Frugal Friends Podcast

Episode: "Why You Feel Broke Even When You Make More Money (2026 Edition)"

Hosts: Jen Smith & Jill Sirianni
Date: February 17, 2026

Episode Overview

Jen and Jill tackle the ever-present financial paradox: why do so many of us still feel broke, even as our incomes rise? This episode explores the real economic data behind household incomes, the ever-increasing cost of living, and the powerful psychological forces—like social comparison and money dysmorphia—that drive our perceptions of scarcity. Blending humor, insights from recent studies, and practical tools, they guide listeners toward understanding and improving their financial outlook—without losing sight of what really matters.

Key Discussion Points & Insights

1. Are We Actually Broke? (02:20–06:49)

• Jen and Jill start by examining real median household incomes in the U.S. (around $83,000/year), which typically peak for ages 45–54.
• Notable Quote (03:12, Jen):
  “Most people do increase their income incrementally up until their 50s… I think it should be encouraging… I haven't peaked.”
• They compare these figures to what’s considered a “comfortable” income by state. In high cost-of-living states (e.g., CA, MA, HI), a family of four needs over $300,000/year to live comfortably. Even "affordable" states require close to $200,000/year for a family.
• Reality check: For single adults, the median income may cover “comfort”, but families often face a significant gap.

2. The Role of Social Comparison & Lifestyle Inflation (07:55–16:43)

• Social Media’s Impact: The hosts identify the meteoric rise of social comparison—thanks to platforms like Instagram and TikTok—as a major driver for feeling broke, even among higher earners.
• Quote (09:46, Jill):
  "We, like never before, have access to the world... People are able to be out there showing their lifestyles or what they want you to believe of their lifestyle."
• The proliferation of “normal” people (micro-influencers) flaunting lifestyles normalizes higher spending, even when incomes can’t keep up.
• Quote (11:22, Jen):
  “It's the influencer in the middle that is just this normal person and is now buying... so exorbitant amounts of things. And that is where I think we get a lot of our normalizing... And that's where we get the lifestyle creep.”
• Cycle of Consumption: This rising demand for luxury and aesthetics affects even product availability (e.g. cars are now all high-tech, few “basic” models remain):
  “...lifestyle inflation as a result... is now impacting what brands create and what they don't create, which... just creates less and less choice for the frugal and price-conscious person.” (16:43, Jen)

3. Money Dysmorphia: Perception vs. Reality (19:21–26:32)

• Money Dysmorphia: The psychological distortion where we underestimate (or overestimate) our financial standing compared to our actual situation.
  • Even high earners often feel as though they’ll “never have enough.”
• Quote (21:05, Jen):
  “There's an excessive hoarding and a YOLO mentality, and both are dysmorphia."
• Many make suboptimal financial decisions due to this perception, regardless of objective metrics.
• Having clear benchmarks (like debt-to-income ratio, emergency savings) and talking openly about finances can help recalibrate our sense of “enough.”
• Quote (23:44, Jen):
  “Helping people to see what is reality... and honoring that perception, honoring where that perception came from, while trying to weave in reality... is something that's... exciting to me.”

4. The Power of Perception: How Feeling Broke Drives Behavior (26:32–28:39)

• Citing behavioral studies, Jen highlights how a “scarcity mindset” (the perception, not reality, of being broke) predicts poorer choices and short-term thinking.
• Even those meeting key financial benchmarks often self-identify as struggling.
• Quote (28:39, Jen):
  “It's 20% real and 80% mental.”

5. Rebalancing: Practical Steps to Counter “Feeling Broke” (28:54–34:00)

• Track Your Income (28:55):
  • Don’t just track spending—identify and work on continually increasing your income as part of a responsible, values-based life.
  • Quote (29:51, Jen):
    “I think we have a moral responsibility to be increasing our income... because the people who are obsessed with money, they're going to make it to the top no matter what. If we can be a buffer... we have that obligation.”
• Differentiate Wants & Values (30:45):
  • Not all wants are equal. Clarify your authentic desires by examining your last 90 days of spending with questions like:
    • "What's missing?"
    • "What did I value most?"
    • "What didn’t add to my life?"
  • Use this process to redirect funds toward true priorities, minimize “fluff,” and feel more at ease financially.

6. Dual Realities: It’s Both Harder and More Possible Than Ever (34:00–36:05)

• It is possible to increase income and live a rich, fulfilling life without high spending.
• Expect ups and downs, but don’t let “down years” or setbacks define your financial path.
• Quote (35:08, Jill):
  “It is possible to increase my income... And it is also possible to enjoy life, live a beautiful, meaningful life without spending a ton of money.”

7. Lightning Round: Personal Strategies to Not Feel Broke (41:42–44:54)

• Jen:
  • Leaning into career development by studying for the CFP exam—pursuing “income earning potential” for both personal satisfaction and to serve others.
• Jill:
  • “Filling my day with little luxuries” (e.g., warm showers, a nice mug, tending to plants) to create a sense of abundance without spending.
• Quote (44:13, Jill):
  “Honest to goodness, it is filling my day with little luxuries. Makes me feel like my life is luxurious and it doesn't have to cost money.”

8. Community Moments & Memorable Quotes

• Bill of the Week (37:31):
  Debbie from Texas shares she rode a camel named Bill at the Oklahoma City Zoo for $10—a joyful, frugal experience.
  “Maybe you paid off your mortgage, maybe your car died and you’re happy to not have to pay that bill anymore. Duck Bills, Buffalo Bills, Bill Clinton. This is the bill of the week.” (36:47, Jen)

• Banter about cars of the past (Daewoo, Saturn), and whether simplicity will ever be cool again.
  Quote (16:02, Jill):
  "Now bring back the Daewoo. You know what I mean?"

• Reflections on holidays: keeping Christmas decorations up well past the season as a symbol of life’s real priorities.

Actionable Takeaways

• Track Income & Spending: Don’t settle for just “budgeting.” Actively pursue appropriate income growth while aligning with your values.
• Revisit Your “Wants”: Compare your spending to your true joys and values—not what’s trending online.
• Acknowledge Lifestyle Inflation: Recognize when it’s happening and whether it matches your own goals, not just what’s normalized by influencers.
• Identify Money Dysmorphia: If you feel broke, dig into why—are you truly lacking, or is it a matter of shifting goalposts?
• Embrace Small Luxuries: Find ways to make life feel abundant no matter your income.

Notable Quotes with Timestamps

• Jen (03:12):
  “Most people do increase their income incrementally up until their 50s… I think it should be encouraging… I haven't peaked.”
• Jill (09:46):
  "…now we've got this access to celebrities… It can make us think, well, what am I doing wrong? Why am I not able to take that type of vacation?"
• Jen (11:22):
  “It's the influencer in the middle... And that's where we get the lifestyle creep.”
• Jill (16:02):
  "Now bring back the Daewoo. You know what I mean? Where's the Daewoo?"
• Jen (21:05):
  “There's an excessive hoarding and a YOLO mentality, and both are dysmorphia."
• Jen (28:39):
  “It's 20% real and 80% mental.”
• Jen (29:51):
  “I think we have a moral responsibility to be increasing our income... we have that obligation.”
• Jill (35:08):
  “It is possible to increase my income... And it is also possible to enjoy life, live a beautiful, meaningful life without spending a ton of money.”
• Jill (44:13):
  “Honest to goodness, it is filling my day with little luxuries… Makes me feel like my life is luxurious and it doesn't have to cost money.”

Timestamps for Key Segments

• Are You Actually Broke? Data Deep Dive: 02:20–06:49
• Social Comparison Discussion: 07:55–16:43
• Lifestyle Creep & Scarcity Mindset: 16:43–19:06
• Money Dysmorphia Explored: 19:21–26:32
• Action Steps & Values Check: 28:54–34:00
• Lightning Round—Hosts’ Personal Strategies: 41:42–44:54

Final Thoughts

Jen and Jill deliver an empathetic but realistic look at what it means to “feel broke” in an inflationary, image-driven era. They challenge listeners to distinguish between real financial need and the illusions created by media and our own mental patterns. Their closing advice: Focus on what truly matters to you, pursue ethical income growth, and don’t let comparison—or fear—define your financial future. And remember, even a $10 camel ride can be the highlight of your week.

For more tips or to join the conversation:

• Subscribe to Frugal Friends on YouTube
• Explore their book: "Buy What You Love Without Going Broke"
• Share your own "Bill of the Week" at frugalfriendspodcast.com/bill