Can making more money be a bad thing? The jury is still out on that one.
Because no, I don’t think that increasing your income is “bad,” but I know that there are some additional burdens it does create. To be clear, I’m not pitting one against the other, but as someone who once was so far gone into debt, who now has seen the other side, I can tell you that there are some stark differences.
And that’s what we’ll be covering in today’s post!
I don’t necessarily mean people think you’re cooler or take advantage of you because of your money. I think everyone has a different experience with their relationships and money. But for me, I think I saw a change the most with my family.
I don’t feel like they really took my business seriously until I started making more money. I always felt like they thought it was just some middle school arts and crafts project, which was a sucky thing to feel because I was working really hard.
But the thing I learned is that you can’t change what other people think about you — close to you or strangers. However, you can control how you respond to it, and what you continue to think about yourself. And that’s where you have to focus your attention.
The first time I hit six figures in The Contract Shop® (the business I sold), I had a mental breakdown. It was incredibly overwhelming, and confusing, because I had never been in that position, but also because I was not sure why I felt that way.
I mean…shouldn’t I have been excited? I was, but the overwhelm was much stronger.
I don’t think that people realize that when you get diagnosed with a mental illness (no shame…and P.S., this experience is what led me to find a great therapist and eventually getting diagnosed with ADHD), even happy moments can trigger negative feelings.
For most people they might have a bunch of “what-ifs” but they’re just sort of lying dormant in the back of their heads. But for someone with anxiety, depression, ADHD, OCD, bipolar disorder, etc., the newness and sense of BIG change is a lot to take in.
I don’t want to speak for everyone, this was my experience though.
And someone once told me that owning a business brings out a lot of personal ish to the surface. You go through so many ups and downs that it’s hard for it not to do that.
It’s significantly easier to spend more when you make more, even if you came from more humble beginnings. I had been at a point in my life where I was worried about whether or not I could buy groceries or get gas or even pay my rent. I thought that there was just no way I’d ever lifestyle creep (live above my means) because of my roots.
But it’s tempting to spend that money. And with bigger purchases come bigger consequences. Over the years, it’s been tough to tell myself no to things as a part of budgeting. I’m a recovered shopaholic, after all.
However, a good thing about the years of business I have under my belt is that I did, eventually, learn how to budget accordingly.
And one thing I do now that’s been really helpful is setting money aside for the fun stuff. It’s not realistic to totally cut your fun spending, but as long as you give yourself boundaries and a limit, it’s much easier to stay on track.
Oh, the tax man. Not so fun. But as a business owner, you know that you have no choice but to dedicate a decent amount of time to paying your taxes. And regardless of the end result of your tax return, the more money you make, the more numbers you have to crunch.
That’s why I’m a big fan of paying quarterly taxes early, often, and more than I need to. Why?
Because it’s one less thing I have to worry about. And when I pay more than I need to, I cover the just-in-case chance that I actually owe more than I think I do. If I don’t owe more, it just goes back into my pocket.
It’s like coming home to a clean house after vacation. You can enjoy the relaxation! But when you’re behind on getting those numbers in, it’s more like coming back to a dirty house with dishes in the sink growing something weird on them. It just doesn’t feel good and is best to take care of now.
These aren’t the only things that have changed since I upped my income. Money is a weird thing, and it can really change so much bout your life. In another video I did recently, I talk about five additional ways things change when your income does. Watch it below!