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MARKETANALYST.US / ECONOMY & WORK

Guy Stresses on Having Good Spending Habits; ‘Lifestyle Creep’ Can Fast Deplete a 6-Figure Salary

The video argues that chasing a high income without addressing spending habits can leave you feeling perpetually broke.
PUBLISHED JUN 3, 2024
Cover Image Source: Guy explains why it is crucial to have good spending habits | @george.kamel | TikTok
Cover Image Source: Guy explains why it is crucial to have good spending habits | @george.kamel | TikTok

Ever feel like no matter how much you earn, it's never enough? You're not alone. In a thought-provoking TikTok video, George Kamel (@george.kamel), the financial guru tackles a head-scratching trend: the idea that a six-figure salary is the new standard for being considered "middle class." The video argues that chasing a high income without addressing spending habits can leave you feeling perpetually broke. The video opens with a powerful question: Is a six-figure salary truly the key to financial comfort? The video challenges this notion by introducing "drowning in payments." He explains that even a seemingly high income can feel inadequate if you are burdened by debt – car payments, student loans, credit card minimums, and a mortgage you might have rushed into.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

Here's the trap. Your rent is $2,000 per month. You might be tempted to buy a house with a similar monthly mortgage payment, thinking it's a good deal. But George argues it's not an apples-to-apples comparison. Owning a home comes with additional expenses like property taxes, maintenance, and repairs, which can quickly drain your bank account.

So, what happens? You pile on these additional costs; suddenly, even a six-figure salary feels like a drop in the bucket. George backs this up with statistics – a shocking number of people making six figures live paycheck to paycheck. Why? It's a phenomenon called "lifestyle creep." When your income increases, it's easy to fall into the trap of spending more to keep up with a perceived image of what a high-earner "should" have.

The video has struck a chord with viewers. Many have commented on the importance of managing debt and living within your means, regardless of your income level.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

"100k is roughly 5k take home after insurance and retirement. It’s easy for a modest mortgage, utilities, daycare, and food to eat this quick," said one viewer.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

"Yes but also everything has increased in price like insurance, groceries, eating out, all bills. It’s nuts," said another commentator.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

The video serves as a wake-up call to re-evaluate our relationship with money and prioritize building financial security over chasing a high income alone.

A person experiences "lifestyle creep" as their standard of living rises in line with their financial resources, turning once-luxuries into new needs. A boost in earnings or a decrease in expenses can cause this increase in discretionary money. The change in attitude and behavior occurs when spending money on non-essential things is seen as an entitlement rather than a choice. The mindset that "you deserve it" which overshadows the possible advantages of saving money reflects this. One can prevent "lifestyle creep" by keeping a tight budget and separating needs from wants while purchasing.

George's message is clear: A high income is wonderful but not a magic solution. Building true financial freedom requires a two-pronged approach – earning well and managing your money wisely. By tackling your debt, living within your means, and avoiding "lifestyle creep," you can create a sustainable financial future, regardless of your salary. Remember, true wealth isn't just about how much you make; it's about how much you keep!


@george.kamel Your most powerful wealth-building tool is your income. And when you spend your whole life sending loan payments to banks and credit card companies, you end up with less money to save and invest for your future. #sixfigureincome #lifestyle #wealthbuilding ♬ original sound - George Kamel

Follow George Kamel (@george.kamel) on TikTok for more such videos and content.

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