7 Biggest Mistakes High Income Earners Make

thank you to Hobs for sponsoring this video making six figures at the age of 25 and then multi6 figures at the age of 30 I can hands down look back and say there were so many mistakes that I made along the way and so in this video I wanted to share with you seven of what I think are the biggest mistakes High income earners make and strategies to avoid them before it's too late number one being tied to golden handcuffs this is probably the mistake that cost me the most number of years and it's one of the most common mistakes I see people around me make golden handcuffs is essentially when a company pays you so well that you forget or you sideline what you really want to do it's pay you enough to forget about your path your dreams your vision when I first started my job in banking I was making £35,000 and I remember thinking at the time if I were to do my own thing or change career paths I'd need to earn the same amount to be able to justify the move I looked into a few alternative tears but I was so comfortable with where I was so I just continued to go down that same path and then a few years later I was on six figures and I thought about it again I didn't really like my job at this point I considered switching career paths applying for other jobs doing my own thing I looked into all the options and very quickly realized that I am not going to sustain the level of income that I was on doing something else and so again buried this feeling inside of me continued working with every passing year I got another pay rise of promotion a bigger bonus and year after year year these golden handcuffs got Tighter and Tighter and it was only 9 years in to my corporate career where I took a step back and thought I actually hate what I do I'm earning a good salary but I don't even have the time or the freedom to enjoy it I have very little control or autonomy over my life and my relationship is because I'm always unhappy and I let myself get to that point before realizing that I had the keys to the golden handcuffs all along and what I'm trying to say is that sometimes when you're earning or used to earning a lot of money it can be so tempting to just stay the path but don't make the mistake of letting the fear of losing what you have prevent you from chasing what you truly want don't let it make you complacent if you aren't happy with where you are number two not allowing yourself to spend I know people who have hundreds of thousands in the bank but they're not able to spend their money joyfully when you've got to a good place after years of scrimming and saving and Counting every penny it's then very hard to break out the Habit that got you there even after achieving Financial Security the idea of spending money on yourself or for fun or for Joy it just seems like a foreign concept and requires a shift of mindset from one that is of scarcity to one that is of abundance so something now that I've implemented and I I do I have a fun budget in my tracker and this is essentially a must- spend percentage of my income and I allocate 20% of my income every month on anything that I want activities experiences eating out clothes absolutely anything that way I'm still enjoying my life while I pursue my bigger financial goals it's not just one or the other remember the hard work and the frugality that helped you accumulate your wealth doesn't have to Define your spending habits for the rest of your life it's okay to let go and enjoy your money you've earned it number three being overly dependent on one income stream when you're making a lot of money from one income stream alone it's super easy to just double down on it and become very reliant on it overly dependent on it and up until six years ago I was so dependent on my income for my day job everything my life my flat my car everything would pretty much disappear if ID lost my job and this is a very vulnerable place to be in it's very easy to be riing on just one source of income and just assume that it will keep paying you yeah focus on maximizing what you make from it focus on moving jobs getting a better pay negotiating a salary go for the extra promotions but you still need to have other income streams and do something on the side do whatever you need to so that you're not relying on Justice one income stream because having one stream of income is Too Close To None there are a lot of ways to make extra money outside of your 9 to5 you just need to be a little bit more creative in this video here I talk about the other business ideas and passive income streams that I have as well if you are looking to start your inside business of any sort then one thing that can really help you from the start is understanding and being clear about the market potential your competition and exactly who your potential customers would be I only really thought about this seriously halfway way through my journey and ended up having to change direction on a few things and would have done some things differently if I knew what I know now back then if you want to learn more about how to start a business and you want templates or guides that can prompt you with things to consider from the outset then I would highly recommend hubsports completely free business starter toolkit it comes with a really comprehensive business plan template which will help you with your business your vision establish goals and plan for success to ensure your business idea is viable it also offers a feasibility study template there's also a free business startup calculator that helps you with the financial aspects of starting a business it helps you identify the potential cost associated with starting your business once again this business starter kit hubs sport provides is available completely for free if you want to check it out in the description box below thank you to HubSpot for sponsoring this video the fourth biggest mistake I see high earners make is are waiting too long to start investing according to a 2019 report by UBS investor watch billionaires insights it was called it's noted that as the wealth of someone increases so does their reluctance to spend or invest due to the fear of losing what they've worked so hard to accumulate and the report found that over 60% of high net worth individuals suffer from decision paralysis people prefer especially at that level to keep their money in a bank account because it feels safe especially if they haven't become familiar with the idea of investing once you have an emergency fund once you've paid off your high interest rate debt you need to start making the rest of that that money that you earn work for you but the problem a lot of high earners have is that because they haven't got into the habit of investing they have a lump suum that they're ready to invest but they're now too scared to do anything with it their emotions take over they don't want to lose it they continue waiting and waiting until they think is the best time to get int