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Should We Earn More or Spend Less?

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Written by   71
5 months ago

Did you ever come to a point of asking yourself where did your money goes?

Many of us are working on at least two jobs just to earn more. Not to mention some investment activities and side hustles that we have to get an additional income. But despite all of these, there may come a time when we need to ask ourselves, what am I doing wrong?

Image by Andrew Khoroshavin from Pixabay 

I’m sure many can relate to this situation. Let me share with you some useful tips in order to minimize spending and increase our savings.

I am an advocate of earning more or not relying on one source of income for I believe that the more sources of income we have, the better our life would be. One the other hand, I realized that no matter how big our income is, yet we don’t know how to minimize our spending, it is like collecting water in a pail with a hole.

Our Effort is Insignificant Unless We Learn to Spend Less

My salary has a notable increase in 2021 after I was promoted with 5 salary grades in my regular job. It was a whopping 85% increase or almost double than my previous salary. It would have been a good development in my career and more disposable income.

But the problem is my expenses also increased significantly. Some expenses were due to expectations from close relatives who would think that because I was promoted, I already have a very high salary and they can come to me whenever they wanted and I will give them money.

Additionally, my children started to became lenient in their spending habits. They would buy things out of control and they would come to me whenever they are short of money. The utilities also increased because they weren’t so mindful of the things they are using such as leaving the lights even when no one is using or forgetting to turn off the electric fan which keeps running for hours when no one is around.

The frequent eating out and food deliveries also contributed to the increased in expenses.

The result – I ran out of cash and I almost failed to pay the utilities.

Expenses Review and Budget Restructuring

Don’t wait for things to go wrong before doing the expenses review and budget restructuring. Though if you have experienced being out of cash due to higher expenses than what you earn, this is a good start for you.

Many people are caught in the cycle of earning, spending and paying debt. What could be the reason? Simple. We spend more than we earn. I am sharing this video that it can be helpful in identifying the reasons why we spend more than we earn and probably enlighten us to make the right decision that will help us reach our financial goals.

Video Credits: The Humble Penny

Review Our Expenses

Starting today, let's make a list of expenses. It is very timely as we are starting a new month. It doesn’t matter how small or big the expense. Example, milk tea, a new phone, a new bag, new clothes, a bag of laundry powder, bread, shampoo, conditioner, etc.

Classify them as to needs or wants. We can fold the paper in half then we can write all the "NEEDS" on the first half and all the "WANTS" on the second half. From there, we can track every single penny that we spend our money to. At the end of the month, we will be able to tell where our money goes.

Our next step would to analyze what we can do to minimize our expenses. This can be done by creating a budget.

Create a Budget

Having a plan on what to do with our money is a must. We need to identify our priorities. I have written about creation of budget and sticking into it here:

Suggested Reading: Save More With a Small Income

Cut Unnecessary Expenditures

There are many things that we usually buy that we don't really need such as extended warranties, gym membership and cable subscriptions. It's about time to take a look into these and decided which we could give up.

Buy Quality

When trying to save, it does not mean that we should not shop for the things that we need or want. But we can opt to buy quality items that could serve us longer.

Be In Control

I mentioned about those people, relatives or not that are expecting too much from us. People whom we couldn't say NO and would end up taking advantage of the situation.

We could shell out some cash if we have excess money. But what usually happen is that even we only have enough, we are afraid to say no because we don't want to hurt their feelings in one way or another.

It's about time that we slowly train these people that we cannot always give what they need. Saying no is not being selfish but necessary for our own wellbeing.

On the final thought...

Living and having only what we need is called minimalism. Not only that it will save us money but it will also save us time and effort on organizing. It's good if we could get away with having too many stuff that we don't need.

Disclaimer:

The content of this post is not for promotional intent rather for informational purposes only and should not be considered as a financial advice. Similarly, the opinions I have shared are of my own and does not in any way represent the organization I am currently connected with.

Special Thanks:

I would like to extend my thanks to my sponsors, namely: @Talecharm @Unity @Micontingsabit @JLoberiza . I wish you more success with read.cash as well as with other projects you currently have.

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Written for read.cash by Sharon S. Lopez (Cinderella) All rights reserved 2022

Date Published: July 02, 2022

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Written by   71
5 months ago
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Comments

The general rule is to spend less because even if salary is increased and you spend the money lavishly you will face problems. Because new expenses every time will be created.

$ 0.02
5 months ago

Precisely! We must see to it that we don't spend beyond what we earn. thank you for dropping by.

$ 0.00
5 months ago

I try to live in my own means but now I realize I should live under and definitely not over. I just had an overspending a couple of days and it is not good. I'm getting anxious now where to get budget for the days to come lol!

$ 0.02
5 months ago

It can happen to anybody. But the good thing is, we can still change our approach so that we may get a good result. Thank you for dropping by.

$ 0.00
5 months ago

Thank you for this! when it comes to finances, we should be wise and organized. We must focus on what we need. Being organized makes us spend less on unnecessary things.

$ 0.02
5 months ago

Thank you too sis for sharing your time. We should really need to be wise and organize. It's not easy to earn money and it's not good if we will just spend it on unnecessary things. Then later on we will realized that we don't actually need the things that we bought and will just add to the clutter.

$ 0.00
5 months ago

It's so easy for money to fly out the window if we don't set aside for our needs and be grasping at straws when bills are due. And then there is the matter of savings. I found it most effective to set aside the money for what I need to spend on once I get my salary. This way, I will only spend what is left. And I was able to build my savings by setting that aside first, and not last as is the practice of many. Whatever remains, then that's something I can use to "splurge" or buy wants.

$ 0.02
5 months ago

It would be easy if we live alone. We can decide what we want to do with our money. However, if we are surrounded with relatives who are too dependent on us, that's another story. Thank you for sharing your thought.

$ 0.00
5 months ago

I have realized that mostly let's say you are earning $500 and renting a 1room apartment and then you get a pay rise then you start renting a 3-room apartment, so the higher they earn the higher their expenses go up. Some people buy a rolls Royce just coz they afford it, but forget that they should save more not spend more

$ 0.02
5 months ago

That was what happened to me. Though personally, I am very frugal. I don't spend on unnecessary things. But my problem is I can't say no when someone would come to ask or borrow money. Also, they don't believe when I say I don't have money because they can see I have my own car.

$ 0.00
5 months ago

i have the same problem you have, if someone borrows I cant say no I don't know how I will overcome that problem

$ 0.00
5 months ago

Another toxic filipino mentioned. Sad that it has been like this since who knows when, kapag mas malaki ang sahod mo people expect you to help them financially as if wala kang paglalaanan ng pera mo. If sa immediate family members okay pa siguro wag lang sosobra and they should learn how to receive less than what they ask for.

Kami ng husband ko we're trying to lessen ang expenses dn kaso malaki pa dn talaga ang nababawas kesa sa earnings kaya. Sana makabawi kami soon and I may find enough time para makapagwork nako ulit or earn sa ibang bagay naman

$ 0.02
5 months ago

Pag hindi ako makapagbigay sis, sasabihin madamot na ako. Kahit every month naman ako nagbibigay. Syempre binabudget ko rin ang pera at hindi naman maya maya makakapagbigay ako.

Yes, sis. Mas mabuti rin talaga na parehong may work ang mag asawa para di masyadong mabigat ang pag budget.

$ 0.00
5 months ago

this is very timely sis coz we are also in the verge of running out of cash due to our decisions lately... so I am going to apply what you had mentioned here...

$ 0.02
5 months ago

We need to practice it this starting today. Need to work harder and save more. Thank you for dropping by.

$ 0.00
5 months ago

As much as possible, I cut all of the unnecessary expenses ate and always make a budget but sometimes, I also didn't follow it especially now that the price of the goods increases hehe

$ 0.02
5 months ago

That's another issue with our current economy. We need to make every centavo counts otherwise, we will end up buried in debt.

$ 0.00
5 months ago

I created a budget based on the 2 weeks salary of my husband and it really help in tracking our expenses. Spending more than the income will lead to debt.

$ 0.02
5 months ago

that's true. We need to be careful in spending our hard-earned money. Thank you for dropping by.

$ 0.00
5 months ago

Exactly sister we should be careful about our expenses. Otherwise financial burden will be big factor influencing us for violence. I love your ideas dear friends our expenses should be less than our income.

$ 0.02
5 months ago

Thank you sis. With this economic situation that we currently have, we should become a wise spender.

$ 0.00
5 months ago

You gave us a total solution to our spending and budgeting crisis, cinderella. We must always strive to keep our expenses lower than our income in order to be free from financial stress. At the beginning of the budgeting process is the ability to differentiate between our needs and wants. Thank you.

$ 0.02
5 months ago

Thank you for the appreciation. Yes, it should be clear as to whether the expense is a need or a want. We need to start from there.

$ 0.00
5 months ago

Creating a budget will actually save us a lot of wastage cos it's the best idea to overcome the habit of not saving.

$ 0.02
5 months ago

Precisely. The budget plan will be our guide and a reminder that is essential in achieving financial freedom. Thank you for dropping by.

$ 0.00
5 months ago

I already started having a list of our weekly expenses since I have my salary every week. But since I only earn 350 a day it is still not enough for our expenses that's why I have to grind here and in noisecash so I can earn decent amount. I am just happy that I am not into having debts. I only spend what I can afford.

$ 0.02
5 months ago

That's the best practice, spending only what we can afford or spending below our means. Thank you for sharing your thought.

$ 0.00
5 months ago

You're welcome sis

$ 0.00
5 months ago

You are correct. We need to track our expenses so that we will cut the unnecessary spending, in order to truly get a savings. I do it too and it is always challenging.

$ 0.02
5 months ago

That's true especially when colleagues would ask, "sino sasabay oorder kami ng milktea?" But there are ways we could control our self from spending out of the budget.

$ 0.00
5 months ago

Sa ganyan sis nangyayari lang pag payday. May 10% akong nilalaan para sa ganyan, pag naubos na yun 10%, tama na yun hahha. Actually mataas nga ang 10% eh hahaha

$ 0.00
5 months ago

Totally an awesome and helpful content. I like budgeting my expenses . Budgeting is the key to Control expenses. And the increasing inflation demands saving from us to save our life..

$ 0.02
5 months ago

Yes, we need to make a budget and follow it closely especially now that we are facing some issues with our economy. Thank you for dropping by.

$ 0.00
5 months ago

I felt attacked about frequent eat outs and food deliveries. I admit, ito talaga ang weakness ko, food pero recently, I learned my lesson. Mas okay kumain sa bahay while I still have my parents who cook food for us. Tipid na, healthy pa

$ 0.02
5 months ago

There's nothing wrong if we have extra money to treat ourselves from time to time. Pero kung naapektuhan na yung finances natin, siguro it's about time to reconsider the way we spend our money. Thank you for sharing your thought.

$ 0.00
5 months ago