It’s quite the dilemma. Some of us are excellent savers and others have a problem hanging on to a penny. But to be financially stable, we have to learn about our spending and how to control it. If we want to maintain our financial independence, we need to figure out if it’s best for us to spend less money or make more.
This all depends on you as an individual. Do you like to save? Do you have a habit of overspending? If you have the ability to save, then spending less is the option you should choose. But not being able to keep even a dime in your wallet means you should make more — or, better yet, learn to budget better.
Here are some keys to figuring out whether to choose spending less or making more money.
Take a Close Look at Your Spending Habits
You know your spending habits better than anyone, and only you are responsible for them. Perhaps you like to shop or play golf. If you want to live a life where you have the freedom to afford these things, it’s important to track your spending and monitor your patterns.
Dozens of apps exist for this reason. And creating a budget is the best way to see where your money is going. Once you figure out how you spend and the amount of money you need to be making each month to fit your lifestyle, you can decide whether you need to spend less or make more.
After tracking your spending habits, you might not be so happy with them. It might be vital to learn to create better spending habits before you can make a decision about spending less or making more. You might not enjoy rethinking your lifestyle, but this is the first step to take if you want to achieve financial stability.
This option is easier than making more money. You’ve already got the money — you just need to learn how to spend it more wisely. If, after taking a close look at your spending habits, you’ve decided it would be best for you to simply spend less, there are lots of ways you can do this.
Don’t order an alcoholic beverage with your dinner. Avoid shopping. Decide whether or not you really need that thing you’re about to buy. Think before you make any purchase.
Spending less money can help you live the life you truly want. When you don’t overspend on things like jewelry and clothes that you don’t need, you have more room to make memories. Going to a concert is one way to make a memory that will last, for example. But before you purchase that ticket, make sure you can afford it.
Other benefits of spending less include seeing results right away, living a simpler life, feeling a huge sense of accomplishment and enjoying your life more. Not to mention the financial security you’ll gain from getting your money under control and not letting it control you.
This might be the way to go if you want immediate results and aren’t able to find ways to make more money at the moment.
The second option is to simply make more money, which often isn’t quite that simple.
Obviously, we all want to be making more money — but when we don’t have our finances under control, there’s really no point. We just end up where we started. So, before you decide that this option will be better for your particular situation, you need to create a solid budget. That’s step number one.
So how can you earn more? If you already have a full-time job, ask your boss for a raise. Perhaps you could find a part-time job or moonlight to gain extra income. You might even consider starting a side business. Look around your house, and if you see things of value that you no longer need or want, sell them. There are ways of making more — it might just take some patience and creativity.
The benefits of making more are similar to the benefits of spending less. You’ll have more financial security, you can enjoy your life more and you have a greater sense of accomplishment. You just need to figure out if making more is an option at this time in your life.
Spend Less and Make More
That’s right — you can do both simultaneously! And this might be the best option if what you want are incredible financial freedom and a lot more savings. This will take discipline and hard work, but it’ll be so worth it in the end.
Still can’t decide which option to choose? That’s okay — go back to square one. Start a new budget, take a closer look at your spending and get clear on your financial goals. Then you can make a smarter decision about whether it’s going to be best for you to spend less, make more or both. You’ve got this.