What is your financial thermostat set for, and why that’s important

I’ve met people earning $700K a year who feel broke. And people on half that who are quietly building real wealth.

The difference is rarely the income. It’s what I call their financial thermostat.

What is a financial thermostat?

The idea comes from T. Harv Eker’s book, Secrets of the Millionaire Mind. A thermostat keeps a room at a set temperature. If it gets too hot, it cools it down. Too cold, it heats it up.

Your money works the same way. You have a level of wealth that feels “normal” to you. Earn more than that and you tend to spend it, give it away or take risks with it. Fall below it and you work hard to get back.

That’s why some people get a big pay rise and end up with the same savings. Their thermostat pulled them back.

Where your setting comes from

Most of it is set at home, long before your first pay cheque.

My dad drove a taxi. My mum was a schoolteacher. Money was a constant source of stress in our house. That shaped how I saw money for years, and it’s why I do what I do.

Your setting comes from what you saw growing up, what you were told about money, and your own wins and losses since.

Signs your thermostat is set too low

• Your income has doubled in 10 years, but your net worth hasn’t.
• Every bonus or RSU vest seems to disappear.
• You feel uncomfortable with debt of any kind, even debt that could build wealth.
• You avoid looking at your super or your investments.
• You’re waiting until you “feel ready” to make a plan.

5 ways to reset it

1. Write down the number

Pick the income you want in retirement and the age you want it. Most of my clients aim for $15K to $25K a month. Seeing a specific number moves the thermostat more than any amount of motivation. How much will you need?

2. Automate before you spend

Decide where every bonus, commission and vest goes before it arrives. Tax first, then the home loan, then super and investments. If the money never hits your everyday account, your thermostat can’t spend it.

3. Spend time with people a level ahead

Your thermostat tends to match the people around you. Find people who are where you want to be, and learn how they think.

Early in my career as a stockbroker, I went to Warren Buffett’s AGM in Omaha three times. Hearing how he thinks about money changed how I think about it.

4. Learn from the mistakes, then move on

Everyone has a bad investment, a missed opportunity or a year they overspent. Look at what happened and what you’d do differently. Then let it go. Fear of repeating a mistake keeps a lot of people stuck.

5. Get a coach

Elite athletes have coaches. Most senior tech executives have one at work. Your money deserves the same.

A good adviser shows you what’s possible with real numbers, keeps you accountable and stops you from pulling yourself back down when things get uncomfortable.

What happens when you reset it

The same income starts building real wealth. Bonuses turn into assets. Debt becomes a tool instead of a fear. And for the first time, you can see the date you’ll be able to stop work.

One client told me it was the first time money felt like it was working for him, instead of against him. That’s the shift.

Who I do this for

My clients are tech executives and sales leaders, aged 40+, earning $400K+ with RSUs or big commissions. Most have at least $500K in super and $1M of equity in their home, and can save at least $4,000 a month above their minimum mortgage repayments.

If that’s you and your wealth isn’t keeping up with your income, your thermostat might be the reason.