Young Aussie reveals one problem with earning a six-figure salary
One Aussie has revealed that there’s a massive downside to earning more money, leading to people being “trapped” in six-figure salary jobs.
One Aussie has revealed that there’s a massive downside to earning more money, leading to people becoming trapped in six-figure salary jobs.
Twenty-six-year-old Sienna Mallon recently revealed that, after moving to Central Queensland and securing a job in the mining industry, she’s now earning $100,000 more than she previously made when she was working in Victoria using her university degree.
Ms Mallon explained in a TikTok that, while she was happy with her increased wage, there’s one thing no one tells you before you take a lucrative gig.
“The term is called golden handcuffs and it is a term that means once you’re here and earning big money, essentially it is impossible to go back,” she said.
The six-figure worker explained that once you start earning more money, you start living on that wage and it often becomes challenging to backtrack in lifestyle.
“If you start earning $200,000 a year, you start living as if you’re someone that earns $200,000 a year,” she said.
Ms Mallon said that people often get sucked in to buying big ticket items once the dollars hit their bank accounts.
“You start to live within these means and you see people buy jet skis, boats, going on really fancy holidays and buy holiday houses and everything,” she said.
The 26-year-old explained that she can see how easily it happens because she now believes she’d struggle to live off $100,000.
“I was talking about the other day how a $100,000 salary would be really difficult to live off if I had to move back to the city, like almost impossible to live off, and that is insane,” she said.
Ms Mallon explained that she recognised that $100,000 isn’t the average wage in Australia, but once you start earning the big bucks, it does become “difficult” to comprehend living on less.
“If you start not liking the culture, if you start not liking the lifestyle, trying to make the decision to go back to the lifestyle you once came from, can be really hard,” she said.
The worker said that she knew it wasn’t the most terrible issue faced by people, but she still thought it needed to be spoken about.
While her position is a very privileged one, it is no secret that the cost of living crisis has pushed Aussies to be more money-focused out of necessity.
Mortgages and rents have increased, along with the cost of food, fuel, power and water and, according to the Australian Bureau of Statistics, the average yearly salary in Australia is about $94,000.
Financial adviser Alex Jamieson said earning more typically means spending more, and that is how the cycle starts.
“The old adage, the more you earn, the more you spend, is very true. It is very difficult to go back to earning less when you have become accustomed to enjoy the lifestyle that more money brings. This is not only a trend, it is a fact,” he told news.com.au.
Mr Jamieson explained that this is how people get “trapped” in careers that don’t actually bring them joy.
“This is why people get trapped in jobs they don’t like because their spending and debt cranks up the more they earn. It is difficult to escape these spending habits, lifestyle and debt on a lower income,” he said.
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The financial adviser said you need to switch your mentality from spending to saving to not get trapped in a job just for the money.
“My advice to people is simple. The more you earn, the more you should save. Use increased revenue to grow wealth, not debt. Learn the benefits of compounding and passive income. Get good financial advice,” he said.
“You will end up with more money and working less doing things this way – than just having to just keep working to bring in the money.”
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