Most people are bad with money, but for some reason, most people in the corporate world are even worse with money. I have never met so many people with upper five-figure and lower six-figure salaries who are drowning in debt as I did in the corporate world.
Corporate employees can’t seem to stop spending money. Maybe they need a new BMW to be seen in for 20 seconds in the morning as they park in the parking garage. Maybe they need the all-white $180 designer dress shirt that look identical to other, cheaper brands. Or maybe they need to eat at $100 per person Brazilian steakhouses once a week in order to feel important. And don’t forget the $5 Starbucks coffee every morning!
And as they get raises, they continue to spend more money, and their net worth never increases. The small amount of savings they have is invested with an interest rate that is much less than what they are being charged on their credit cards, where they are carrying large balances. After a few promotions at work, they are now making $90-$100,000 per year, yet their net worth has not increased any since they were 22 years old. They don’t have any emergency savings in case they lose their jobs or have a medical emergency, but they have a leased BMW, a motorcycle, and a boat, all of which are liabilities that lose value over time. They are one paycheck away from bankruptcy but they appear to be doing well to everyone who sees them.
I guess as long as you look like you’re rich, it doesn’t matter that you lay awake in bed at night wondering whether or not you’ll be able to afford this month’s car payment.
Most people don’t want to be rich because it requires living conservatively.