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I feel like there is a general misconception that it is those who have limited income that need to pay the closest attention to their finances. Although that statement certainly has truth, I would argue that it is those who have “ample” income that need to take a closer look at their finances and their spending. I hear the above statement regularly in my line of work and there is so much wrong with that mentality. First, it creates an environment of complacency, a habit of mindless spending. Believing that you have enough income to live the life you want often causes you to live life beyond your means. “I can afford that brand new $50k truck”, “I can afford a vacation (or two) every year”, “I can afford to dine out regularly/go shopping/spoil my kids or grand kids”. If you are paying for all of those things with cash, then yes, you can afford it. If you are relying on credit to support your lifestyle, then you are living beyond your means. Which leads me to the final justification statement, “I can manage my credit payments just fine, thank you”. Ok, no one actually says that but we think it. Managing your credit payments is (absolutely) not living within your means. Having credit payments means that you are definitely living above your means and is a very BIG warning sign that you are setting yourself up for failure, or at least much financial discomfort in the future. Which is the second issue with that statement…it sets the foundation for financial failure. Or at least keeps you from achieving all that you can financially. And that’s a really important point. Because, again, in that space of complacency, you can “feel” like life is good, like everything is ok, because you are living a “good” life, but underneath the surface, a storm of debt is building. At some point in your life, you will have to give up some of that standard of living to pay for the lifestyle you financed. And for most, that is a hard pill to swallow. And the third reason I would tag that statement, and that mindset, as dangerous is that it sets you on a path of not acquiring the skill set that is crucial to financial wellness - management skills like planning, tracking expenses, learning to live, at the very least, within your means   something that is not a common trait in our North American society. Or, to accomplish great wealth, learning to live beneath your means. What a concept!! It is the higher income earners that often crash the hardest. And that makes absolutely NO sense because they are the ones that should have the greatest safety net. But there is a belief that comes along with the mentality that you don’t have to worry because you make a good income that almost ensures financial doom. And that belief is “that I can have what I want, do what I want, because I make enough money” combined with a reliance on credit to make that a reality. I’m not saying there isn’t truth in that belief. There is. Of course you should be able to enjoy the “good Life” and do the things you want to do, buy the things you want to buy. But you still need to keep an eye on what your spending and where. And you still need to make good choices about where that money goes. And, this is a big AND, you need a plan for when things change. No, I didn’t say “If” things change. I said “when”. Because if there is one thing certain in life, it is that Things. Always. Change! I’m not saying “Don’t live life to the fullest”. I’m not saying “Don’t spend money on your desires”. I’m simply saying that you owe it to yourself to know where your money goes and to make decisions from THAT place. Because that’s where the best decisions are made!