Comments on: Saving Money vs. Making Money

By: Derek Chamberlain

Derek Chamberlain — Mon, 28 Oct 2013 11:07:59 +0000

Simon,

Great points. I think one has to be careful though. There are plenty examples around us where folks make more money only to get further and further into debt. I think you’re correct in saying that it is a two-pronged attack. You really have to be good at both to get ahead financially.

By: Simon @ Modest Money

Simon @ Modest Money — Sun, 27 Oct 2013 19:58:01 +0000

While in reality a two-pronged attack is the best where you make more and save even more, if I had to chose I would go with making more money.
Let’s face it…there is just so much that you can cut back on…there is a limit. Two, it requires lots of discipline and effort which honestly is lacking in most people otherwise we’d be have a higher savings average as a nation. Third, it can be an emotional battle cutting back on some things we love.
Making money of the other hand, the limits are mostly in our imagination and just how hard we are willing to work! Everyone pays taxes whether you are making more or less…they better tax me when I have more to show for it at the end and secondly, there are creative and legal ways to minimize ones tax burden…the rich end up paying way less tax than the rest of us!

By: Derek Chamberlain

Derek Chamberlain — Wed, 23 Oct 2013 11:00:10 +0000

MakintheBacon,

It sounds like we’re in exactly the same boat. I’ve focus a lot of saving over the past couple of months and have made some great strides there. Now, I’m turning more of my attention towards making money. For us savings bugs, it is a lot hard to make money – I agree!

By: MakintheBacon

MakintheBacon — Wed, 23 Oct 2013 02:34:49 +0000

I prefer saving money because I find it easier to do compared to making more money. However, I feel I’m at a point where I am quite disciplined with saving and am now looking towards making more money, which is not always the easiest thing. Making money can also take some time and take up more of your time.

By: Derek Chamberlain

Derek Chamberlain — Tue, 22 Oct 2013 12:31:10 +0000

Hank,

I see it a little differently. If I cut out cable and save $100/year, this is a savings into perpetuity. This could be put into investments. You’d have to earn an extra ~$130 a year to equal the same amount due to taxes. For most of us, a raise will be much larger than $130 per year hopefully, so it may be more easy to come by…

By: Hank at Money Q&A

Hank at Money Q&A — Mon, 21 Oct 2013 22:37:07 +0000

That’s a very interesting breakdown. One thing that I would add though is that earning a higher salary has a compounding effect. While you will be paying more money in taxes, your total earnings will be higher than the one time budget change. You’ll be able to invest your new earnings. But, then again…I guess it depends on what you do with your $100 in savings from reducing your bills too. I could see the value both ways.

By: Derek Chamberlain

Derek Chamberlain — Mon, 21 Oct 2013 16:00:44 +0000

Kevin,

I tend to agree – I naturally default to saving. I think it’s almost a two step process. First you develop good habits and practices to living below your means and spending less. Then, once you’ve optimized that to death you move onto trying to make additional money to up your saving % even more!

By: Kevin H @ Growing Family Benefits

Kevin H @ Growing Family Benefits — Mon, 21 Oct 2013 15:31:54 +0000

From what I have seen the learning how to save is the most important by far.The reason is pretty simple: you have to learn to spend less than your income.

People’s spending always seems to grow with income. You have to learn the savings discipline so that when your income grows you are able to put something aside.