April brought Financial Literacy Month – a good time to look at something many people miss when talking about money. Having a big paycheck doesn't guarantee you'll be okay in retirement. Surprisingly, many top earners struggle financially despite making serious money.

The numbers back this up. A CNBC report shows that late payments have jumped 130% in two years among people making over $150,000. Even more shocking: a family earning $500,000-$600,000 a year recently called Dave Ramsey's show because they're burning through every penny of their massive income, spending $30,000 monthly.

So what's going on? 

Making money and managing money are completely different challenges.

Financial Literacy is About More Than Income

The disconnect between earning big and being financially secure is what experts at ETF Trends call the "wealth paradox." Many high earners focus on buying stuff now rather than building something for later.

Look at these stats:

• 32% of households making $150,000-$283,000 don't bother with retirement planning
• Only the top 1% of earners save a healthy amount (around 38% of their income)
• The rest of the top 10% only put away about 12%

The math doesn't care how much you make. If you earn $500,000 but spend $501,000, you're still going broke. A big salary gives you more chances to build wealth, but without good money habits, it vanishes fast.

This makes more sense when you look at what people buy. That $50,000 watch takes 10% of your annual income even if you're making half a million. Fancy cars, second homes, and keeping up with wealthy friends can eat through even huge paychecks, leaving nothing for the future.

Getting Smarter About Money

Good money management starts with one basic idea that works for everyone: you build wealth when you spend less than you make.

Money habits that actually work, regardless of what you earn:

1. Try the 50/30/20 approach: Spend 50% on needs, 30% on wants, and save 20%. This works whether you make $50,000 or half a million.
2. Put tomorrow ahead of today: A recent Yahoo article quoted Dave Ramsey telling that high-earning couple: "do a detailed budget with your spouse and come into agreement on what we want to give, what we want to save, and what we want to spend." Give every dollar a job.
3. Buy things that don't lose value: Invest in stocks or property instead of stuff that's worth half as much the minute you buy it, like luxury cars or designer clothes.
4. Spend less than you earn: No matter your salary, keeping expenses below income is the foundation of financial success.
5. Pay yourself before you spend: Make saving automatic by moving money to investment accounts before you get a chance to spend it.

Being smart about money doesn't mean mastering complicated investments or tax strategies. It's about basic behaviors that work at any income level. Someone making an average salary who saves regularly often ends up wealthier than someone making six figures who saves nothing.

Savvly Supports Your Retirement Goals

Building a solid retirement takes smart planning and sticking with it over time, no matter your income. Savvly offers a market-based approach to retirement that helps people at all income levels grow their money reliably.

Savvly helps tackle retirement challenges that trip up even high earners by:

• Showing you clearly what you'll need and where gaps might exist
• Creating income that grows with markets but stays steady when you need it
• Working with whatever you've already saved

Want to make sure your retirement plans match what you're capable of? Take our quick retirement quiz to see how Savvly compares to what you're doing now, check your projected retirement income, and discover if Savvly might strengthen your retirement outlook.

Getting Started

Just a few minutes today could completely change how your retirement looks tomorrow—no matter how much you make.