Have you ever told yourself something like this, “Once I make this last car payment, then I’ll have more money and then my financial situation will change” or “After I get this next raise, then I’ll be better able to make ends meet”? I suspect you have, at one time or another in one way or another.
Let’s walk through an illustrative example. Think back to what you were making five years ago. Fast forward two years from there and think about what you were making three years ago. The majority of us experienced some kind of increase, whether annual raises or promotions, in that two-year timeframe. Let me ask you, did you have fewer money problems as a result of that financial increase? Probably not.
In fact, many of us may have been worse off as our income increased. The reason is simple. It does not matter how much you make. What matters is how much money you keep. Your expenses have to be less than your income or you will always be upside down. If you are not committed to living within your means now, that commitment doesn’t come when you have more money.
In my opinion, blaming your financial problems solely on a lack of money can be an excuse for taking personal responsibility to live within your means.
Your turn: Do you agree or disagree with me?
About Carrie Rocha
Excellent post! This is something that I’ve been struggling with lately. I have had the great fortune, by a job change and a promotion, to be making 65% more than that I was three years ago. (Holy cow, I just calculated that, I didn’t think it was that much!) I’m doing pretty good with not increasing our budget too much to compensate, but it’s very hard to look at that and not think that I can just spend that extra money every month instead of putting it into savings or paying off debt faster.
You can live a comfortable life on nearly any income if you adjust your spending accordingly. But once you’re used to a certain type of lifestyle, it’s very difficult to change.
I totally agree. My sister always says, “It’s not how much you make, it is how much you spend,” which I think is really wise. I know it is really easy for me when money is less tight, to want to go out to eat more, or get that shirt at Target that I couldn’t afford before. Then I am always like, “Why aren’t we putting more in savings?” Keeping that mindset of not increasing the budget when income goes up is hard, but it is really worth it. It is something I am still learning.
I agree..I am finally realizing that now as I just finished paying some bills this month. Thank you for showing me how to save money>>
Great post Carrie! Thanks for sharing your wisdom. Ed & I are both finally committed to living within our means and getting out of debt. Looking forward to sharing our testimony!!!
I completely agree. My mother in law (who is retired but didn’t bother saving up for retirement) is ALWAYS complaining about how little income she has, when her real problem is her spending. She inherited $50,000 when her parents passed away, and it was just 3 or 4 years later that it was all gone PLUS she was several thousands in credit card debt. She could have invested it and had at least SOMETHING for retirement, but she spent it. She eventually declared bankruptcy. She blames social security. She has an entitlement attitude.
Such a good point. I think that applies to once you do start saving money on your grocery bill. Instead of thinking you can buy even more food, don’t buy more than you need. Use your savings to pay off debt or put into savings. You’ll be paying off debt faster and living more comfortably.
Excellent post! Perfect argument for Total Money Makeover. I love Dave Ramsey!
I know I need to learn contentment- it’s always been about the bigger & better, and yet when we get it, it’s not enough. Thank you Carrie- My hubby and I are just starting Financial Peace University by Dave Ramsey because we are done with this lifestyle!
Once again – you are RIGHT ON THE MONEY, Carrie! It’s far too easy to blame the world around you than it is to accept that maybe the reason you don’t have any money is YOU.
GREAT POST!
I just read this today. I agree with you. Before I quit my job to stay home with the kids, I figured out how much money we had coming in and how much we spent on monthly expenses. Instead of making myself put money aside, I had my direct deposit split so that the extra money went directly into my savings. Never seeing it was like not having it. I can say that living off one income is a little more difficult, but I have always found myself to be thrifty, so we manage to stay a float.