Common Financial Mistakes Even High-Income Earners Make
Earning a six-figure salary can make building wealth easier, but it’s not a magic solution for your financial woes. Earning a high income is only one part of the equation.
Most of the mistakes that six-figure earners make are easy to fix. Here’s how to use that high income to your advantage and build your net worth.
Creating a budget doesn’t have to be hard. Think of it as your spending plan. Make a list of all monthly expenses and use it to create your budget.
Mistake #1: Not using a budget
Having a financial blueprint will give you peace of mind since you know what financial moves you need to make to ensure your success. It will also help you align your finances with your long-term goals and values.
Mistake #2: No long-term financial plan
Talk with a financial advisor or a tax advisor on how you can pay fewer taxes this year. If you own your own business, it’s important to enlist the help of an accountant or tax advisor.
Mistake #3: Failing to minimize taxes
This is especially true of six-figure earners since they assume their good fortune will last for the indefinite future.
Mistake #4: Spending too much
Get in the habit of saving the same amount of your income no matter how much you make. A good number to shoot for is 20-25 percent (more if you’re able).
Mistake #5: Not saving enough
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