At $150,000, I’ve found that people stop tracking expenses
This often leads to financial trouble because while $150k is a very good income, it doesn’t allow for the kind of unfettered spending people assume — especially people who are making this income for the first time (like driving a Ferrari for the first time)
Why this number? It could be because $150k taps into some psychological threshold, or people making 150k are busier or some unknown reason. I suspect the first
The lesson: You DON’T need to track every expense. You certainly don’t need a budget. But you do need to know your 4 key numbers (Fixed Costs, Savings Rate, Investment Rate, and Guilt-Free Spending Number) and you should track your key variable expenses, which are almost always fun (eating out, concerts, travel), groceries, & kid expenses
Guess the income at which people stop tracking most expenses