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Would you Really Have Saved More If You Were Getting Paid More?




By Stas Bekman.

Published: 16 July 2006

Would you Really Have Saved More If You Were Getting Paid More?

In theory getting paid more than you are now (getting a better paying job, or getting a raise), should allow you to save more. However in reality this is usually not the case. As soon as we have a bigger income most of us adjust to it, by starting to spend more. Your salary could be getting bigger and bigger every year and you can be still broke.

The secret is to get a bigger salary, while not raising your consumption. If you can stay in the same house, buy the same foods, don't change your entertainment and outings style, etc. then any extra income converts into more savings. Which you can then invest and make even more money with it.

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