The Thing We Never Talk About

When people feel financially stretched, it can be hard to decide where to cut back. What if you just focused on earning more instead? It seems like the logical solution — but there's a problem with that logic: almost everyone increases their spending when their income goes up. The result is that you find yourself right back where you started, just at a higher level. In this episode, Tim shares a real example of a household earning over $400,000 a year that still had nothing left over, why trying to out earn your spending rarely works, and a practical framework for building a gap between what you earn and what you spend — and keeping it.

One Key Takeaway: Earning more won't solve a spending problem. Instead you need to spend below your means, save the rest, and widen that gap every time your income goes up.

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