Everything has its limitations: Maxmize the gap between your earning and spending!

You can only cut back on so much

and

You can only make so much money!

I know everyone talks about both independently as if one is better than the other, and it’s true.

If you save a lot of your money, you’re in good shape.

“Cannot people realize how large an income is thrift?”
-CICERO

If you make a lot of money, you’re in good shape.

But there are limitations to both actions.

You can’t spend absolutely nothing each month. It’s unrealistic.

And you can’t imagine you’ll make a million dollars a year without having worked towards it. It’s unrealistic.

Credit

The best position is if you are doing both, or looking for ways to do both within reason.

What I tend to focus on is the middle: maximizing the gap between making a lot of money and cutting back.

If I made a million bucks a year but spent it all, I am no better off financially than if I made $20,000 a year and spent it all.

I just have nicer toys, probably more debt and stress and an unsustainable lifestyle.


Which one do you prefer? Cutting back, or trying to search out more ways to make more money? :)

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About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.