Are You Earning More or Spending Less? Plus Helpful Financial Guides

by Silicon Valley Blogger on February 5, 2009

I had a post over at WiseBread yesterday about what it means to live below your means. I got into a thoughtful mood and decided to reflect on a couple of financial philosophies that all of us try to practice in some form or another. I revisited the questions:

They sound like they’re the same thing at first glance, but when I reflect on these questions, I realize they don’t exactly mean the same thing, and that I lean towards the approach of “earning more than I spend” more than I do its counterpart. I prefer to earn more than I spend — meaning that I focus more on income generation than I do on cutting costs, although I definitely employ both tactics in order to build my net worth.

Others of course are much more adept at making thrifty choices, keeping their eye on their spending behaviors and sticking to a well-managed budget. I believe I’m frugal, but I find myself enjoying the challenge of trying to increase my income a bit more than I do my efforts to chase down the best deal (although this is undoubtedly pretty exciting in its own right).

So do you focus on earning more or spending less?

~~ooOoo~~

After dwelling on such deep thoughts, how about checking out this long list of articles I gathered from the financial blogosphere?

Helpful Financial Guides For Troubled Economic Times

I’d like to point out a few great resources from bloggers that I’ve found very helpful, especially during these troubled economic times. Dough Roller has produced what’s got to be the biggest guide I’ve seen on foreclosure, while Craisin’s Blog shares with us a layoff survival guide, which was seconded by Bible Money Matters who rounded up tips and a collection of posts on dealing with becoming unemployed.

In addition, Cash Money Life featured a great roundup on financial advice. Our post on the best financial advice we’ve ever received was included!

Thanks to these creative bloggers for such great lists.

Personal Financial Articles

Recent Carnivals

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Categorized under: Banking & Money Management, Frugality & Budgeting, Money Articles

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{ 23 comments… read them below or add one }

1 rocketc February 5, 2009 at 11:12 am

Thanks for the link to the CoDR.

I try to do both, but I certainly lean toward trying to generate more income than reducing spending. One reason is that we already live so tight, that there are not many areas to cut.

2 Manshu February 5, 2009 at 11:12 am

Thanks for the mention SVB.

3 Ashley @ Wide Open Wallet February 5, 2009 at 11:19 am

Thanks so much for the mention!!

4 Pete February 5, 2009 at 12:16 pm

Thanks for linking my “dealing with a job loss” post. You’ve got a ton of great resources here yourself!

5 Mike Myers February 5, 2009 at 12:16 pm

I definitely earn more than I spend but obviously that is partly due to my current situation. I should try to spend less though and take on that mentality. In fact, I may challenge myself to reduce my average spending month to month.

6 Moneymonk February 5, 2009 at 1:44 pm

I always focus on eraning more because I’m a Capitalist, but as I earn more I save more

7 David February 5, 2009 at 2:04 pm

Just wanted to say thanks for linking back to the Carnival of Financial Goals, and also that I enjoyed your submission on Debt Elimination. It’s a HUGE focus of mine right now, and your tips will be very helpful.

8 watch house February 5, 2009 at 4:21 pm

I always try to spend less… But there are just those times where I see that spending less has given me a nice amount of money saved and so I think to myself: “What did I earn this money for in the first place? ” “That’s right, so I can buy nice things” And I end up spending it all. I always feel horrible afterwards and start saving again. It’s a really bad cycle to get into and a really hard one to get out of.

9 Christine February 5, 2009 at 4:23 pm

I guess I earn more than I spend. My spending stays the same, and I focus on keeping it the same, not on cutting back. Last year, with no thought or budget, I lived on 60% of my take home pay. This year, with minor cutbacks + a 3% raise, 50%. Next year, I get a 9% raise, and it’ll be 45%, and all I have to do is keep spending the same amount every month.

10 Ken Deboy February 5, 2009 at 4:37 pm

Currently both, since my job situation is a little shaky right now. For the most part I try to concentrate on earning more. Frugality can only get you so far…

Cheers,
Ken

11 Patrick February 5, 2009 at 5:36 pm

Thanks for the mention and for submitting your best advice. :)

12 Kristy @ Master Your Card February 5, 2009 at 10:29 pm

I’d have to say I’m a lot like you in the respect that I try to earn more than I spend. I’m actually not very frugal at all. I have to make myself consider my choices, try to trim the fat, and so forth. To be honest, I prefer not having to do that. I prefer making more money then I spend and leaving it at that, though I find value in both suggestions, and employ each of them regularly. But, all things being equal, I’d prefer to focus on the income rather than where to cut my budget.

13 Tigga @ Forex Trading February 6, 2009 at 12:25 am

I would have said I normally prefer to spend less than I earn – I enjoy saving. But in the present economic climate, with no decent returns on saving, I’m just spending! I guess that’s what the government wants to see us do!

14 Shadox February 6, 2009 at 1:07 am

I definitely focus on the income side as well. My reasoning is simple, there is a limit on how much you can scrimp, and at least in theory there is no limit on how much you can earn. In addition, I think the whole idea is to increase your standard of living but not rob your future self to satisfy immediate needs.

15 Miss M February 6, 2009 at 7:08 am

Both, I had to in order to dig out of debt. In the last 3 years I’ve boosted my salary 50% and cut my spending 20%+. I like to work both sides of the equation. If you are a frivolous spender, cutting back won’t be painful and will net big results. If you are already frugal, earning more is the only way to get ahead.

16 the weakonomist February 6, 2009 at 7:16 am

This is a lot like the frugal vs cheap argument I’ve made over on my blog in the past week. I like how rearranging words in the english language allows us to give them new meanings. I must admit my focus is always on making more than I spend.

Perhaps my goal in life is to always earn more than I spend, because I quite enjoy spending my money. By earning more than I spend, I’m still on the right track.

17 tom February 6, 2009 at 9:29 am

I don’t think people should live below their means, keep the lifestyle you have and increase your income.

Why should you live below your means? There is so much prosperity on this earth that it’s insane.

18 Jules @ Money Feuds February 6, 2009 at 3:13 pm

I think mine is a mix of both – I went to lots of school to get some good degrees (which I guess correlates with the “increase income” component). But I am also aware of that income’s limits (most people do have limits at some point, at some degree of expenditure) . So I have specific savings goals based on that income. And a lifestyle that can be sustained within my limits.

Plus, it kind of needs to be both because if you increase your income, you may just increase your lifestyle/spending, too, without even realizing it because know you can afford more and your appetite might grow.

19 Start-Up February 6, 2009 at 3:41 pm

I’m all about increasing my income rather than cutting my spending. I don’t feel like I spend a whole lot to begin with, but I would much rather work harder and increase my income. Life is too short to live on the minimum. It’s a great subject to ponder.

20 nina February 7, 2009 at 10:18 am

I focus on increasing my income coz I want to increase my networth. I also cut my expenses on things that I don’t need.

21 Alison@This Wasn't In The Plan February 7, 2009 at 11:22 am

I like to focus on earning more than we spend, it seems much less restricting than spending less than we earn. But, at the same time, it’s important to not let that spending creep up too much, to the point that it is constantly catching up to what is earned.

22 Cathy February 8, 2009 at 1:11 am

I had this habit of spending every dollar every time cash came in (but that was like..five years ago). I like having extra money on hand/inside my wallet. So I guess I try to earn more than I spend.

23 richerandslimmer.com February 9, 2009 at 12:09 am

I think you have to do both (try and increase your income, and try and cut costs).

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