With growing income we usually upgrade our lives accordingly. We buy new cars, move to bigger apartments, and shop for more expensive clothes.
While I fully support rewarding yourself now and then, because you’ve been working hard and you deserve it, it’s wise to keep that in check. People often end up having no money left before the next pay check, because they upgrade their lives too quickly. Whenever income grows, the lifestyle changes.
That’s why even the highest paid lawyers don’t achieve financial freedom if they don’t have financial discipline. Crazy mortgages and car leases force them to work even greater hours, enduring a lot of stress. They have to keep working because they have so many payments and expenses to take care of.
Instead, investing part of the income and increasing your available capital will pay-off big time – not just money-wise by being able to invest when great opportunities reveal themselves, but it’s also vital for your mental health and stress levels.
You no longer have to worry about selling x amount of products or services to upkeep your life, if you’re constantly earning more than you spend.