Should You Try to Spend Less or Earn More?

Is it better to focus more on reducing your spending or increasing your income?

In some ways, I believe the answer to this question is similar to the answer to another often-asked personal finance question: Pay off Debt or Invest?

The idea of financial freedom is something everyone dreams of. Many of us are at different stages of that journey, but on some level, it’s something we all work toward.

When trying to achieve financial freedom, or even just save some extra money, is it better to earn more or spend less? Well, of course, there are two schools of thought.

Should You Try to Spend Less or Earn More? 

Arrow

This school of thought seems to appeal to some physicians however physicians are mostly notorious for keeping up with the Joneses. Perhaps there’s an expectation of what we feel we deserve after years of sacrifice.

Spend Less

As with anything, there are pros and cons to simply spending less. 1. One can make changes immediately and see effects. 2. Simplicity and minimalism. 3. Frugal habits create discipline.

1. There’s only so much you can cut. You can’t eliminate your basic expenses, so you have to draw the line somewhere. 2. Frugality can lead to deprivation. You may find that life is only about denying yourself the good life, and all you focus on is what you can’t have.

Cons

On the other side of the coin, we have the option of earning more. Why focus on skimping on that $4 coffee? Instead, figure out a way to make double that expense in the same amount of time.

Earning More

1. Unlimited upside. 2. Focuses on a life of abundance and potential rather than a mindset of scarcity and denial. 3. One of the secrets to happiness is feeling like you’re constantly growing.

Pros

1. You must step outside of your comfort zone and be bold about it. 2. You could end up working more and having less time. 3. Earning more to cover your lifestyle doesn’t necessarily require the same discipline that saving does.

Cons

SWIPE UP NOW TO READ MORE