ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Guy Stresses on Having Good Spending Habits; ‘Lifestyle Creep’ Can Fast Deplete a 6-Figure Salary

The video argues that chasing a high income without addressing spending habits can leave you feeling perpetually broke.
PUBLISHED JUN 3, 2024
Cover Image Source: Guy explains why it is crucial to have good spending habits | @george.kamel | TikTok
Cover Image Source: Guy explains why it is crucial to have good spending habits | @george.kamel | TikTok

Ever feel like no matter how much you earn, it's never enough? You're not alone. In a thought-provoking TikTok video, George Kamel (@george.kamel), the financial guru tackles a head-scratching trend: the idea that a six-figure salary is the new standard for being considered "middle class." The video argues that chasing a high income without addressing spending habits can leave you feeling perpetually broke. The video opens with a powerful question: Is a six-figure salary truly the key to financial comfort? The video challenges this notion by introducing "drowning in payments." He explains that even a seemingly high income can feel inadequate if you are burdened by debt – car payments, student loans, credit card minimums, and a mortgage you might have rushed into.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

Here's the trap. Your rent is $2,000 per month. You might be tempted to buy a house with a similar monthly mortgage payment, thinking it's a good deal. But George argues it's not an apples-to-apples comparison. Owning a home comes with additional expenses like property taxes, maintenance, and repairs, which can quickly drain your bank account.

So, what happens? You pile on these additional costs; suddenly, even a six-figure salary feels like a drop in the bucket. George backs this up with statistics – a shocking number of people making six figures live paycheck to paycheck. Why? It's a phenomenon called "lifestyle creep." When your income increases, it's easy to fall into the trap of spending more to keep up with a perceived image of what a high-earner "should" have.

The video has struck a chord with viewers. Many have commented on the importance of managing debt and living within your means, regardless of your income level.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

"100k is roughly 5k take home after insurance and retirement. It’s easy for a modest mortgage, utilities, daycare, and food to eat this quick," said one viewer.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

"Yes but also everything has increased in price like insurance, groceries, eating out, all bills. It’s nuts," said another commentator.

Image Source: @george.kamel | TikTok
Image Source: @george.kamel | TikTok

The video serves as a wake-up call to re-evaluate our relationship with money and prioritize building financial security over chasing a high income alone.

A person experiences "lifestyle creep" as their standard of living rises in line with their financial resources, turning once-luxuries into new needs. A boost in earnings or a decrease in expenses can cause this increase in discretionary money. The change in attitude and behavior occurs when spending money on non-essential things is seen as an entitlement rather than a choice. The mindset that "you deserve it" which overshadows the possible advantages of saving money reflects this. One can prevent "lifestyle creep" by keeping a tight budget and separating needs from wants while purchasing.

George's message is clear: A high income is wonderful but not a magic solution. Building true financial freedom requires a two-pronged approach – earning well and managing your money wisely. By tackling your debt, living within your means, and avoiding "lifestyle creep," you can create a sustainable financial future, regardless of your salary. Remember, true wealth isn't just about how much you make; it's about how much you keep!


@george.kamel Your most powerful wealth-building tool is your income. And when you spend your whole life sending loan payments to banks and credit card companies, you end up with less money to save and invest for your future. #sixfigureincome #lifestyle #wealthbuilding ♬ original sound - George Kamel

 

Follow George Kamel (@george.kamel) on TikTok for more such videos and content.

MORE ON MARKET REALIST
The sharks did not expect the product to taste as good as it did, considering what it was made from.
5 hours ago
The designer was also commissioned by top brands and worked for the royal family.
6 hours ago
The host had a look of bewilderment on his face which was absolutely hilarious.
7 hours ago
Things did not seem to be going well for the entrepreneur due to her high energy.
10 hours ago
The guest might have had high expectations, but they were quickly brought down to earth.
11 hours ago
The contestant was unable to contain her excitement and hugged the model.
1 day ago
Two of the players got it right, and while the player who lost didn't mind, fans were not satisfied.
1 day ago
Lisa celebrated her birthday in style with a perfect two-card guess to win the big prize.
1 day ago
Rick Harrison did what he could to console the guest who said that he had lost faith in NASCAR.
1 day ago
Both the guest and the expert were fascinated by how well the automaton worked.
2 days ago
One of the entrepreneurs broke down in tears, explaining all the struggles they had to go through.
2 days ago
She couldn’t believe it when her doll was appraised at a five-figure sum, and laughed in disbelief.
2 days ago
Ken Jennings truly has embraced "Jeopardy!" in every way possible at this point.
2 days ago
The comedian was impressed by the simplicity of the product and amused by the pitch.
3 days ago
Harrison usually makes smart deals on the show, but this vintage car buy turned into a costly mistake.
3 days ago
Had she started the game in a better way, she might have won the five-figure prize money.
3 days ago
Barbara Corcoran made the exact same offer, and she wasn't happy about being rejected.
4 days ago
The guest believed that it was worth a modest amount of money, but that was clearly not the case.
4 days ago
With James Holzhauer in the lead, Amy Schneider and Andrew He decided to joke around.
4 days ago
Barbara Corcoran told the founders that she had never seen Greiner so passionate.
4 days ago