One thing that we do unconsciously is upgrade our lives around our income. The more income you make, the more upgrades you do. You might not even know that you are doing it. This is why people live paycheck to paycheck despite earning a lot of money. If you ask them how they are earning a lot of money and still living paycheck to paycheck, they will tell you they only spend money on the things they need, which is a lie.
One of the questions I normally ask people is that when you are earning less you survived but now when you are earning more, you find it difficult to survive. Some people might argue that is because the price of things has increased, but in reality, this is a lie it is you upgrading your life unconsciously into your income and 30% of the things that we use our money to buy are the things that we don’t need and the truth is, we don’t know we can live without them until we are forced to do so.
This is why it is difficult for people to save and also to pay themselves first
When you tell people to save 20 to 30% of their income they will tell you that it is impossible because they live from hand to mouth and there is nothing that they can do and They won’t be able to save but when people take this on themselves and that’s when they realize that they’re actually paying for so many things that they don’t need, people even go as far as saving to 50% of their income before paying their rent and so on.
Most of us don’t know until we try it. It might look as if It is impossible to pay ourselves first on paper but when we are determined to do it, we realize that it is very simple and it is one of those things that saved us along the way. There is no way we can stop ourselves from upgrading our lives unconsciously and The only way we can stop this is by having a plan and this is by creating a budget for our money, without these it would be easy for you to upgrade your life to meet your income.
If you are saving without a budget, you can still do better
One thing most people do is believe that they are already doing their best without a budget. Most people who save without plan or budget Believe they are doing their best which might look like that on paper but immediately you decide to have a budget and a plan on how you want to spend your money you realize that you can’t even do better if you are saving 5% of your income before you can increase it to 30%because budget give you a clear idea of how you are spending and what you need.
Thanks for your time.
