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Why a man who earned over $88k a month had total savings of only $13k
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This case shows that high income does not mean high savings if your expenses are equally high as well.
ST ILLUSTRATION: CEL GULAPA
- High income doesn't guarantee savings: A bank director earning $88,000 monthly had only $13,000 savings due to $46,000 personal and $30,000 family expenses.
- Overspending leads to debt: Despite a $2.9 million home, the director took extra mortgages and credit card loans to cover expenses.
- Expenses matter more than income. The case highlights the importance of managing monthly expenses, especially when planning for retirement.
AI generated
A director of a bank drew a monthly salary of more than $88,000, but he had only about $13,000 in his savings accounts during his divorce because his high income would routinely be depleted just from paying for the expenses of his household of four.
His own monthly expenses would come to about $46,000 on average, while his former wife said she and their two children, aged 20 and 18, would need more than $30,000 every month. That meant that almost 90 per cent of his monthly salary would be spent on their expenses alone.
