How many affluent professionals live paycheck to paycheck despite earning a high salary? 

Well, a recent survey showed that around 70% of high earning Millennials (ages 25- 40) and 60% of Gen Xers (ages 41-56) are living paycheck to paycheck. *

Do you agree? Are you one of them?

The question is why even affluent professionals run out of money during the month? You would think that they have large disposable incomes that could be funnelled into savings.

Many can say life happens, but often, our standard of living is too high. We have very large expenses every month which could include:

•    Private schools
•    Child support
•    Ex-spouse support
•    Expensive cars
•    Homes in affluent areas
•    Supporting family members
•    Memberships to clubs
•    Impulse spending
•    Large debt repayments like credit cards, loans, mortgages, car payments, membership fees etc.

The biggest problem of living paycheck to paycheck, is that if there is never extra money for savings.

Saving should be a priority when you receive your salary. Set up a direct transfer into a savings account so you don’t feel it in your pocket. 

Along with this, it is time to trim some fat off your expenses. Set up a budget and stick to it. Prioritise savings first, secondly bills, and only then allocate disposable income. With a little of discipline and watching the card swipes, it is easy to set aside an amount to build into a savings nest egg.

If you are not disciplined enough to save, then it is advisable to meet with your financial advisor to help set up a budget and strict spending limits. [email protected]

*https://www.businessinsider.com/

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.