Why do high earners still feel broke? In episode 187 of the Private Banking Strategies Podcast, Seth Hicks, Esq. and Vance Lowe discuss why a raise, bonus, or profitable month doesn’t always improve someone’s finances. They cover cash flow, control of your money, paying yourself first, and the idea of velocity: how often money is put to work and returned to you.
Key takeaways
Earning more doesn’t automatically build wealth. What matters is how much of your money stays under your control. Chasing higher returns doesn’t always increase long-term wealth. Reviewing your recurring monthly payments can show which ones return money to your control and which don’t. Paying yourself first, which Vance describes as at least 10% of new income, can change your cash flow. Velocity of money refers to how often money is put to work and returned to you.
Questions answered in this episode
Why do high earners still feel financially stuck? Often because income moves through their hands without being retained or put to work. What does “paying yourself first” mean? Setting aside a portion of new income before living expenses. Should you chase higher returns to fix cash flow? The hosts argue that control of cash flow matters more than the rate of return. What is velocity of money? How often and how effectively money is redeployed and returned to you.
Chapters
00:00 Intro: Why high earners still feel broke
00:55 Why income alone may not solve it
02:34 Why money may not stay under your control
04:03 Chasing returns vs. who controls the money
05:04 Ordinary expenses and cash flow
08:30 Listing the monthly payments that leave your control
10:05 Paying yourself first
13:26 Velocity of money and the control structure
15:00 A worked example of money at work
18:27 Resources at privatebankingstrategies.com
19:28 Requesting a personalized illustration
20:41 Next steps
Resources
Explore the free guide and e-book at privatebankingstrategies.com, and use the site’s AI assistant to ask questions about the topics discussed. You can also ask a licensed advisor about a personalized illustration using your own numbers. Illustrations are educational examples, not projections of results.
Connect with Private Banking Strategies on social media:
LinkedIn: Vance Lowe – https://www.linkedin.com/in/vancedlowe-rfc-chfc-351479100/ Seth Hicks – https://www.linkedin.com/in/privatebankingstrategies/
Facebook: https://www.facebook.com/PrivateBankingStrategies
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