Why High-Income Earners Stay Broke, According to John Liang
Jordan Rosenfeld
Wed, January 7, 2026 at 8:13 AM PST 4 min read
The six-figure salary has long been aspirational as a mark of a high income. While that’s still true, depending on where you live, a high income doesn’t always equal financial security.
In a recent video, money expert and YouTuber John Liang recently explained why some high earners end up “broke.”
Liang’s first and primary reason high earners can end up broke is lifestyle inflation. “The minute that the money coming in is equal to the money going out, that hotshot lawyer is no better than a high school kid flipping burgers at McDonald’s,” he said.
It’s typical that as soon as people earn a little bit more money their tastes get a bit more expensive, from a new car to dining out more regularly. However, this sets even high earners up to live paycheck to paycheck. And even missing a single paycheck for someone earning top dollar can mean bills fall through the cracks. It also means you need to create an even bigger emergency buffer.
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This problem is not just related to spending more, Liang insisted, it’s about constantly striving to “upgrade your life.” He called this “the hedonic treadmill of modern-day America.” It’s easy to get stuck in that cycle.
If you don’t acknowledge your previous baseline, you’re never going to be satisfied at best, and at worst, you’re actually setting yourself back financially, he said.
High earners who wind up broke rarely stop and say “what is enough,” Liang said. Is it enough to send your kids to private school, to buy a bigger house, to drive a newer car, he said. Each earner has to ask themselves that question, but few broke high earners do.
“If those are the things you truly value, then make a list. And once you get there, take it off and leave it.”
He pointed out that adding more “stuff” doesn’t always equate to more happiness and it definitely can steal financial security. His advice: to value experiences over things. And those experiences don’t have to be trips to the French Alps either — they can be fun hangouts with friends and family.
He claimed this philosophy is not just anti-consumerism but a higher-return investment through what he calls a “memory dividend.”
“People get significantly more satisfaction and enjoyment from a shared experience.”
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