Many of us feel like money is the answer to all of our problems and it can certainly seem that way on the surface… But when you dig a little deeper, you will often find that it is not the case.
After helping countless people get on top of their finances, I started to notice a pattern. People would come to me asking for ways to earn more money so they could get out of their financial rut.
And in most cases, after taking a further look at their situation, I would almost always find that it wasn’t the amount of money they were earning that was the issue.
There would usually be a host of other factors that were causing them to be in a financial jam. And the solution wasn’t to earn more money.
If you have found that you experience the same financial issues, no matter how much you earn, or you think earning more money will solve your financial problems, then I would suggest reading on to make sure there isn’t another underlying issue you need to take care of first.
That’s not to say seeking out a higher income is a bad thing, in fact, we recommend that everybody looks into doing this. It is just about being aware of the real root of your financial problems.
#1 - Bad habits don’t disappear with a higher salary
I have met so many people that earn way above an average salary… But for some reason, many of them had the same financial issues (if not worse) than somebody who earned half their salary.
I had to ask myself why.
You see, the thing is… If you have bad money habits, they will follow you regardless of your salary being 20k or 100k. If you have a habit of choosing to live in properties that cost nearly your entire salary in overheads, you will just keep encountering the same problems.
Think about how many celebrities have declared bankruptcy
Your habits will just be amplified on a bigger scale. Understanding your money habits and refining them for the better is what you would need to address in the long run to really remove the problem. You need to understand where you are going wrong in the first place.
#2 - There is no money management system in place
Before I went on the mission of getting my personal finances organised, I would receive my salary at the end of the month and have absolutely no plan for how I was going to get the most out of it.
I didn’t allocate anything in my savings account.
I didn’t set any budgets.
I would just spend it willy nilly and be back to zero by the end of the month. Then repeat the process again.
Earning more money can never take the place of a missing or broken money management system.
Everybody that has created and kept huge wealth has an effective money management system of some sort.
A lack of this may be the cause of some of your financial challenges.
Do you have anything in place to structure your spending and how you manage your money? Budgeting may be a good place to start.
#3 - Head in the sand syndrome
When things get difficult in life, putting your head in the sand can be an easier option.
Dealing with some things can just be too much. So we turn the other way.
Sometimes it can be easier to convince ourselves that a new job with a higher salary is just what we need… Even though we are fully aware that there are other things we need to address financially.
If you are thinking about ways to increase your earnings to fix your money problems, you may want to ask yourself these questions first:
- What money habits do I have that maybe the real reason for my financial challenges?
- What changes can I make to how I manage the money that would help me improve my situation?
- Where is the best place to start?