#MoneyMistakes: Increasing your spending when income goes up
The average person thinks their income is not enough to meet their expenses. They need more money to spend. That is exactly what happens when more money comes – more spending.
This is shooting yourself in the foot. You need more money for sure. But there is a more sustainable way of getting more, and more and more.
It is by delaying gratification and allowing your money to work for you. By increasing your spending when your income goes up, you lock yourself in a cycle of earning to spend or living from hand to mouth. This is a classical hunter mentality.
When you increase your spending, you are increasing your cost of living without a commensurate increase in passive income. You are in effect taking steps backwards away from your goal of financial independence. You are making the gap wider rather than closing it.
Embedded within your income is seed for future growth. If you do not plant the seed, you do not get the future harvest. Saving and investing ought to be a habit. When your income goes up, your savings and investment should go up accordingly. When you delay gratification, you put yourself in a stronger position in increase your spending in future in a sustainable way