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The biggest takeaway: it's easier to make money than it is to save it, and stacking cash, rather than aggressive budgeting, is the key to wealth.

Denvercoder9 5y ago
Isn't aggressive budgeting a way to be able to stack that cash?
- bdcravens 5y ago
  Maybe (depends on your income and what expenses you currently have). However for many, pouring that energy into an income-creating task will create a larger amount.
cardosof 5y ago
While I generally agree, I think for many people it's easier to cut 10% of their annual spending instead of getting better return rates or a salary raise.
- bdcravens 5y ago
  For the readers of this forum, perhaps, but for the typical person making $40-50k it maybe easier to get a side hustle.
- anigbrowl 5y ago
  That's the sad thing though. While many people do spend their way to poverty, personal finance people almost never seem to address the question of how to negotiate/strategize to get more money in the first place. A lot of people semi-rationally conclude that the way to make money is to look successful by driving a new vehicle, wearing nice clothes, and 'fake it til you make it.'
PKop 5y ago
It is "easier" for people that are capable of becoming wealthy to do so by making money and leveraging their skills to accrue wealth not by hours worked. It is unclear weather it is "easier" for everyone to do so, or possible. And if not, whether they are better off not trying, and instead saving and budgeting.
brundolf 5y ago
It varies widely by person (some people are addicted to spending money), and by career (bumping salary up by a few percentage points is a lot harder in some industries than others), which is part of the problem
- bdcravens 5y ago
  I think there's a distinction between out of control spending and someone with decent expenses. There definitely is no shortage of those with all the streaming services and a new iPhone every year, and less than $1000 in the bank, but I think that's not the portrait the article was trying to paint. Additionally, the article does point out that you may need to reevaluate your career and/or create a side hustle.

Denvercoder9 5y ago

Isn't aggressive budgeting a way to be able to stack that cash?

bdcravens 5y ago
Maybe (depends on your income and what expenses you currently have). However for many, pouring that energy into an income-creating task will create a larger amount.

cardosof 5y ago

While I generally agree, I think for many people it's easier to cut 10% of their annual spending instead of getting better return rates or a salary raise.

bdcravens 5y ago
For the readers of this forum, perhaps, but for the typical person making $40-50k it maybe easier to get a side hustle.
anigbrowl 5y ago
That's the sad thing though. While many people do spend their way to poverty, personal finance people almost never seem to address the question of how to negotiate/strategize to get more money in the first place. A lot of people semi-rationally conclude that the way to make money is to look successful by driving a new vehicle, wearing nice clothes, and 'fake it til you make it.'

PKop 5y ago

It is "easier" for people that are capable of becoming wealthy to do so by making money and leveraging their skills to accrue wealth not by hours worked. It is unclear weather it is "easier" for everyone to do so, or possible. And if not, whether they are better off not trying, and instead saving and budgeting.

brundolf 5y ago

It varies widely by person (some people are addicted to spending money), and by career (bumping salary up by a few percentage points is a lot harder in some industries than others), which is part of the problem

bdcravens 5y ago
I think there's a distinction between out of control spending and someone with decent expenses. There definitely is no shortage of those with all the streaming services and a new iPhone every year, and less than $1000 in the bank, but I think that's not the portrait the article was trying to paint. Additionally, the article does point out that you may need to reevaluate your career and/or create a side hustle.