I Make Good Money But I'm Still Broke — and I Know It's My Fault

Dear Franklin,

I'm embarrassed to even write this, but here goes. I make $135,000 a year. On paper that's great. In reality, I'm living paycheck to paycheck. I have $8,000 in credit card debt, a car payment I regret, and about $2,000 in my savings account. My girlfriend makes half what I do and somehow has $40,000 saved. I know the problem is me — I just can't stop spending. I buy coffee, I order food, I see something online and buy it. I know this is stupid. What do I do?

— Marcus, 31

Hey Marcus.

Yeah, that's on you. But you already knew that, which is actually the first sign you can fix it.

Here's the thing nobody tells you: making more money doesn't cure a spending problem. It just gives your spending problem a bigger playground. If you made $200,000 a year with these same habits, you'd have $20,000 in credit card debt and congratulate yourself for making progress.

You're not broke because you make $135,000. You're broke because you're spending more than $135,000. Simple. Boring. True.

The coffee-and-ordering-food thing isn't actually your problem — that's just what it looks like from the outside. The real problem is you don't have a spending boundary. Your girlfriend isn't disciplined because she has more willpower than you. She's ahead because she made a decision about what she wanted money for, and she stuck to it.

Here's what I'd tell a smart uncle: You need to know where your money goes before you can control it. Not someday. This week.

Pull your last three months of bank and credit card statements. Open a spreadsheet. Write down every single transaction over $20. Don't judge it yet — just look. I'm betting you'll find somewhere between $400–800 a month in stuff you forgot you spent on. That's $5,000–9,600 a year just evaporating.

Once you see it, you make a choice: Keep spending like this, or don't. There's no magical third option.

The $8,000 credit card debt is eating you alive in interest. The $2,000 savings account is a joke when you're carrying that balance. You need to stop the bleeding first.

Here's your one move: Cut up the credit cards, pay them off with a chunk of your next paycheck, and switch to cash for discretionary spending for 60 days. Just 60 days. When you hand over actual bills for coffee, your brain registers it differently than a card swipe. You'll see real fast what you actually value versus what you just reflexively buy.

Your girlfriend isn't lucky. She just decided money mattered. You can decide that too. Today, not Monday.

— Franklin

Disclaimer: I'm a columnist sharing perspective, not a licensed financial advisor. For serious debt or investment decisions, talk to a real professional.