A reporter recently asked how is it possible that people making more than $100,000 per year are living pay check to pay check? And struggling to get by just like you are.
As a bankruptcy lawyer who has helped many people over the years and as a bankruptcy trustee who has supervised more than 15,000 cases in my career I have had the opportunity to observe this many times.
The phenomenon that explains how this happens is what I call “Bracket Creep”
When you get your first job you are thrilled and happy with your new income. So you start to buy things you could never afford before. Then you realize you are tapped out financially. You begin thinking, if I only got that salary increase or promotion or better job earning even a little more everything will be great. Then you get the increased income and you decide you deserve X that you always wanted or that your contemporaries have, so you go out and finance those things whether it is a better car, or apartment or clothing and pretty soon the extra income is not enough to get bye on.
This pattern repeats itself over and over, No matter how much a person earns, they spend it all because they want more .