Its the Holding that is Most Important

Even with a Decent Salaries, Financial Struggles can still Persist

Earning a lot of money can certainly alleviate financial strain, but it doesn’t guarantee financial stability. When you make a high income yet struggle financially, it often means money is simply passing through your hands rather than being retained. It’s a sign of a broken financial system on a personal level—a cycle of earning and spending without building a cushion for the future.

One of my favorite shows, Seinfeld, has a memorable scene about holding onto a reservation, which I think relates perfectly to this concept. People know how to make money, but many don’t know how to hold onto it. And that, really, is the most crucial part of wealth-building—retaining and growing your money. Anyone can make money, but true wealth comes when your money starts working for you.

The Power of Percentages

Percentages provide a universally applicable framework for financial planning. For example, the popular 50/30/20 rule recommends allocating:

• 50% of your income to needs (housing, food, utilities)
• 30% to wants (entertainment, dining out, hobbies)
• 20% to savings or debt repayment.

This rule works well for many people, but for those struggling with personal finance, these proportions can feel daunting. Instead, starting with just 5–10% saved or invested through an automated app like WealthSimple can create a significant difference over time. Treat savings like a non-negotiable bill—it’s paid first, leaving the rest for discretionary spending. Spending until you runs out of money now still leaves you with savings.

Saving Money is like Eating

Nutritionists recommend stopping when you’re 70–80% full rather than eating until you’re stuffed. It prevents discomfort and long-term issues. Similarly, don’t spend until your bank account is empty. Instead, live within your means—spending less than you earn. Pretend you make less by automating your savings or investments, hiding 5–15% of your income from yourself. Your future self will thank you for the discipline.

The Trap of Debt-Fueled Living

Living paycheck to paycheck is challenging, but living beyond your paycheck—through debt—is even worse. Spending 110% of what you earn may feel exhilarating in the short term, but it’s unsustainable and comes with significant long-term consequences.

Credit card debt is one of the worst culprits. High-interest rates compound quickly, making it feel like you’re running on a financial treadmill that never stops. If you’re in this situation, the first step is to cut up your cards—stop the bleeding—and focus on repayment. It’s painful at first but ultimately freeing. Remember, life is short, but not so short that you should live as if there’s no tomorrow. There is a tomorrow, and it’s coming faster than you think.

Living Large While Young

Sometimes, young people land high-paying jobs straight out of school or through luck and opportunity. While it can be tempting to live extravagantly, this doesn’t automatically translate to long-term wealth.

The world is full of enticing ways to spend money, and if you make $100,000 but spend it all, you’re no better off than someone earning far less. I’ve met people who earned six-figure salaries in their 20s and had the time of their lives—lavish vacations, expensive cars, and endless entertainment. Yet, years later, they’re still renting, still working to pay bills, and without meaningful savings.

It’s not wrong to enjoy your money, especially while you’re young and have fewer responsibilities. But there’s a trade-off. Compounding interest is a powerful tool, and the earlier you start saving or investing, the more you benefit from it. It’s essential to strike a balance—live while you can, but don’t neglect your future. The best approach? Do both. Allocate some money for living in the moment and some for investing in your long-term security.

What Do You Value?

Life is full of trade-offs. Every financial decision reflects your values, whether it’s spending on experiences, saving for the future, or investing in assets. There’s no one-size-fits-all answer, but it’s important to pause and reflect on what matters most to you.

I’ve made many trade-offs in my life. Sometimes I chose correctly; other times, I learned the hard way. But one thing is clear: saving money isn’t always the right choice. Life’s simple joys—whether it’s a family vacation, a nice dinner, or even a hobby—are worth spending on, as long as they align with your priorities and goals.

The key is moderation and intentionality. Make room for today’s happiness while safeguarding tomorrow’s security. Your financial decisions, no matter how small, have the power to shape your future. So, what do you value most, and how will you use your money to reflect that?

If you found this helpful and would like help budgeting or investing please email me at taylormckeecoaching@gmail.com