Why are so many people who earn a good income, who would be considered high-net-worth individuals, struggling with debt? We all believe if we earned a bit more, our financial issues would disappear, yet this appears not to be the case.
In this episode of "My Money, My Lifestyle," host Maya Fisher French is joined by certified financial planner Johan Werth to understand why so many high-net-worth individuals are struggling with debt. With debt levels rising faster among higher-income earners than their lower-income counterparts, Maya and Johan unpack whether this is a financial or behavioural issue and what steps can be taken to address it.
Johan shares his insights into the lifestyle inflation that often accompanies increased earnings, leading many to live beyond their means despite substantial incomes. They discuss the impact of rising living costs, the temptation of easy credit, and the societal pressures to maintain a certain lifestyle. Maya and Johan emphasize the importance of financial literacy, tracking expenses, and the critical need for a financial plan to avoid the debt trap.
Listeners are encouraged to reflect on their own financial habits, consider the long-term effects of lifestyle creep, and take proactive steps to build a sustainable financial future. Johan offers practical advice on budgeting, understanding personal inflation, and the significance of starting to save early, even with small amounts.
This episode offers insights into how individuals, regardless of their income level, can break the debt cycle and achieve financial stability. Tune in to discover how you can take control of your financial destiny and make informed decisions that align with your life goals.
✍️ Episode References
Debt Busters:
https://www.debtbusters.co.za/
City Press Money Makeover