Why Big Salary is Not a Guarantee of Financial Health?.

[Suba]

I often meet people who have good jobs even at the middle manager level, even many of them do not have emergency funds and investments, but I find employees who get smaller salaries actually have savings, emergency funds, and investments. So a big salary is not a guarantee of having healthy finances and it depends on each person's personality.

 

[Starmix]

There is no guarantee. Some people who work like a horse never bother themselves to set aside an emergency fund. Their reason is they always receive their salaries and the insurance health system. But the truth is it is not enough.

 

[Kross]

Big salary without planning would still make you be broke before payday. It is more of financial intelligence than the amount.

 

[Suba]

A person's habits and lifestyle will greatly affect their spending, people who like to hang out in cafes, like to shop, will often be short of money, making it impossible for them to save and invest.

 

[neku]

Here government agencies ensure that the income of a person depends on their lifestyle. If a person leads a lavish lifestyle the government agencies ensure that the person is making more money. In contrast, citizens who are frugal find that they are making very less money despite working very hard.

 

[SilverLance]

It's not about how much you make, but how you manage and grow what you have that truly matters.

 

[Springtime]

Indeed, earning a big salary does not guarantee financial health. If you do not manage your personal finance properly, and live a luxurious lifestyle, you will end up struggling with your financial situation.

 

[King Belieal]

A person's habits and lifestyle will greatly affect their spending, people who like to hang out in cafes, like to shop, will often be short of money, making it impossible for them to save and invest.

You are right. All those people that like turning up at events and living a stewed life with no future thoughts would never become rich with a million dollar salary.

 

[SilverLance]

Key components of maintaining good financial health consist of living within your means, budgeting carefully, saving for the future, and avoiding unnecessary debt.

 

[eLdavis]

You could have a huge salary and still spend on things that are not necessary, or you could have a lot of expenses to sort out.

 

[Fidelia]

Lifestyle inflation is the main reason why people that are earning very big don't still multiply their wealth. Some even go broke thereafter.

 

[Nomad]

If you have cash flow management skills and if you know how to save and how to invest, earning big salary actually improves your financial health

 

[SilverLance]

Regardless of income level, having a well-thought-out financial plan is essential for achieving true financial health and security.

 

[Starmix]

Having a big salary but the emoloyee has no financial literacy then he remains nothing. I am so sure saving is not in the mind of the employee but wasting by buying things not part of the daily needs. Saving and investing guarantee good future. One will live with money to work for him.

 

[SilverLance]

Without financial literacy, even a big salary can quickly disappear through unnecessary spending and poor investment choices.

 

[Starmix]

Many employed people do not have financial literacy reason why they do not have savings and retirement plan , no business and investment. They will continue struggling until old age. Instead of money to work for them, it's they to work hard for the money.

 

[SilverLance]

Without financial literacy, people may not realise the importance of saving for the future or investing in things that can grow over time.

 

[Starmix]

It is so hard if there is no financial literacy, but one can be financially literate through his commonsense and disposition. In fact, there are less educated people who have a very rich disposition. Albert Einstein said "Imagination is more important than knowledge.

 

[SilverLance]

Einstein quote highlights the importance of creativity and thinking differently in all aspects of life, including when it comes to managing finances.

 

[Starmix]

It is from our common sense that we know the flow of our finances and resources we believe the paths to wealth. It is also not easy. It does not happen in a day, week, or month but in years of hardship and patience.