Income Insensitive: Why Saving Money Has Nothing To Do With Income

Ask the average person why they can’t save money, and you’ll hear one answer pretty consistently.

No, they don’t focus on the fact that they aren’t budgeting, spending too much money or more than they have or even talking openly and candidly about the fact that they have no idea what living within their means means.

Instead, the masses make their plea to that question with one indelible answer that is far off course from the discussion regarding saving money.

They’ll whine, mope and groan about the fact they don’t make enough money.

And while making more money seems like a logic fix to save money, in actuality, it’s what you would deem a “quick fix” that isn’t so quick. Making more money is what the majority of people would want, obviously, but you don’t exactly have the option to go out and get a job that doubles your salary.

According to the numbers, making more money doesn’t mean you’ll save any more money.

The general public, the ones that aren’t six-figure income individuals, has less than a thousand dollars in their savings account, roughly 60 percent. About 30 percent of individuals don’t have anything saved.

Those percentages are the same for those who have a six-figure income, so the idea that more money means more savings isn’t exactly accurate, even though the thought seems logical.

It’s not.

The truth is the only way to save money is to take a look at that income you’re coveting so much and then budget accordingly as far as your expenses go. Then, you get to keep the difference. The amount of money you make is only as relevant and important as what you do with it in relation to how you spend money.

The budgeting piece can’t get lost in how much you make, and you certainly can’t focus on just the income part of it. It’s an entire, proverbial big picture, which includes spending within your means and working through the budgeting process just like someone who makes $20,000 just as easily as if you made $200,000.

The latter amount certainly looks great on paper, but it certainly isn’t any sort of guarantee that you’ll have an embarrassment of riches in the form of an overloaded savings account. Although more money might give you more leeway to budget and have more expenses than a lesser income, it won’t translate the way you believe.

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