- Posted July 8, 2012 by
This iReport is part of an assignment:
Economy: Are you better off?
- My Ten Sense: What to do when your money is low
- My Ten Sense: Making more money isn’t the answer
- My Ten Sense: 6 keys to couples happily managing their money
- My Ten Sense: Prepare your children so they don’t ask for handouts
- My Ten Sense: 10 things college students should know from student loans to landing their dream job
My Ten Sense: Earning $100,000 a year and struggling
The average American household is struggling on $50,000 per year, and many survive off far less.
So you would think the typical family would be living large if the household income doubled to $100,000 per year. And you would be right, but it wouldn’t necessarily make the family better off.
The family would be living large because the extra $50,000 per year would allow them to buy a more expensive car and a bigger house. They also would be able to eat out more. But that also comes with a higher car note, higher car insurance, a higher mortgage and higher utility costs.
So all the family would be doing is increasing expenses to go along with an increase in income. Like deceased legendary rapper Biggie Smalls once said, “More money, more problems.”
Therefore, making $100,000 a year wouldn’t be the end of your financial struggle. It would just enhance it. My former pastor once preached that God won’t bless you with more until you have proven that you can handle a little, or something like that. That means if you’re struggling with $15,000, $30,000 or $50,000 a year. You’re going to struggle even if you get a pay increase to $100,000 a year.
Read stories of people who are struggling at $100,000 per year and find out how they and you can improve your finances to be more secure on my blog, www.mytensense.com.