Why Your Income Doesn’t Matter

This post may contain affiliate links. Check out my Disclosure Policy for more information.

Most of the time, one of the first things people say when they are beginning to get their finances together is that they don’t make enough money. This just isn’t true. Your income really doesn’t matter when it really comes down to it.

Of course, having a higher income does make things easier when it comes to reaching financial goals, but you can make a ton of money and have absolutely nothing to show for it.

You hear it all the time, athletes making millions a year and are declaring bankruptcy. But, they had a high income? How could they possibly be bankrupt?

It’s because they don’t know how to manage that income. They weren’t managing all their cash flow and sent it all out to stuff. No matter what your income is, if you aren’t managing your money, it doesn’t matter.

Why your income doesn’t matter.

If you can manage your money well, you can easily reach any financial goal you have for yourself. It may take longer on a lower income, but it can happen. The reality is that all it takes is proper management of your money and you can reach any goal you want.

Being able to properly manage your income is so important, especially if you have a lower one. When you have less money to work with, it can be a careful balancing act when managing your money. But, it can be done.

By carefully managing your money, you can pay off that debt, you can invest your money, you can save for that house. Whatever you want to accomplish, you can do on any income, if you carefully manage your money.

Don’t be afraid to do the work because you don’t think you have the income to do it. Look at your numbers, track your expenses, create a budget, and get working on those big financial goals.

How to manage your money.

The first big step is to get a real picture of your current finances. Where are you at currently with your money. This can be scary, realllllllly scary. The day I added up all of my student loans still haunts me and that was four years ago!! At that point, I was making roughly $1,100 a month, going to grad school full time, and had no idea where my life would be after I graduated with my 6 figures of debt.

I knew my income would be higher after I graduated, but the reality was, it wasn’t going to be enough to afford my student loan debt. I knew I had to very strictly manage my money, if I was going to make some pretty big changes, if I was going to make this all work.

I created a zero based budget for myself and stuck with it. As the weeks and months passed, I started making choices on what I valued to spend my money on. It was amazing how my lifestyle changed to reflect the things I valued. It was also amazing to have control over my money and to see my savings grow and having leftover money to apply to debt.

I continued to use these same money management techniques once I got my first teaching job, which came with a higher income. I didn’t change my lifestyle though to reflect it. I continued to budget for the things I valued and continued to make debt payoff a priority. I also added additional income streams to allow me to reach my debt freedom sooner and have paid off $115k to date.

The best part about managing your money is that you begin to think of purchases differently. You begin thinking about what you value more, this purchase or reaching your financial goals sooner. You’ll also start looking into ways to reach your goals faster, I personally refinanced my student loans with Earnest, use my link to get $200 when you refinance with them!

When it comes down to it, your income doesn’t matter. If you don’t manage your money properly, having more of it doesn’t help you. I am so grateful for my grad school year and making such a small income because it taught me how to manage my money. How has managing your money changed your life?