High income does not mean you will not commit. Experts teach you to avoid 4 financial errors and keep your wealth

A high income does not mean that you will not make the same financial errors as others, especially when "wealth" is gradually consumed by high debts and slaughter. Forbes magazine once reported that there are many factors that determine whether a person is rich, including pure assets, family income and residence; in some areas, possessing 500,000 US dollars of net assets may be considered wealthy, while in other areas, even 1 million US dollars does not meet the standard.

A recent survey by financial services firm Equitable defines "mass affluent" as Americans with annual income of $90,000 and above. The survey found that 80% of Americans expressed "concern" about their daily burdens, regardless of income; nearly half of them planned to change their financial habits in 2025 to relieve stress, and nearly 70% of "wealthy people" said they planned to increase their savings by $500 or more per month.

Financial management website Go Banking Rates pointed out that increasing savings is one of the ways to improve financial resources, and it is also necessary to avoid repeated mistakes. Here are four common mistakes made by wealthy Americans and how to avoid them.

1. Underestimate income tax

Nors said that many "wealthy people" did not recognize the impact of increased income on taxes. She said that after higher incomes, more taxes will be required and higher tax ranges will be applied, but they are always amazed at the current tax amount that needs to be paid.

2. Large consumption without considering the relevant costs

Nors said that some wealthy people would want to buy more expensive large items, such as luxury cars or houses. The problem, she noted, is that these commodities are also accompanied by higher spending, such as higher taxes and insurance costs. Whenever customers prepare for large consumption, she would recommend that they discuss with her first to calculate the overall cost.

3. No increase in savings and investment after income increases. One of the benefits of a salary increase is that income increases but expenditures do not change, which means there is an additional income that you did not have before; and one of the best uses is to use it for savings or investments. Unfortunately, the common mistake that many wealthy people make is that they do not increase their savings and investments after their income increases. Nors said this is an absolute opportunity to spend some of the additional income on savings and investments to accumulate wealth in the future.

4. Another common problem that wealthy people often encounter is: they feel meaningful to borrow money to others. Generosity is a virtue, but the premise is that one does not let oneself suffer financially. Nors said that some people who earn six figures a year may become the target of others' borrowing money, thus breaking their own financial plans.

The solution to this problem is to only borrow the amount you can afford, and set boundaries to know who you will borrow, how much you will borrow, and the reasons for the other party to borrow.