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Big Income Is Not A Guaranty Of Financial Security

Low income is the common cause of financial problems. However, there are many with income way above the poverty level filed for credit counseling, consumer proposal, or even bankruptcy.

Big income is not a guaranty of financial security. It is not how much you earn, but how much you save that count. Even if you earn a million dollars a year and spent more than one million dollars within the same period, you will end up financially broke.

Those with big income went financially broke due to their luxurious lifestyles. When their income was small they were able to live in a simple living, for they only purchased things that they really need.

However, as their income increased, their expenses also increased, because their basic needs have changed to include their wants like: vacations, going out regularly to dine at expensive restaurants, and celebrated lavish birthday parties.

Moreover, they purchased luxury cars, big house (more than their family needs), attended parties regularly and bought expensive gifts, clothes, jewelries, and joined in extravagant recreation and sport activities.

Most of them, after completing the process of credit counseling, consumer proposal or bankruptcy, they are loaded again with debts because their habit of indiscriminate spending to sustain their exorbitant lifestyles never changed. No wonder many of them filed multiple consumer proposals or bankruptcies.

Your big income could not help you achieve financial security, if you do not know how to manage your money. Ideally, you have to save at least ten percent of your income and invest it in a safe investment vehicle. You cannot do that, without preparing a budget.

A budget should only include basic needs: food, clothing, shelter, utilities, children’s education, transportation, economical vacation or entertainment and miscellaneous expenses. Whatever is the surplus income should go to your savings for “rainy days” so to speak and for safe investment.

To attain financial independence, discipline yourself not to be influenced by your peers, relatives and friends who live extravagant lifestyles and not to buy items that are not included in your budget except for emergency purpose only.


Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, securing 1st and 2nd Mortgages and Mediation to resolve Financial Dispute to save time and money going to court, call 905-970-0439 or visit



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