase more than the rate of the increases of commodities in the market it means that your standard of living cannot improve despite your increased in salary.

This is the reason why there are too many substandard products in the market because a lot of people cannot afford the cost of original products. It is also the reason why corruption is everywhere, people are desperate to make more money to better their lives and will steal and cheat to make enough money to afford lavish lifestyles.

[5W-KILO]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

$500 to $1000 will make a big change for me, that's like getting paid in double of your normally salary, ask any passerby this question and they will tell you how happy they would be if this happens to them.

Someone who already knew how to manage himself or herself with $500 every month just one day start to get paid in double, it will make massive difference trust me.

Someone who wasn't able to safe money aside for investment or savings will be able to do so because they have already mastered the act of managing that $500 already, so the extra will be a changer.

[Floczy]

It begs the question, is increased income really a good measure of financial progress?

Yes it is, but in the present today it could be more defined as increase in income depending on how significant your income is. With inflation increasing your income has to be very high to make a difference.
With the how things are now one will have to get more than 2 jobs and more to make a difference between your past income and increase in income

[Ndabagi01]

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

Before there is an increment in salary, for both government and private workers, they is usually a check of the living conditions of the people. If inflation has grown than before, there is a high chance that will be the reason for the salary increment.

If you were able to afford 3 square meal while on $500 monthly and you can’t afford it again, then an increment to any amount on your salary will in accordance as to you still being able to afford that three square mean and living your life in normal conditions as it is before.

If you want to live a more comfortable lifestyle, you’ll need to move away from working for people and work for your own money. Investing in other businesses to earn for yourself is better off for you than relying on the people you’re working for.

[yhiaali3]

You don't need an economist or an academic professor to tell you that if your income continues to increase while the cost of your needs increases, you are simply earning more money to maintain the same lifestyle.

Unfortunately, this is what happens in various countries even developed ones because material prices are constantly increasing with continued inflation and economic problems, so you think you are earning more, but in reality you are stuck in the same place and will not advance one step.

[Royal Cap]

Earning more money and being financially comfortable are two different situations in the present day global economy. That you are earning more than your previous salary doesn't always mean you're financially better off.

The real issue here is that nominal income and real income are not the same thing.  Even if your salary increases by 20 percent, if the cost of living increases even more at the same time, you may not actually be able to buy more than before.

It begs the question, is increased income really a good measure of financial progress?

I would say along with increasing income, it is also important to see how much savings are being made, whether debt is decreasing, and how much living can be achieved with the same amount of money compared to before. For example, if you earn $1,000 and have nothing at the end of the month, and you earn $800 and save $200 regularly, then the second situation may be much more stable.

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

If lifestyle expenses also keep increasing at the same rate after income increases, then even if income increases, financial freedom does not increase much.  And real progress is to increase your net worth and purchasing power by controlling your expenses while increasing your income.

[Sim_card]

This is what the government has put us into, a slave to fiat system whereby, you keep on working and inflation eats up the value of your money. Just imagine that your income didn't increase, it means that you will go below your standard of living. It's better that my income increases and I didn't have any extra from my increased income but can still meet up with my standard of living than not being able to meet up with it. This is the main reason why you need to try your possible best to invest the little extra that is left into bitcoin after taking care of all your needs.

[Creeper0]

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

If the income level and the price level increase at the same rate, you are basically in the same position. Nothing is changing and nothing is improving, but you are stuck in the inflation trap.
If your income level and expenditure level are in the same ratio, but the standard of living increases, then you may think that some change has occurred and some improvement has occurred. But this is not happening at the present time. Income increases and the market price level also increases, you are stuck in the same position to cope with the situation.

When your income increases but you are getting the opportunity to improve your standard of living at the same cost, then you can consider that some changes are happening in the economy or an opportunity has arisen to improve your life. Because then you will have an economy where you will have the opportunity to save or invest and also have the opportunity to improve your standard of living.

[Cryptomultiplier]

Earning more money and being financially comfortable are two different situation in the present day global economy. that you are earning more than your previous salary doesn't always mean you're financially better off.

In reality, Someone can move from earning $500 to $1,000 a month and still feel like nothing really changed. the reason in most cases is that Rent also increases, food costs more, transportation gets more expensive, and suddenly that extra $500 doesn't feel like much anymore.

It begs the question, is increased income really a good measure of financial progress?

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

Earning more money doesn't guarantee wealth or make one rich. Although on paper, the networth of the individual may have increased, still, to determine real financial progress, it depends on what you save, what is invested, and how debt is controlled.

So if one is earning more money than before, they have to maintain the old lifestyle for a while and not just jump to rising expenses because they want a better life or feel among.

[Charleslie]

Sometimes, it feels like we are working harder than ever, but our lives are not really improving or our life remains the same.
You get a job, you earn money, you pay your bills, you buy food, you take care of responsibilities, and before you know it, the money you worked hard for is gone,  so far then the next month you  starts and you have to work all over again.
The problem is that as income increases, expenses can increase too. Things that were once affordable become more expensive. Food costs more.  School fees, healthcare,  and other daily needs continue to take money from our pockets.
So, you may be earning more money than you did a few years ago, but if your expenses have also increased, you may not actually feel richer.
 But working hard alone may not be enough. We also need to think about how we  can manage our money, how we save, how we invest, and how we build skills that can increase our earning power.

[ColdLava40]

If your income keeps increasing but the things you need also keeps becoming more expensive, are you getting richer, or you're simply earning more money to maintain the same lifestyle?

Have you heard of then saying, the more money you make, the more your expenses?

In this case if you live in a country where inflation is on a rise, an increase in your earnings will not be enough to save you from the steady rise of commodity and cost of living.

You simply need to find more source of income to cover up for your many other expenses and also for savings which might still not be enough.

Increased income won't do much but multiple source of income will be the best alternative in this situation. As long as the things you need continues to increase your income will never be enough.