"From a sheer numbers standpoint, our family would qualify as high-earners. My husband earns a healthy salary and bonuses from his corporate job, while I bring in extra cash from my freelance business. We're considered HENRYs - high earners, not rich yet. We're also millennials, with student loans, high interest rates, kids, and the rising cost of living to contend with. Here's how we make our money work for us."
"And I realized that the advice was spot-on. The more money you earn, the more you spend, and the easier it is to lose track of things. Today, even though we're earning the most we've ever earned, we live on a budget - for everything from investing for retirement to saving for our boys' college to paying bills, and even for our biweekly spending allowance."
"I automate everything related to my finances. Every payday, our bills are automatically debited, our retirement and college savings contributions are deducted, and our spending money is sent to a separate account. It's an easy way to stay on budget for someone who doesn't necessarily love checking a bank account every day; plus, it helps us stay on track with our medium and long-term financial goals even when life gets busy. And with two kids, it often is."
High-earning households maintain a strict budget to control spending and allocate money toward retirement, college savings, bills, and allowances. Automation ensures bills, retirement, and college contributions and spending allowances are handled automatically each payday, reducing manual tracking and protecting long-term goals. Regular monthly investing continues even while paying off student loans. Resisting lifestyle upgrades prevents income-driven spending increases. Setting biweekly spending allowances preserves day-to-day enjoyment. Pursuing passive income sources and prioritizing medium- and long-term financial objectives supports wealth building despite high costs, student debt, and family expenses.
Read at Business Insider
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