HOW 6-FIGURE EARNERS GET TRAPPED IN THE PAYCHECK-TO-PAYCHECK CYCLE || THE NUMBER ONE CAUSE 

My husband and I were over spenders! It was terrible. We bought things and went on vacation and always ate out. The credit card debt was out of control! So glad we finally said STOP and started a budget. It’s been such a relief.

I honestly think no one believes it until they find themselves struggling to keep up w pymts while everyone else thinks they are living the rich life. Happened to my hubby before we met and a family member who’s a physician. Hubby got his PhD in electrical engineering and makes good money but we worked so diligently to not eat out every night (lol), pay off debts, and constantly saving up for things which is more exhausting than just getting a loan for it to be honest.

Sorry it took me to today to respond, but we were on our 8 hour Boston to Baltimore ride yesterday. Yay, Katie!!! You did it. A video on a Financial Topic that wasn't just a report on your budget. You did great. I think you should be happy on your views. Your are not a financial expert formally!!! But you are a smart person, and DO have a lot to offer others. I do quibble a little on your "inflation is out of control" comment. It is higher than it was before. But certainly NOT what it was during other times I have lived through. But you do explain to others, that "inflation" is not the issue. Its perspective, and life style. Keep making these. I would be happy to offer help if you want me too. Again, good job.

Great ❤Video we use to live Paycheck to Paycheck now we pretend like we living Paycheck to Paycheck but we do it with savings 😂 witch i like alot better

Katie, this video is wonderful. I am one of those people who struggled to make ends meet for so many years and when I did get that promotion and raise, I made myself believe that I can afford more. Big mistake. It has only been a few years, but now I am working to clean up the mess I have made with my finances. I am glad to be on the right track now, just wish it was sooner. Thank you so much for sharing your thoughts about this topic! ❤❤

So true. My car is 12 years old but it’s paid off 😂 It’s sticking around.

Awesome job Katie. We’ve definitely been paycheck to paycheck most of our lives. Then we got a budget and it was like “wow” it was completely unnecessary for that to be the case. I agree. Sometimes it still feels paycheck to paycheck with the debt payoff journey.

I did an inflation calculator and my 90k a year is equivalent to like 51k a year in 2003. Why did I do this calculation? Because my dad was convinced my husband and I should be able to save 300k together to buy a house outright. Turns out as a lawyer I’m making basically the same amount as my dad made at my age as a social worker in 2003. Inflation is crazy

Great video. I make 6 figure but act like I don’t. Automation is the best. I have my 401 and also savings automatically deducted so I don’t even see that money on paper. I also drive. 12 year old car and have money each month put aside Dow when o do need to purchase a new vehicle. Thank you for your video. Very honest!😊

Lifestyle creep. Never had it but can kinda relate. We grew up very broke so saving was a natural protection. We retired really early because of that. Buckle down and pay off consumer debts!

Great video, and thanks for sharing your family's story. It's so hard to look to the future, but once you start saving and investing and seeing your net worth grow, it makes you feel motivated to continue on this path.

Well said! It so easy to spend the money specially when I’m a spender on heart lol.

PREACH!!!!!! 🙌 Lifestyle creep is something I am trying to warn some of my Budget Babes that just became debt free against. I'm worried their new found "extra income" will lead them down that path. Everything you said about the GOOD things you deserve that align with your goals is SPOT ON!!!!!

I really enjoy when you make these videos. Wish I would found this video before we went and spent. However we are on the path do the right thing now. I just am going at it a little slower with me being the only income until my husband goes back to work. I could find a second job and hurry the process but for now I’m not going to do that and just see if I got this. Hope you have a wonderful weekend. Thank you so much for all you do for us😊

Good morning and thank you for sharing your journey. I personally don't make 6 figures but I was able to pay off debt by tightening everything I did which included fun and life. When I got burnt out I decided to just go day by day and not care. Now I'm working to slowly get back into cash budgeting but balancing bills and making memories with my kids. ❤ hope you have an incredible day

Katie, i really appreciate your transparency in this video. I always wanted to make 6 figures and now that i am in the 6 figure income bracket i soon realized that i had it all wrong. I should of been focused on saving 6 figures opposed to making it. This higher income comes with higher taxes. No matter the income bracket it's smart to focus on financial goals to reach financial freedom for example investing to create passive income so that we are not continually trading time for money.

Awesome video, Katie! It's so true. My husband and I have well over 100k income and although I wouldn't consider us to be paychq to paychq because we save and invest, we do have some debt. So that takes away from the overall picture... even though it is not a ton of debt. I hope a lot of ppl will listen to this and your other videos to get a better understanding of finances. There is a lot of great info on your channel! Hope you're having an amazing day, Katie! ❤

Personally my issue is daycare + debt I took out from previous years when I wasn’t making much. Still trying to catch up

Hello Katie! This is really helpful advice! Breaking out of the paycheck to paycheck cycle is vital. Yes, I deserve financial freedom!! 🌻💜🌷

Great video and you explained this so well.

This is the advice I wish I had known 30 years ago when I was first starting out. I have lived paycheck to paycheck most of my life up until I started budgeting a few years ago. Now, we are comfortable where we are (it always can be better though). Now, I look forward to those paychecks so that I am able to pay off debt. Never in my life would I thought that that’s what would make me happy!

This is so true! I remember when we had “extra paychecks” aka nothing going to bills or bonuses we would just spend them and now I’m looking back thinking wow if I would have taken this seriously back then haha but were on the right path now 🎉

Great video - excellent advice. Been there- done that lol. Sadly I think it is a lesson most of us have to learn on our own. I am old and retired and I sure wish I would have listened more the hundreds of times I heard people talk about Roth IRAs. Managing taxes in retirement is hard. I heard the message over and over but didn't put much in Roth and now I sure wish I had. Debt free is where it's at tho for sure.

Hi Katie! Great video! A coworker at the hospital asked me why I don’t buy a new car (I drive an old mom van lol) and I said my van still works. 🤷🏻‍♀️ I think the younger me would definitely have gotten a new car right away! Thankfully I learned my lesson on a smaller income. 😅 Btw you guys did amazing investing so young!

Great topic and let’s not forget more money higher tax bracket so your paycheck is getting stripped by the government first then if you have insurance and investments that can easily be $1000 or more less take home pay…things I wish I did when I was making so much less

That was an amazing first hand account of how high income earners can be paycheck to paycheck. Hopefully your video can knock some budgeting sense into a few more people. You are so right about people not wanting to share their money woes.

We’re not 6 figure-but we were always good with $$ until SOMETHING happened. And we can all have that. But we made a couple of foolish decisions, moved to a repo house that ended up needing more work than we expected. And a few years later we were in super debt. But we’re almost there!

I distinctly remember my husband to be and me sitting in a bowling alley (!) doing napkin math, calculating that we’d be bringing home $4,000/ mo. and thinking that we had really made it! And probably we had, for awhile, until lifestyle inflation, kids, etc. came along. We learned some lessons, weren’t totally stupid, and eventually got our act together, thank goodness-but the journey took longer than it really should have. But oh, that feeling of seeing what we both thought was an enormous $ figure on the napkin!😂😂😂

Love to see you doing this content. Love that your covered Lifestyle Inflation. There is an old saying "the more you make the more you spend" We are always waiting until we make more money and then all will be well. However, the moment you get that raise, instantly the creep comes in and you are no further ahead than you were. The inner speak of "I worked hard, and I deserve this" is powerful and will take over. Great subject. Thanks for covering it.

Awesome insight and very important video, Katie. Thank you for sharing it with all of us! Don't be like Betty and Bob! Be weird like us! 🙂

This is good advice to keep you out of high interest credit card debt. I love the convenience of credit cards, the points and cash back. But if you don’t keep track, it can tough. My son pays his cards as he charges, I pay mine twice a month. I am older so I don’t have much debt. It brings me joy to watch how excited you are to pay off your student loans and the thought you give your purchases. You are a lovely individual.

So good! Part of it the idea that I need to keep progressing. I didn’t know much about money going into college. For my parents they just spent less than they made. But I didn’t know strategies. So I was comfortable as a child so I thought it would be easy to live comfortably as an adult. Expensive clothing, gym clothes, memberships, eating out, vacations, car payment etc. not knowing what I actually value and seeing. good points!

This is a great and very relatable video!

Hi Katie!! Excellent video!! I totally agree with what you’re saying!! We have similar stories… I was definitely living paycheck to paycheck when I first started my career… I wasn’t at six figures yet, but I quickly realize that the pattern wouldn’t stop unless I intentionally did something about it! Paying off the debt and having discretionary income, has definitely added so much peace to my life financially!! The grass is usually not greener on the other side of a lot of situations in life, but the grass is greener on the other side financially when we tell our money where to go!! These videos are timeless… no matter when it is viewed it will help someone!! Great great job Katie!!!

This was so good! Wish we had started 10 plus years ago. But live and learn. While working on our debt free plan, we are also teaching our kids financial values, too. Loved this!!!

Lifestyle inflation can be so sneaky. It's just hard in general to have self control and to sacrifice. Money goes SO FAST! It's so awesome you shared this to help others learn! Not only are we not taught how to manage money, but we are taught by the society to spend, spend, spend.

Great video this topic is sooooo important. We were in the cycle, but we had a come to Jesus & broke it. Never again 😊❤😊

We finally got one month ahead of bills and out the paycheck to paycheck cycle. We are simultaneously paying off debt and saving right now. Most definitely agree with you on your points. Thanks for sharing.

I don't understand how you learned all this and then went right back into a ton of car debt?