Escaping The Broke High Earner’s Reality: Why You Still Feel Broke & How to Fix It

Ever looked at your bank account days after receiving a major promotion or bonus and wondered where the heck all that money went? 

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Your paycheck says you should be comfortable, so why does it feel like you're constantly scrambling for cash? 

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If you can relate, you’re most likely experiencing what I call The Broke High Earner’s Reality, that weird, frustrating state where your income reaches a high level, yet you still feel like you’re barely keeping up by the end of each month. 

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The Broke High Earner’s Reality 

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I’ll start by making it clear that this isn't just about making too many coffee or Target trips. The "you're just overspending" or “you need to stick to your budget” lecture usually misses the deeper reality of what's actually happening in your financial life. 

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One of my favorite quotes is by Pat Mesiti. It states ”If you don't know where your money is going, you'll always wonder where it went." And right now, you are doing a lot of wondering. 

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Your money problems aren't just about the numbers and sticking to a budget, although that plays a part in reducing your problems, they're about what's happening above and below the surface. Until you address all parts, you'll stay trapped in this frustrating cycle. 

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Time for a Reality Check 

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If you're nodding along so far, you might recognize these common experiences in your own life: 

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● You struggle to distinguish between genuine needs and impulsive wants

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● Your expenses feel completely overwhelming 

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● Your numbers never seem to add up no matter how many times you calculate

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● Despite earning well, you're still living paycheck to paycheck 

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● Making more money hasn't solved the problem (and might have made it worse)

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● You frequently wonder, "Where is all my money going?" 

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This isn't about intelligence or even discipline in the traditional sense. Some of the smartest, most accomplished people are struggling with these exact issues. 

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Breaking Down The Anatomy of Always Feeling Broke

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Before I dive into why you’re always feeling broke and the exact formula I used for myself and with clients to overcome this issue, I want to share the three key parts involved in money flow and breaking free from this cycle: 

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3 Parts to Healthy Money Flow 

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1. Foundation: This includes the mental and physical systems supporting and keeping your money. You can think of this as a bucket. 

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2. Flow: This represents all of the ways money enters your life. You can think of this as water rushing out of a faucet into the bucket. 

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3. Funds: This is your actual money and how it moves in your life. You can think of this as the water that is collected in the bucket. 

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High earners are typically good to go when it comes to the flow part, but they lack giving enough attention to the foundation which ultimately affects their funds. Following me so far?

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Now, I’m going to dive deeper into the Foundation component (this is where the source of the problem usually occurs for high earners). 

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As I mentioned above, you can think of your financial foundation as a bucket and the water in your bucket as your funds. If the bucket is weak and unhealthy, it will start to crack and your funds will leak out everywhere. When it comes to foundation leaks, there are two different types that cause the foundation or bucket to become weak: Mindset Leaks and System Leaks.

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2 Types of Foundation Leaks 

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1. Mindset Leaks ~ The Invisible Money Drains 

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Mindset leaks are the psychological and systemic issues that keep you stuck. These leaks affect the way you feel, act and think about money. 

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Examples of how these can manifest in your life are: 

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● Emotional spending: Using purchases to fill emotional needs 

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● Fear of restriction: The rebellion against budgeting because it feels like a financial diet

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● Avoidance behavior: Not looking at your accounts because it causes anxiety

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● Impulse spending: The dopamine hit of unplanned purchases 

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● Unclear financial position: Not having real-time awareness of where you stand

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‍2. System Leaks ~ The Physical Money Drains 

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System leaks are the tangible, visible ways your money vanishes. These are the obvious culprits that financial advisors tend to point out and focus on. But they're only half of the problem.

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Examples of how these can manifest in your life are: 

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● Lack of planning: You're winging it month to month with no real strategy

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● Random subscriptions: Those "small" monthly charges that collectively drain thousands 

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● Bank and overdraft fees: The financial equivalent of lighting money on fire

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● No budget: Operating without financial guardrails and boundaries 

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● Lack of automation: Relying on willpower instead of systems 

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These foundation leaks are why traditional financial advice fails for so many successful people. Unfortunately, you can't spreadsheet your way out of an emotional relationship with money even for those of us who don’t mind spreadsheets. 

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The Keep More Funds Formula 

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Here’s the part you’ve been waiting for, how to get your money right. The good news is that you can fix this without giving up your daily coffee ritual. 

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No complicated systems are required, just straightforward steps that actually work.

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‍Step 1: Plug your mindset leaks: 

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● Face the emotional patterns driving your financial decisions. Notice when stress or boredom triggers spending. 

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● Recognize your spending triggers and create specific plans to address them. If online shopping is your weakness, delete those apps from your phone. 

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● Develop sustainable habits that are actually maintainable. Small, consistent actions beat perfect plans you abandon after a week. 

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● Build financial confidence through knowledge and self-compassion. 

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Understanding your money removes the fear that keeps you avoiding it. 

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Step 2: Plug your system leaks: 

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● Create a spending plan that actually feels good instead of one that makes you miserable. Track your expenses for a week and you'll immediately see patterns.

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● Identify and get rid of unnecessary expenses without the guilt trip. Those random subscriptions you forgot about are silently costing you more than you may realize. 

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● Start building your emergency fund, even if it starts small. Set aside $500 first, then work toward one month of expenses. 

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● Set up automated transfers that happen before you can spend the money. Even $50 per paycheck adds up when it's consistent. 

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Step 3: Maintain & strengthen your foundation:

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After you've plugged your leaks, it’s essential to make sure your financial foundation stays solid. The overall goal isn’t just to fix your money once, but to keep it working for you long-term. 

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● Check in with your money weekly even when you feel like you don’t need to. Pick a "Money Date” (Wealth Wednesdays, Finance Fridays, etc.) to review your spending & savings. 

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● Adjust your budget as life changes because they should be flexible not rigid.

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● Increase automated savings & investments as your income grows. 

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● Revisit your goals and be sure to tie your financial habits to your dream life.

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● Keep learning whether it's about money mindset, investing, or budgeting, knowledge will keep you empowered. 

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Taking these actions will take you from an unhealthy financial bucket with multiple leaks to a healthy one that is sturdy and allows you to keep your hard earned money. I’m not promising that it will be easy, but it will be simple. 

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Remember that financial peace should be prioritized over financial perfection. What leak are you going to tackle first? 

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Moving From Overwhelm to Overflow

Understandably, the most frustrating part of this whole situation is knowing you should be financially comfortable. Your income is high enough that money troubles shouldn't be part of your daily experience, but now you know your income is just one piece of the financial puzzle. 

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Until you address both the visible and invisible foundation leaks, you'll continue to experience the symptoms of the Broke High Earner’s Reality – making good money but always feeling broke. 

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Take a moment to imagine checking your bank account and feeling calm instead of anxious, making purchases without the nagging guilt or worry, and finally ending the paycheck-to-paycheck cycle for good. With the right approach addressing both the practical and psychological aspects of your financial life, it is totally possible. 

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If you're tired of feeling like your money is slipping through your fingers, it’s time to take charge and start directing where it goes. 

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If you're unsure where to start or need a little help along the way, I offer practical budgeting support to guide you through plugging those leaks. Together, we can create a strategy that works for your life, so you can feel confident about your finances and finally break free from the cycle of stress and uncertainty.