Saving is a finite solution. You can only save so much, can only be so frugal. Your power for earning is unlimited with the right resource (you), the right tools (knowledge), and the right force (hard work). That isn’t to discount saving. Saving is an important part of the equation too. But, because of it’s limited ability, it can only be so much a part of your overall wealth and financial independence equation. Do you know what limits savings’ ability? Your earnings. You can only save so much as you earn. If you only earn $8 an hour, you can only save $8 an hour. Far less, really, because who can live on $0 an hour? Not many. So, the more you make, the more you can save.
There’s another side to that, even. The more you make, the more ability you have to make more. That’s the root of the old saying, “It takes money to make money”. While you can actually make money without having much money, the more money you have, the more opportunity you will find to earning more money.
Follow all that learning up with some good old fashioned hard work. That’s it. Just hustle a little. Unfortunately, there isn’t any magic formula for that one. I don’t know how to motivate you to work. I don’t know the right things to say to you to make you want it. You’ve got to provide that part. If you can’t find the motivation to pull yourself away from American Idol for an hour to learn something, or work on making yourself a better earner, there’s just nothing that I can do for you. You’ve got to find that part for yourself.
But, listen. If you’re capable, like me, of getting your finances under control; of learning how to keep a budget, pay your bills on time, and learn from mistakes, there’s no reason you can’t learn how to earn more. You CAN learn how to do something you want to do. You CAN learn how to make yourself more marketable. And you CAN earn more. And, if you do, you WILL tip the scale in your direction. You’ll start to earn more. You’ll be able to save more. And you’ll find that opportunities will present themselves to you.
How are you going to improve yourself today?
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One little item on the frugal side of the ledger: Cut your expenses by a $1 and you’ve got another $1 in your pocket. Earn $1 more, and you’ve got only another ~75-85 cents in your pocket after paying tax on it.
This is spot on. You can only save so much and the only way to earn more is to work harder. You usually have to look outside of your regular job and think of different ways to increase your income without spending too much time. There is a fine line!
I totally have to disagree with Kurt there.
Cutting $1 from expenses only PRESERVES what was already there, it doesn’t create additional money the same way earning an additional dollar ADDS to your current pot. All you are doing is keeping that $1 in your pocket. Even after taxes, the earning of an additional $1 is what truly adds to your pocket’s value.
I don’t know that Kurt is necessarily wrong either. In fact, he makes a pretty good point. Cutting a $1 from expenses is the same as earning another 75-85 cents. Especially if you talk about cutting expenses. Every $1 you cut from expenses is one more $1 that you’ve got to save. But, then, that’s the point of the post. You can only cut expenses so far before you’ve hit that basement floor and can’t cut any more. Then, is when you see that growing earnings is more important.
I agree that saving can only take you so far, but to master becoming wealthy, learning how to save is key. Not spending that money when you increase your income will be what makes you wealthy in the long run, so learning how to save is a must.
This is a great wake up call type post. As a stay at home mom I always had a side hustle – substitute teaching, library assistant, selling crafts I made and selling antiques on eBay (when you could make good money at it b/c nobody had looked in their attics yet!) – and I don’t think my husband and I had enough respect for that income.
Most of us have a hobby or interest that we could turn into some extra income. Once you’ve figured that out, the next problem is carving out the time for your side hustle.
Look for ways consistent with abilities you already have and you’ll be surprised at so many ways to make more money. More income and being frugal go hand in hand!
True, saving money is hard (if you’re not motivated) there’s always this question of ‘how much to save’
I like this in theory, but I would say that in my individual situation, I don’t necessarily agree. I work a job that I love. Could I earn more? Yes. Would I be happier? I’m confident the answer is no.
Great points. I spend too much time saving rather than finding out ways to earn more.
Great post! I’ve been thinking about ways to increase my income and have a couple ideas. I need to get started and learn what the next step is so I can move forward. Thanks for the inspiration!