Obviously there is a direct correlation between earnings and spending. To paraphrase Mr Micawber, ensuring that you don’t spend as much as you bring in, is the path to success and happiness.
There are many people out there who believe that the only way to be successful – at least financially – is to earn a whopping salary. But even if you do, if you cannot control how much you spend and on what, the success and happiness that you crave will prove to be elusive.
Now that is not to say that it does not matter how much or how little you earn, just so long as you don’t spend it all. Clearly, there is a level of income which is necessary for most of us to be able to get by in relative comfort, without struggling constantly to make ends meet. But the point is, that this level of income may be considerably less than the six figure salaries we are all conditioned to believe mark you out as successful.
Take for instance someone in a good salaried position who decides to leave the comfort of a good steady job to strike out on their own Self-employment can be an exciting adventure, but it can also be quite scary. For many starting off on a new venture means having to adjust to a lower income, obviously in the hope that further down the line things will improve to the extent that their new venture will bring an improved salary and working conditions. However notwithstanding the initial drop in salary, most self-employed people will tell you that they enjoy life more. It’s possible to make adjustments in your lifestyle and outgoings to meet your reduced income.
So at the end of the day it would appear that so long as you have at least a median level of income, the amount you spend each month may be more important than your actual income in determining your future contentment.