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I like this: "make more than you spend." Most people say it the other way: "spend less than you earn." But one gives an emphasis on earning more income (more
by abustamam 10y ago
I like this: "make more than you spend."
Most people say it the other way: "spend less than you earn."
But one gives an emphasis on earning more income (more income === more money to save), the other simply limits how much you can spend.
I found that by focusing on earning more, I had to worry less and less about spending less.
- DanBC 10y agoMany people find that their spending increases with earnings, and that even if they're earning above average they don't have any savings or pension sorted out.
- abustamam 10y agoI agree with this too. Saving/"not-spending" is important, but I still think that earning is more important. A tip I once read that made sense to me: - Every raise you get (of predictable income), save 50% of it (so if I get a $10k/yr pay increase, I should increase savings by $5k/yr). - Every bonus you get (unpredictable income), save 90% of it My savings and lifestyle would increase together as I begin to earn more, and all it takes is the discipline to follow those two rules.