Mistakes That Get High Income Employees Into Debt

You might not feel rich, but you are in a better financial position than a lot of other people.  You know you are rich if you have achieved your weight loss goals because you could afford the foods and supplements required to stick to a restrictive diet, because your health insurance paid for your weight loss drugs or weight loss surgery, or because you have time to take a nap when food cravings strike.  You know you are rich if your house has more bedrooms than people or if your household has more than one car.  You know you are rich if you click on the articles about how American households with an income of $100,000 per year are living paycheck to paycheck instead of scrolling past them because it is too depressing to read news about the problems that you deal with every day.  Despite all of this, you don’t feel rich.  The bad news is that debt can happen to anyone, regardless of income, but the good news is that debt relief options such as debt consolidation loans and filing for bankruptcy protection are available to people of all income levels.  A Plantation debt lawyer can help you get out of debt and will not judge you for being in debt despite your highly paid job.

Being in Too Much of a Hurry to Grow Your Money

Investing your money can buy you financial stability, but looking for interesting investing opportunities as soon as you get your paycheck is as risky as splurging your paycheck on interesting baubles.  Sure, there are YouTubers in abundance who will tell you that, if your income is $200,000 per year, all you have to do is invest in the opportunities I tell you to invest in, and you will be a millionaire before you know it.  Financial planners may tell you the same thing.  The trouble is that the financial planners are getting money when you invest, and the YouTubers are getting money when you click, not to mention the money they are getting from the sponsors whose products they promote.

Having Too Much Fun With Your Available Credit

A high income brings plenty of opportunities to buy things you can’t afford.  If your income is high enough, you can qualify for a car loan on a much more expensive ride than you need or a mortgage loan on a second home.  If you make enough of these purchases, soon your paycheck will be going entirely to debt payments, which is painful enough to make your debt-encumbered toys not seem like so much fun.

Assuming That You Will Never Have to Take a Pay Cut

The biggest reason not to make risky investments or extravagant purchases with your high income is that fortune is fleeting.  You don’t know if your industry is a bubble that will eventually burst or if some other circumstances will require you to take a pay cut.  You are better off just saving your money to avoid future debts.

Work With a Debt Lawyer About Debt Relief for the Upper Middle Class

A South Florida debt lawyer can help you get relief from your debts if you got carried away living beyond your means.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

gobankingrates.com/money/finance/mistakes-even-high-earners-make/