Do You Have a Dream Salary?

by Miriam Caldwell | More from this Blogger

16 Oct 2007 08:11 PM

Do you have a dream salary or annual income figure, that you know once you reach it that everything is going to be okay? You will never have to worry about money again, because once you make $100,000 a year your worries are over. You may be surprised to realize that while many people feel that way, once they reach that income level things change and they are just as worried as they were before.

Generally your spending level increases with each raise. So that magic number is not going to solve your problems, if you are overspending at $40,000 a year, you will likely be overspending at $100,000. Additionally you may be overspending more and increasing your debt much faster because you make more money and can "afford" to spend more.

If you really want to change your money situation, you should not wait to hit that magic number. You should simply start now. Begin to budget, spend less than you make, get out of debt and save money. These simple steps will help you achieve financial freedom. They will give you security that does not depend on a paycheck or a certain amount of money.

There are instances when you simply need to make more money or you will not be able to survive financially. If this is the case for your family, you should be actively looking for ways to increase your income. You may take on a second job, or look for a better paying one. You may have to cut back more than normal, but you should still avoid debt and try to save money.

Ultimately, you are the one in control of your finances. Your financial dreams and goals will not be met by an increase in salary (though it may help if you are responsible with your money). You will be able to achieve your goals through disciplining yourself to spend less than you make.

Related Articles:

Do Your Spending Habits Reflect Your Income Level?

Changing Expectations

Does Money Equal Happiness?

Learn more about Miriam Caldwell

Miriam is a SAHM mom of three children. She has a daughter who is seven, and two sons, four and two. She loves being a parent and spending time with her children.

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