Are We Working Harder Just to Maintain the Same Lifestyle?

[bhadz]

is increased income really a good measure of financial progress?

It is because it gives you more room to improve your financial situation. So, that you can progress well financially. But not all who are high earning individuals have the financial skills to manage it well. It takes them some experiences before they change their bad financial habits.

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 it can sustain your lifestyle without having any financial constraints, then that cost of living is not a problem to you. And that's why if you want to get richer, you need to do something about it and do some sacrifices that can give you more space to have capital to invest into assets.

[Franklyn-wood]

Salary increment is just another subtle way of stealing away the workers sense of reasoning because when you start complaining about economic hardship, they give you a pay rise with a proportional rise in inflation. That's how to know that it's not every additional income that easily makes an easier lifestyle. We work harder in more cases after realising that our income is no longer enough to sustain our responsibilities. When we succeed in getting an additional source of income, we already know that we're only chasing to meet an already difficult lifestyle which is why several increments in our income doesn't really cause any much savings or luxury lifestyle because you already have inflation to deal with.

Working hard doesn't depend on the steam of income, because some work little and lives a more Fulfiled life that those who feels that work very hard to make. The pressure some people put on themselves are too much mostly when they are trying to compete with others without considering there source of income. The only way we can work hard and get results is when we are discipline and focused.
Indiscipline can make all the effort that we invest become useless , if the resources are not managed as it should.
It hard to succeed with only salary without a side hustle or income to back it up, mostly when the salary small to compared to the expenses incurred on daily basis.

[Dreadboost]

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

Yes! With increased income, there is more to save and more to invest, whereas with the previous income there isn't much that can be saved after covering monthly expenses. Increased income is important, but for one to be at the level where they can get wealthy, they have to be earning an amount where 1/4 of the income is enough to cover their basic needs and still have some discretionary income left. The other 3/4 is to be used to upskill, start a business, or reinvest back into what gives them their income.

[fruktik]

You don’t have to live an ascetic lifestyle. You can live normally without spending your entire paycheck. I know people who do this, I used to do it myself back when things were more stable and I had far fewer obligations, financial ones included. People do this when they have a major, overarching goal, like saving for a home. And the thought that each day brings you closer to that goal gives you the strength to cut back on certain things, knowing that in the end you’ll get something you never could have achieved by spending down to zero. Nowadays, though, it’s exceptionally hard to do because money is losing its value at such an insane pace.

I have no desire to live an ascetic life, yet I’ve been forced into it against my will. Right now, every penny counts; I even have to cut back on food. I’ve been in this survival mode for years. Inflation has accelerated so sharply that saving money is becoming increasingly difficult, and on top of that, new tax laws have been passed to levy taxes on interest earned from bank deposits. That’s yet another blow below the belt.

I try not to lose heart and to keep my head above water, but it gets harder with each passing day. You get worn out by this constant chase for money—it’s utterly exhausting, both physically and mentally.

[Abiky]

Actually, this is what’s called inflation. It's when our income goes up but it doesn’t really reflect any real financial progress for us. All of it is because of inflation eating away at our money, so even if our salary goes from $500 to $1,000, it doesn’t change anything when the rent, food and transportation costs go up. In other words it’s really just enough to maintain the same standard of living not to improve it.

So that's why when salaries go up what actually happens isn't an increase in wealth, but just an adjustment to higher living costs. So, to really feel the impact of a raise we need to focus on managing expenses, long term investments and continuously improving our skills which is much more effective than just chasing a salary number that's constantly being eaten away by inflation.

You're talking about purchasing power. Something most people don't keep in mind when they're paid for by their employers. The public should focus on building wealth to beat down inflation. Not earning more money by having two jobs or getting a raise. Building wealth starts by saving and investing into profitable businesses or assets that are scarce by design. Things like real estate, Gold, Bitcoin, and US treasury bonds help you build true wealth over the long-term.

Without financial discipline, people will continue to live paycheck to paycheck. Like I've stated before, we should work smarter, not harder. Hopefully, people realize this before it's too late.

[PERtua]

The distinction between inflation and lifestyle inflation is something that needs to be taken into account. With an increase in salary. Individuals can choose to use the extra money for a new car. New furniture or an even larger house. This makes it more difficult to save. A good indicator of improvement is an increase in buying power and saving, after your expenses. Rather than an increase in salary.

[drangos]

The important part of this is to look at what you save. Rather than at the increase in your salary  after paying for your bills. Income may be equal for two individuals, but they can have vastly different financial situations depending on rent payments. Family needs and expenses. While it may not immediately help you to build wealth. A pay raise can give you a sense of relief. The key is if your finances get better over time  more money saved. Less reliance on the next paycheck.

[9ja Amaka]

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.

I disagree with you that it's because of the high cost of living that makes it looks as if salary increase doesn't change anything. Humans are just insatiable, that's where the problem is. People always say, if a start earning so so amount of money i will become comfortable but what happens when they start earning their desired amount? Their taste increases, they become extravagant and forget that they are just coming out of a lower salary where they still managed with it. Why can't they at least wait for some time and save some money from the extra that has added before they start to increase their standard of living. Everything that is going wrong in the world is being originated by humans so they are true cause of their problems in reality.

An increase in salary is the first step to level up financially. Humans don't just know how to work with the available resources to become wealthy. The majority feel it's when the salary is extremely high that they will progress financially. To be frank, financial knowledge is very important. Even with the little salary that one is earning, it is enough to step climbing stone for financial upliftment. An increase in salary is a big boost for someone with financial knowledge. How they use that opportunity will shock the other employees.

The majority are too quick to set higher standards of need once they have a salary increase. Meanwhile, if they use the same standard, they will have more discretionary income to do with their finances.

[Zaka1221]

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?

Financial progress is not based on higher income. The most important thing is purchasing power, that is, how much will remain after all the essential expenses. If someone is earning well but food, transportation, rent and all the other necessities that he has to pay for have risen significantly, then his financial position has not improved much. The better thing is that investment, savings and financial security grow along with the income. If you are earning more, that does not simply allow you to maintain the same lifestyle and high costs simply. The better approach is to maintain your lifestyle while building assets and increasing income.

[MorganaX]

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?

Honestly, at this rate, it's not even a maintaining a lifestyle, more about maintaining survival and working harder is the only way up. I think this stuff happened to me recently where I thought for a second that I had a bump in my pay, "thought for a second" because after that first excitement, when I calculated the list of needs, my heart was broken because the money only increased to meet up the needs not to accommodate wants

[Yeesha]

Financial progress is not based on higher income. The most important thing is purchasing power, that is, how much will remain after all the essential expenses. If someone is earning well but food, transportation, rent and all the other necessities that he has to pay for have risen significantly, then his financial position has not improved much. The better thing is that investment, savings and financial security grow along with the income. If you are earning more, that does not simply allow you to maintain the same lifestyle and high costs simply. The better approach is to maintain your lifestyle while building assets and increasing income.

Off course it is not. You're absolutely right, in as far as your salary is not enough to cover up your expenses, then you're yet to obtain financial stability. And in order to maintain your financial progress you must have appropriate manner of spending. Financial management can only be possible through accurate, effective and reliable budgeting. Investment and saving will not be possible if you are not financially stable. Investment is only possible if you have discrestionary income.

[savetheFORUM]

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?

Yes, increased income is a good measure of financial progress but only as long as the expenses remain the same. If expenses are increasing, the income would never be sufficient. One thing I have observed is that if salary hikes, one starts planning to add more luxuries in their life which eventually needs high maintenance. They feel they can afford to keep these luxuries but they mostly ignore the fact that their salary is never going to be sufficient. For me, salary alone has never worked. I prefer doing some side gig in order to afford the luxuries and would use salary just for basic necessities.

If we use salary just for basic necessities, even a slight 5% hike might seem a lot and we should be able to save some for the future. But if we keep spending without having a second thought, we can never really achieve financial freedom with the current job.

[Davidvictorson]

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?

Ideally, when your income increases, you naturally have an increased needs and want to fulfill. I remembered having an argument with someone that was in the case, but they did prove me wrong and overtime I have seen how flawed my thinking was. On the other hand as income increases so does other items in the economy increases. This one is out of your control, but it’s just one of those things that happens. So you’re not actually trying to maintain a lifestyle I would say the lifestyle just catches up with you.

[welovebit]

Yes, increased income is a good measure of financial progress but only as long as the expenses remain the same. If expenses are increasing, the income would never be sufficient. One thing I have observed is that if salary hikes, one starts planning to add more luxuries in their life which eventually needs high maintenance. They feel they can afford to keep these luxuries but they mostly ignore the fact that their salary is never going to be sufficient. For me, salary alone has never worked. I prefer doing some side gig in order to afford the luxuries and would use salary just for basic necessities.

If we use salary just for basic necessities, even a slight 5% hike might seem a lot and we should be able to save some for the future. But if we keep spending without having a second thought, we can never really achieve financial freedom with the current job.

Emotionless strategy is needed for maintaining this difference, but mostly people do not go far beyond, and at the end they are having consequences that have never been favorable for them. Inflation always works just because of these increasing luxuries, meaning an increase in income without doing this, no one can keep things balanced.
Peoples those understand and have chance of doing extra they always keep their system on good level because they never allow themselves to have more luxuries without having good increase in income its done damage and its also never have good end financial freedom is currently one of the hot topic but its also needs enough sources which are now limited and things are getting worst just because of this.

[Abdulzuruku01]

Of course many times earning more money may not make you rich due to inflation or the system you find yourself in.  Even though it may not be easy, if you are in a situation where you are earning three to four times what you consume every week or month, that will definitely make you progress financially.  Another measure of financial progress is changing from an expensive lifestyle. Living and spending only on things that are necessary for survival can help you save money and boost your daily income.

[Don Pedro Dinero]

The better thing is that investment, savings and financial security grow along with the income. If you are earning more, that does not simply allow you to maintain the same lifestyle and high costs simply. The better approach is to maintain your lifestyle while building assets and increasing income.

Here’s the thing. The problem with inflation is that it erodes the purchasing power of the working class. If you want to move out of the working class and into the middle or upper class, you have to invest in assets. I see over 90 per cent of the responses focusing on work and expenditure, not on investment. The key to beating inflation is to invest. Therefore, as you say, trying to increase your income whilst also investing and maintaining your standard of living is the key. At least until you’ve accumulated enough in investments that you can afford to upgrade your lifestyle.

[TheUltraElite]

Yeah, I think that’s the problem. Getting a higher salary doesn’t necessarily mean you’re better off if everything else gets more expensive too. Rent, food, bills… they can eat up most of the extra income pretty quickly. At some point it feels like you’re just working more to stay in the same place.

This also depends on the place where you are living. If you are in the big cities, your cost of living will be high and will be balanced by an equally high salary. Proportionally low will be the cost of living in the smaller city.

So the result becomes same, you draw your salary to complete your bills, but you still have to save money.

So whats the solution? Try to get promoted to a higher position? Move from a job to a business? Neither of these are actually reasonable methods for everyone out there. Rather what can be done is the change of lifestyle to include only the necessities and cut down all sorts of costs that are not needed.

[Altryist]

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?

If your income has doubled, from $500 to $1,000, you should feel an improvement in your financial situation. Rent is not going to increase that quickly, and although food prices do go up, they certainly don't double. So with that kind of increase in income, you should notice a difference.

Especially if you know how to manage your budget properly, you should be able to see where the rest of your money is going. And when your income increases, you should be able to save more. If you can't save anything despite earning more, then your desires and lifestyle are probably increasing along with your income, and you are starting to spend money on things you didn't spend money on before.

[serjent05]

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.

I don't understand what you are implying, reading your post, an increase in financial inflow is not good financial progress?  So tell me what is a good financial progress in personal level? 

As far as I understand, an increase in cash inflow, such as an increase in income, is very good financial progress because we are able to maintain our lifestyle and at the same time get more funds to save.  It can even elevate our way of living.

If we paired it with good financial management, we are able to level up our way of earning money.  We can save funds faster to fuel our target business,  With enough savings and funds, we can convert ourselves from being an employee to entrepreneur.  Is not that a leap?  After all, financial progress is all about securing and increasing our cash inflow, saving more money while maintaining our day to day needs.

[lombok]

Of course many times earning more money may not make you rich due to inflation or the system you find yourself in.  Even though it may not be easy, if you are in a situation where you are earning three to four times what you consume every week or month, that will definitely make you progress financially.  Another measure of financial progress is changing from an expensive lifestyle. Living and spending only on things that are necessary for survival can help you save money and boost your daily income.

It is true that earning more money is not enough for ensuring financial freedom without controlling one’s expenditures on a daily basis. It becomes necessary to keep multiple times of the income above one’s living expenses.

Getting rid of extravagant ways of consumption is important as it will safeguard one’s wealth from the erosion of purchasing power.