conversation: User (bertynerty): "I've heard the saying that "making your first million is the hardest", implying that it's always hard to start a business but once you have successfully made money then making more money becomes easier (due to the acquired skills, experience, network etc).\n\nSo I'm wondering if this idea applies to any other things too, like personal income (as opposed to business revenue)? That is, most employees make between $0 - 100,000 p.a., but while they may fluctuate within this bracket, most never reach the next level bracket of over $100,000 p.a. Obviously everyone would like to make more money but most people are not able to increase their income that much e.g. I make around $40,000 and nowhere near that amount, even if I could get a few years of lucky promotions and/or salary increases.\n\nDo you think if someone reached "$100K income p.a." would it would change their financial perspective (mindset, approach to money etc.), and would it be like as if a psychological barrier had been overcome and then it would snowball from there? Conversely, does being so far from away from $100,000 make someone more likely to never get close e.g. like me, I am just a regular guy making a regular salary of around $40,000. Though I have thought to myself that that would awesome if I could one day, I don't have any plans. I can't even imagine ever making that much money.\n\nDoes anyone have any experience either way?\n\nNote: The "$100K income p.a." could be any figure and would obviously depend on your industry, location etc. I just used it in reference to myself because it seems so high and so far away from what I've been making for the last few years.\n\nEdit: USD $100,000 and referring to living/working in USA."
  Self: "Money's mental effects are entirely what you let them be.  \n\nThat said, the vast majority of people are very inclined towards lifestyle creep, and so going to $100k just means now you live paycheck to paycheck, but with sums of money and debt where being behind by one bill each month is a huge deal.  So ultimately the psychological effects are actually negative. \n\nTake me and my boss for example.  My income roughly doubled a couple of years ago (I'm in the $60-70k range now).  I still live like I did when I made $13 an hour though.  I live in a very modest house, drive a used car, and only buy something for myself if it really makes sense.  Meanwhile I'm 2 years away from being debt free, and my savings keep growing.  \n\nMy boss on the other hand has grown into the $100-120k range, and with each pay bump has immediately added the new amount to his lifestyle.  My brother is the sole provider for a family of 4, on a less than $30k income, and I see the same behaviors from both of them.  Constantly figuring out which bill they are the most late on so that they know which one has to be paid vs. can be put off a few more days till payday.\n\nIf you're looking for positive mental affects, and skills learned from a salary, I'd say that being poor is better than being wealthy.  Learn to live on $10 an hour, and you're set for life (assuming you have the strength to avoid lifestyle creep).  Learn to live on $100k a year, and you'll be broke no matter how much money you make."
  User (bertynerty): "That's really interesting to hear about the way different people handle getting more money. I've heard stories of guys winning the jackpot and then blowing it all so they went back to zero again as if they had never won it in the first place.\n\nDo you see yourself keeping the same spending habits as your income increases?"
  Self: "Yeah.  I was raised poor in a single-income house.  Mom was a stay-at-home mom, and dad made decent money working construction.  \n\nDad was not good with money, and blew every extra dime he had.  Mom took what money she had access to and budgeted strictly.  The woman could stretch a dollar like you wouldn't believe.  \n\nGetting to see good and bad money management in my formative years solidified my feelings on the subject, and instilled a "always be saving for a rainy day" mentality."
  