Five reasons why high earners still feel broke – and how to avoid it

1. Rising living costs - The soaring cost of everyday essentials, including housing, childcare, transport, energy, and food, significantly reduces disposable income for even high earners.
2. Increased tax burden and fiscal drag - Fiscal drag, caused by frozen tax thresholds, means that as wages rise, more workers are pushed into higher tax brackets, effectively increasing their tax burden.
3. Subscription creep and ‘small’ expenses - Streaming platforms, food delivery memberships, cloud storage, gaming subscriptions, fitness apps and finance plans are all part of modern life, but together they can quietly consume a significant portion of income.
4. Shifting lifestyle expectations - Products and experiences once thought of as luxuries are now considered routine. Higher salaries can often create larger fixed obligations, trapping many professionals in a cycle.
5. Debt and financial anxiety - High levels of debt, including student loans and credit card balances, exacerbated by rising interest rates, further diminish financial comfort.

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Five important reasons why people earning high salaries still feel financially squeezed