April 16, 2015

When trying to get your financial house in order, it is wiser to spend more effort cutting spending than working more. Why?

4 thoughts on “April 16, 2015”

  1. Garrett Haag says:

    The main reason behind this is that if you are making more money are will also be spending more money also. Many people will just spend money at a rate at which they make it. If you have a leaking bucket you dont just add more water to it to fix it, you need to plug the leak. If you dont stop your bad spending habits, more money will not really do you as much good as you think it will. You need to manage your money not just coming in but also going out.

  2. Axel Hoogland says:

    Spending most of what we earn is the natural state we find ourselves in generally based on outside influences. If we start earning more while still in this mindset, we will only spend more . If first you rewire your brain to save, that will allow you to save more as you earn more.

  3. Liz Becker says:

    By making more money, people tend to spend more money. As the saying goes “he has money burning a hole in his pocket”. People feel the need to spend what they earn. So, until they put out the fire and patch the hole in their pocket (instead of buying a new pair of pants), making more money isn’t going to get them anywhere.

  4. Tim Holman says:

    I’m not sure it’s wiser to spend less. Is there good research to back that up? Of course it’s good to spend less than you make. Many people do. But there are also many people who don’t have sufficient income to live independently without subsidies from family or government.

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