Ahh, the great debate – Is it better to save as much money as possible and live an extremely frugal life OR seek out side jobs to make more money?
Natalie Bacon over at The Finance Girl discussed this in depth a few weeks ago, and I wanted to share where I stood on this issue.
Based on the title of this post, I’m sure you can guess that I’m more about earning and than saving every penny. I wasn’t always this way, though. In fact, it was just in the last few months that I decided I really wanted to focus on earning more instead of save, save, save. Don’t get me wrong – saving money is good. But, what you save is somewhat (read: very) dependent on what you make.
Ways that I save include couponing (I’m new at this, but will be sharing tips and tricks as I go), purchasing necessary items off of Craigslist (tools for my husband’s job, used vehicles, etc), not paying interest (paying credit cards off EVERY month), buying generic items at the grocery store, buying items on sale only, shopping at Costco and more. I will say, though, that the main way I save is by simply not buying stuff I don’t need. Yesterday at the mall I was browsing through Bath & Body Works, and while I would love to own every single delicious smelling candle, I didn’t buy anything. I was there to walk around with the girls and let them play – not to shop. I try to avoid impulse buying and would say I succeed 90% of the time.
Now, I’m looking to earn more money. I work from home, so my options really are endless as I’m discovering. Of course, there’s only so much I can do in any given day as my two girls are my main priority 🙂 I am excited to explore more income-earning avenues as time goes on, though. My husband is also working for himself, which means the more he works, the more he’s able to make. Once we buy a house, him and I have a few ideas for side businesses that we want to start. We need space for those projects, so unfortunately we can’t start those businesses while living in our apartment.
While both earning more and saving more are absolutely necessary to financial independence, you can’t make millions quickly simply by saving (assuming you make an average salary). You need to bring in more money that way you can save more money. You need to invest your money, develop passive streams of income, possibly own and rent out real estate, minimize your bills and so on and so forth.
My husband and I are very good at saving money and living within our means. Going out to eat is spending $15 at the local BBQ restaurant to feed all four of us! We love cooking at home, going on walks and to the library, watching movies, playing cards, reading and more. This past week, though, BOTH of our cars wound up in the auto shop (more on this later) and cost us $400 (we got off VERY lucky!). Still, that was $400 we could have saved but instead had to go to our auto repairs. Unexpected expenses happen ALL the time, so instead of stressing about not saving as much, I’m changing my game and focusing on earning more!
What are your thoughts? Are you a spender or a saver? Do you focus on saving more, earning more or both? I would love to know!!