It may surprise you to learn that high earners, earning a six figure salary is not a guarantee of financial stability or security. A big house, luxury cars and exotic vacations frequently don’t tell the real story. You may be looking at a lot of smoke and mirrors. Often these high earners become victims of their own success.
The costs of maintaining a high flying lifestyle eventually becomes too great and a debt spiral begins. No one is immune. Famous actors and actresses, lawyers, doctors and captains of industry file for bankruptcy just like the working poor living paycheque to paycheque. According to the Wall Street Journal “some high earners end up leading a lifestyle that they can barely afford, saving little or nothing for retirement and living paycheck to paycheck”.
This problem appears to be global, with no sign of letting up. In fact we reported on it last year in two blogs titled “Is Canada’s 1% Immune from Insolvency or Bankruptcy?” and Famous Celebrity Bankruptcies Happen Too. A recent study at Princeton University calls this phenomena “wealthy hand-to-mouth”. The study reports that the wealthy hand-to-mouth behave in many respects like households with little or no net worth. So, whether you’re a high earner or have little or no net worth, if you’re living paycheque to paycheque, you’re in the same boat and your options are the same.
If you are one of the high earners, or just a normal person, the time to end the spiral of debt is now. There is no time to waste. Debt doesn’t go away on its own. You need professional help and a sound plan for moving forward. Contact Ira Smith Trustee & Receiver Inc. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now.
There are alternatives to bankruptcy – credit counselling, debt consolidation and consumer proposals or ultimately bankruptcy may be the answer – for both high earners and normal people. Don’t make living paycheque to paycheque a lifestyle. Call us today and take the first step towards a debt free life.