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When You Make More Money, You Spend More Money


Here’s something that’s been on my mind lately…

At this time last year, we were making less than $1,500/month. Even though our credit cards came out to help purchase groceries and gas, overall we did spend less than we do now that we are making more money.

Some of the spending is due to things that we can now afford and we should try to have to protect our finances for the future, like health insurance. Now I am thinking about getting more life insurance (to make sure that the surviving spouse can live debt-free) as well as getting disability insurance. Last year, we knew we couldn’t afford any of that, so it wasn’t even a thought in our minds.

The other spending is just because we have a little more money now so we can “live life a little” as I guess you would call it. My husband sneaks in Sara Lee bread instead of the store brand even though it costs twice as much, and I don’t complain. We buy fresh fruits more often now and buy more non-ground beef meats. Our thermostat has inched closer to 67 degrees this winter (last winter it was set around 64 degrees). Just little things that I’ve noticed that we have done.

I’ve always heard that when you make more money you spend more money and I can see that happening with us. I think the key here is for us to not go overboard and always spend less than we earn. Spending less than we earn is going to be key to having money to pay off debt and save for retirement once the debt is gone.


  • Reply Quentin |

    I know what you are saying about spending more….but I like to consider “treating myself with a bonus as opposed to a raise”. (what in the heck does that mean??!!)

    What I mean is that it is far better to buy myself an ice cream one day than to buy myself a magazine subscription. Once is a one time shot than makes me feel rewarded for something…the other is a new long term commitment I am signing up for. (the initial magazine received is a real treat….after the first few months it is not such a treat…but the expense is still there!)

    Just a thought, and worth every penny you paid for it! πŸ™‚

  • Reply 3 Things About Money |

    I know what you mean! Every increment up, and I feel like I deserve it, gotta spend it — german dark bread is my downfall as well. I am pretty much living on half my salary as I pay down debt. That said, I’m keeping my eye on the prize, and treating my desire to spend more as an addiction of sorts. Your post was a nice reminder tonight. All things in moderation.

  • Reply D |

    I believe this is only the case, unless you are a miss-manager of funds, when you are living without the necessities. Once you have obtained the necessities for a secure and safe life, you will see that you have more power to eliminate the dead weight expenses and not accrue more.

    The problem is most people aren’t “living” they are just “existing” and this how the “spending more” plays in. When you reach the level of “living”, you are in a better place to utilize and save and not “spend” more.

  • Reply Eva |

    And then there are the times that we make more, only to have to spend more because our situation changes. I’m making $20,000+ more than I was 6 months ago, but we moved to a new city and our housing costs doubled! We knew it would happen, and have adjusted our expenses somewhat, but it’s still a bummer. πŸ™

  • Reply Jessie |

    I even go further than this. I seem to have LESS money than I did when I had a lower paying job. Not only do I spend more on consumer goods, but I take on more long terms debts: a nicer car, gym memberships, etc. Which, if I could do over again, I would not have done. I guess it is good we recognise it now so that we don’t keep the trend going forever.

  • Reply MM |

    You are absolutely right. I think it’s human’s tendency to spend more as we earn more, and I feel it is OK as long as we save even a bigger share of what we earn at the same time.

  • Reply sharon |

    Hi l agree with the fact you spend more as you make more, we were better off when we had one income years ago compared to two now. Our problem is my husband is self employed so income is like a yo-yo. Hard to budget on this , even though we are savers, tired of living check to check. Best advice though l could offer anyone is have the bank take a small amount out of your paycheck every week, and put it into a savings account, you dont miss it and it really adds up for anything you need it for…..

So, what do you think ?