Meet Jeff. He is a successful realtor who earns $200 000 a year. He claims that he does not earn enough to keep his memebership to the country club or pay for his summer cottage. He is really freaking out!
Now meet Shera. A single mother earning $45 000 per year. She recently paid off her credit card debts of $15000 and is saving money for a summer vacation. She is also planning to invest in a "rent to own" investment
Does this look weird? How can somebody earn $200 000 and struggle, while someone earning $45 000 pay off her debt and start saving?
Focus and Discipline
The answer is focus and discipline. It all depends on the person, not how much they make. Someone may make $300,000 a year, but if they spend $400,000 to look good, they are nowhere near wealthy.
Jeff would be fine if he cut some toys out of his life and controlled his money. Things were already tight for Shera , and she knuckled down. Her income was very small compared to Jeff, but she said no to a lifestyle she couldn't afford and focused on eliminating her debt.
Someone who wants to be out of debt wills it to happen. Yes, it's easier if you make more, but that doesn't mean winning with money is impossible for those who make less, like Shera.
The hardest part of cutting your lifestyle, doing a budget, or having the conviction to change your spending habits is just getting started. Knowledge is power, and habits are hard to break.