Why Most People Stay Broke Even When They Earn More

You’d think doubling your income would automatically make you wealthier. For most people, it doesn’t. I’ve seen it countless times as a wealth coach: salary goes up, lifestyle follows, and savings stay flat. This is called the income trap: expenses grow as fast as, or faster than, income.

One of my clients experienced this firsthand. She landed a higher-paying job that doubled her monthly earnings. Within a year, she had a nicer apartment, better clothes, frequent restaurant visits, and the same debt she had before. The problem wasn’t income. It was the absence of a system.

That’s where the CHIP method comes in. It’s a simple four-stage process to build lasting wealth:

• Create – Increase your sources of income. Side hustles, better job offers, or business opportunities.
• Handle – Manage what comes in. This means budgeting, tracking expenses, and setting limits.
• Invest – Grow your money through assets that earn for you, like stocks, bonds, or business ventures.
• Protect – Guard your wealth with insurance, emergency funds, and proper risk management.

Most people focus only on the first stage, Create, and ignore the rest. That’s why they keep working harder without seeing real progress.

If you want to escape the income trap, start with one small action today: track every peso you spend for the next 7 days. Don’t judge, don’t skip, just record. By the end of the week, you’ll see exactly where your money goes and where you can cut back.

Wealth isn’t about how much you earn. It’s about how well you handle what you have, how consistently you grow it, and how wisely you protect it. Without all four stages of CHIP working together, your financial life will always feel like running on a treadmill — exhausting and going nowhere.

The next time you get a raise, don’t let your lifestyle eat it up. Build the structure that keeps you moving toward freedom, not back into debt.