Rest Confident, Your Money is Safe and Secure at Kirtland Credit Union, a message from our President & CEO. Learn More

We have engaged FORVIS, LLP (Attn: Jeff Rosno, 1801 California Street , Ste. 2900, Denver, CO 80202) to perform member verifications. Kindly compare the balance of your accounts on your December 2022 statement WITH YOUR RECORDS. If balances do not agree, please address your discrepancies directly to FORVIS, LLP. Include your name, truncated account number, and an explanation of the difference noted.  A reply is not considered necessary unless a difference is noted.

Kirtland CU branches and the Member Contact Center will be closed on Monday, February 19 in observance of Presidents’ Day.

Credit and debit card fraud is on the rise. Please monitor your account activity for any unusual transactions. >> Learn more

Kirtland Credit Union will never ask you to provide, update, or verify personal or account information through an unsolicited email, phone call, or text message. If you receive an unsolicited email, phone call, or text message, DO NOT RESPOND. Notify us at (505) 254-4369 or 1-800-880-5328.

If you may experience financial hardship related to the government shutdown, we’re here to help. Call 1.800.880.5328 or visit one of our branch locations for more information.

We're Invested

Retirement, investments, financial planning for every stage of life—learn about it all here at Invested,
a blog from your Wealth Management Advisors at Kirtland Financial Services.

Breaking the Paycheck-to-Paycheck Cycle: Strategies for High Earners

By Kirtland Financial Services

Facebook
Twitter
LinkedIn

The highly sought-after six-figure salary isn’t what it used to be. Time Magazine reported a startling statistic from a survey conducted by the financial insight and advising companies PYMETS and Lending Club which found that 51% of people earning more than $100,000 reported living paycheck to paycheck.

When they explored over 70 cities and how far $100,000 goes after taxes and cost of living adjustments, they found significant differences in the value of $100,000. In the pricier cities, $100,000 is equivalent to the take-home pay of about $35,791 in New York and $44,307 in Washington D.C. On the other end of the spectrum, in Memphis, Tennessee, $100,000 is equivalent to around $86,444.

Regardless of where you live, here are a few simple tips you can embrace to try and mitigate the dependency of living paycheck to paycheck as a high earner:

Create a budget

You may feel like you don’t need a budget if you earn a high income. Being honest and keeping a detailed budget can help you pursue your financial goals. Here are a few steps you can take to help organize your budget:

  • Make a list of your expenses.
  • Identify your monthly income from your job and any side hustles or investments.
  • Calculate the difference between your income and expenses.
  • Determine if there are any expenses you can cut or modify to save money.
  • Create a list of manageable goals to work towards.

Manage your spending

Keeping track of your spending can help you monitor how much money is going out compared to how much money is coming in. This might be one of the most difficult aspects of financial planning. Consider these tips to help you manage your spending:

  • Try living within or below your means.
  • Focus on buying only what you need.
  • Before going to the store, make a list to help prevent frivolous spending.
  • If you feel a need to spend more on lavish things, ask yourself what is it that is compelling you to purchase these things? If you can identify the root cause, you can work on modifying your spending habits.

Save up for big purchases

Consider saving up for big purchases instead of acquiring more debt.

Manage your debt

Debt can be overwhelming and challenging to get on top of. At times, it might seem suffocating, so if you have unwanted debt, consider working to pay it off steadily and avoid acquiring more. There are common strategies people often use to pay down debt. The three most popular methods include:

  • Debt avalanche approach – You pay the debt with the highest interest rate or largest amount first, as fast as possible, while paying the minimum on the other debts.
  • Debt snowball approach – You pay the smallest debt first, as fast as possible, while paying the minimum of the other debts.
  • Debt consolidation – Combine loans into a single payment.

Consult a financial professional

Creating a comprehensive budget, paying down debt, understanding the root causes of why you are spending (especially if you don’t necessarily need to buy certain items), and how to reel in your spending can be complex and difficult to manage. Consider consulting a financial professional who can help you design a strategy and create financial goals to help you work towards breaking free from the paycheck-to-paycheck cycle.

Sources:

People Making Six-Figures Are Living Paycheck-to-Paycheck | Time

How to Budget With a High Income – Experian

How to Make a Budget: Your Step-by-Step Guide – Ramsey (ramseysolutions.com)

Five Financial Strategies for High-Net-Worth Individuals | Kiplinger

Inside the Psychology of Overspending and How to Stop | Personal Finance | U.S. News (usnews.com)

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by LPL Marketing Solutions.

LPL Tracking # 509430

To access your investment account – click the button below. The login page for LPL will open in a new window.

If you have access issues, CONTACT KIRTLAND FINANCIAL SERVICES.

Don't Be a Victim!

You need to know about credit union impersonation scams so you can avoid becoming a victim of these nefarious tactics.

Online, Mobile, and Telephone Banking will be unavailable on Sunday, December 17 from 12:00-5:00 a.m. MST.