When we talk about money, most advice tends to focus on cutting back. Spend less. Save more. Stick to your monthly budget.
And there is truth in that. Controlling how you spend money is a key part of financial freedom. But here is the thing – we don’t hear nearly as much about earning more. And that is a problem.
Spending less without earning more will only take you so far, and if you start to earn more without learning to spend less, then you will pay through the so-called lifestyle creep.
The honest answer is in doing both. Let’s break it down.
Spending less is often the first step towards better finances. It is a no-brainer. You look at your budget, cut unnecessary expenses and start saving money.
Maybe you should stop buying takeaways. Maybe you could ditch the subscription you never use. Try brewing your morning coffee at home instead of heading to the local coffee shop. You can find ways to limit costs on a weekly or monthly basis.
These small changes can lead to more savings over time. Less money going out means you have better control of your expenses – and that’s a big deal if you are trying to pay off debt or prepare for future expenses like a new car, family costs or an emergency.
But there is a limit to how far this can go. You still need to cover your daily expenditure. And at some point, you run out of things to cut.
Here is where the real change begins. If spending less is defence, earning more is your offence. It is how you go from getting by to making progress.
Let’s say you pick up a side hustle that brings in an extra £300 a month. That’s £3,600 a year. Or you land a better-paying job and boost your salary by £5,000. Even an extra hour of overtime each week can add up to hundreds over a few months.
This is where people start to unlock financial independence. More income gives you options. You can save more, invest and occasionally indulge in extra spending. You can plan for future goals or cover unexpected expenses without going into debt.
If your spending stays steady while your income grows, you create breathing room in your finances. That is what makes the big difference.
Of course, earning more only works if you don’t spend it all. Plenty of people earn more money yet still live paycheck to paycheck. Why? Because they increase their spending as fast as their earnings.
This is lifestyle creep in action. You make more, so you treat yourself more. It feels like progress, but you remain financially vulnerable.
You have to keep those good spending habits to benefit from higher earnings. A monthly budget still matters. So does learning the value of what you spend. Otherwise, your extra money disappears.
When it comes to spending less vs earning more, it is not really about picking one. The goal is financial independence, and to get there, you need both.
Spending less gives you control. Earning more builds wealth. Do both, and you will make faster progress towards your financial goals.
Whether you are on your first job or ten years into your career, it doesn't matter. Whether you live in a big city or a quiet town, everyone can take steps to improve their finances, build more savings and afford the life they want.
So yes – cut the costs that don’t add value. But don’t forget to look for ways to increase your income. In the long run, that is what turns “getting by” into true financial freedom.
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