Navigating Financial Waters, Empowering Your Decisions.

Budgeting and Savings

Should you spend less money or make more?

With a lot to do, individuals think that they can’t reach their goals since they don’t make enough money.  The problem can either be their paycheck or where the paycheck goes.  If an individual earns a million dollars annually, they become rich. In the same case, if they spend all the million dollars, they become broke. With such consequences, many people get into a dilemma whether to make more money or cut on their budgets as they spend less. Both approaches, either spending less or earning more, have their advantages depending on an individual’s financial goals and their financial position.

Spending less has its impacts on an individual’s finances. An individual can start cutting out of their daily expenses and stay with the money. Spending less gives one the power to save more. People spend less by cutting down their daily expenses as they save for future expenses. This is a challenging approach since, in our lives, there are so many expenses that are needless while one must spend less than what they earn in order to attain a financially sound life. Analyzing one expense helps one find a way to cut those expenses and if not thousands of dollars saved monthly, one would save hundreds. Also, if the budget is tight, it is very practical, making it easy for one’s budget to work.

On the other hand, earning more never brings about an immediate financial change on an individual account. However, it has giant advantages in an individual’s financial life. To build wealth, one has to enlarge their income level to widen the gap between earning and spending. There are multiple ways to do this. Creating a side business is one of the strategies that one can use to enable them to generate more money, which can be used to meet other goals.

On the other hand, one can also find a job and work for over a week or two before they actually start receiving some money. However, when the money starts flowing, it makes more sense. The effort put while staring at a side business will increase income and help one gain more skills. The extra money earned can be used to pay for other expenses rather than cutting them down. Earning more doesn’t result in an eventual goal of owning a business. It can be as simple as earning extra cash that will help one meet the end meet rather than cutting the expenses. Moreover, with extra cash, debts are fully paid, creating room for more investment and financial growth. You can always earn more money and double the income by making good choices, enough luck, and putting in more effort.

Would you rather cut expenses every month or ensure that you create new ways of earning extra cash to cater for other expenses? Whether one chooses to earn more or spend less, both of these approaches have similar outcomes and tend to complement each other well. However, one should first consider their financial positions before settling on one specific approach. At some point, one can focus on earning more while at other times, focus on spending less to increase the amount in their account. I believe that individuals should learn to balance the two aspects. It’s a good move for one to earn more money if they can’t control their spending. As the income grows, the expenses increase, thus increasing the level of spending, resulting in more debts.

On the other hand, if expenses are cut, one will not be able to focus on any extra cash, thus running the risk of cutting out anything exciting. Therefore, it’s all about your priorities. Make an effective decision about your goals in order to determine which of the approaches is the best depending on the current financial situation or the goals set ahead. However, the combination of both approaches helps one achieve the set goals.


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Dr. Paul Etienne is a financial and business consultant in Orlando, FL. Paul holds a Bachelor of Science degree, an MBA and a Doctorate in Business Administration with a concentration in Finance. He has worked for large, well-known financial firms throughout his career. Paul and his wife Vanessa share their home inCentral Florida with one extraordinary daughter named Delaney and a wonderful son named Vansley. Paul brings his longstanding experience and vast knowledge of the financial sector to his audience through his book, podcast, training courses and blogs, in which he aims to help as many people as possible with a wide variety of financial advice. He also blogs regularly on www.madbu.comon subjects ranging from personal finance, debt, budgeting, real estate investing, mortgages and retirement and more. In his free time, Paul likes to play the guitar and code, investing in real estate and helping others to become more aware of their finances. He is a lifelong student of all things and is always learning about new ideas.The future, as far as Dr. Paul is concerned, will see him helping more and more people to learn about managing their personal finance and assets, so that they can remain financially secure with the help oh his book and his budgeting app MadbuMax.