Even the Wealthy Need A Budget

Many people think that becoming wealthy means that they no longer have to budget. The logic goes that if you have enough money, it’s no longer important how much is spent on various categories. When you have extra money, you don’t have to track where it all goes, right? Wrong.

Those who want to remain wealthy and grow even more wealth continue to budget. Sure, it gets easier when there’s a lot more money. The very wealthy don’t necessarily have to stay within the grocery budget, for example, or else risk not being able to pay the mortgage. They can go over their projected amounts from time to time with no detrimental effects. However, too much of that can slowly erode

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2 Responses to Even the Wealthy Need A Budget

  1. Cassie says:

    You are correct; everyone needs to have a plan for his or her money. High Earners are no more or less likely to live on less than they make without a plan then average earners. We are all venerable to lifestyle creep where every income increase is followed by a lifestyle increase. The only protection is a plan complete with goals and a budget.

  2. Gail says:

    If you read Money magazine, they frequently feature families that make huge amounts and yet don’t have two nickels to rub together. I think they think that since their income is so high that they can afford whatever they want. Why else would someone tie themselves up to a $7000/month mortgage, credit cards, etc. and have no money saved. I get truly amazed that people can be smart enough to earn that kind of money. My son that makes a bit more than minimum is very careful with his income and budgeting and has no credit card bills, unlike many guys his age. So it is odd that you can see people making oodles of money and blowing it all and an autistic man supporting himself with no help with money in savings!

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