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Earning a six-figure salary is a common goal for many business-driven individuals. Generally, people assume that breaking the $100,000-per-year threshold goes hand in hand with financial stability. But in reality, more families are realizing that six figures don’t guarantee the same quality of life they used to. It may have been possible to live lavishly on a six-figure income back in the 80’s or 90’s, but that just isn’t the case in the 21st Century. So what factors play into this shift in financial security and how does the LIMU Experience address this trend?
YOU MAKE MORE, YOU SPEND MORE
Bringing home more dough usually translates to having a higher budget for things like fancy rides, lavish digs, exotic trips and expensive material items. It makes sense when you think about it: If you can finally afford the things you used to dream of, you may let your spending habits get a bit out of control.
It’s easy to fall into “the high-income curse”: You make more money than ever before, but you end up spending more than you would’ve ever spent while making a lower salary.
It might feel nice to splurge in the beginning, but your bank account won’t look so hot after a few months of frivolous spending and underbudgeting. This is where many people fall right back into the debt they worked so hard to overcome.
There’s often a disconnect with the amount of money people have and how they consider themselves. According to Northwest Mutual’s 2017 Planning and Progress study, about 70% of the U.S. adult population considers themselves middle class, both in income and mindset, but only 50% are. The actual number of middle-income households in the U.S. has been shrinking for decades.
“Fixed expenses are increasing at a faster rate than incomes, making it harder to live the lifestyle our parents lived,” said Mani Woodruff, MagnifyMoney’s executive editor.
Simply put, people are broke at different levels. That’s why the LIMU opportunity is so attractive to people from all walks of life.
Financial debt is a major contributing factor to many American’s lack of security, no matter how high their annual salary may be. When times get tough and cash flow is low, credit cards become a source of temporary security for countless families. For someone bringing home a six-figure salary, it’s easy to qualify for a high credit limit. However, this can begin a slippery slope to bankruptcy, depending on how out of control the debt becomes.
ValuePenguin found that over 40% of all U.S. households carry credit card debt, with the average American household carrying a balance of $5,700.
The greater the household income, the higher the credit card debt. Individuals in the highest income percentile had an average of $11,200 in credit card debt—nearly four times as much as households making the least.
When it comes to student loans, 42% of people who’ve gone to college took out debt, with the average grad owing roughly $28,400, according to The College Board. It’s no wonder that Americans are struggling to make ends meet when they enter the workforce with more debt than previous generations ever had. Between school loans and credit cards, it’s easy to lose control of your finances. But if you let yourself get caught up in the aura of having money, you’ll get lost in another pile of debt.
THE EVER-RISING COST OF LIVING
Twenty to thirty years ago, six figures meant something substantial—it was a definitive sign of wealth and success. Nowadays, a household income of $100,000 a year is hardly enough to get by on, especially for a family of more than two people. Many find themselves still living paycheck-to-paycheck, especially when residing in some of the most expensive areas in the country.
Both price inflation and the increasing cost of living have contributed to a widening gap between the perception of a six-figure paycheck, and what it realistically gets you.
Food, gas, rent, health insurance—you name it, the cost of living is higher than ever. Naturally, as inflation increases, the value of your hard-earned dollar decreases. An article on Bankrate says, “Due to the rising costs of food, energy, college tuition, health insurance and the growing ‘necessities’ of a middle-class life, a $100,000 salary in some parts of the country covers little more than the essentials.”
SUPPLEMENT YOUR SALARY
LIMU provides a turnkey way to add another stream of income to your household. By working part-time from your cell phone and leveraging your existing contacts and social networks, you can plug into a proven System and simple Process for earning extra cash and bringing in additional paychecks each month, instead of another bill. People all over the world have realized the incredible potential of the LIMU opportunity and have used it to change their lives for the better.
You can too, by becoming a Promoter and unlocking unlimited earning potential and a major lifestyle upgrade.