{"id":2099,"date":"2016-08-03T00:15:33","date_gmt":"2016-08-03T08:15:33","guid":{"rendered":"http:\/\/www.cultofmoney.com\/?p=2099"},"modified":"2016-08-02T11:10:42","modified_gmt":"2016-08-02T19:10:42","slug":"spend-less-earn","status":"publish","type":"post","link":"https:\/\/www.cultofmoney.com\/spend-less-earn\/","title":{"rendered":"Should You Spend Less or Earn More?"},"content":{"rendered":"

\"IfA 2013 survey from Bankrate reported that 76% of Americans live paycheck to paycheck. A more recent survey<\/a> conducted at the end of 2015 shows that 56% of Americans have less than $1,000 in their checking and savings accounts combined<\/em>.<\/p>\n

If you or your family is in this type of situation there is a way out. It will take work and won\u2019t be easy but with a plan it\u2019s completely doable.<\/p>\n

So if you want to dig yourself out of the paycheck-to-paycheck cycle<\/a> is it better to spend less or earn more? Here\u2019s the answer.<\/p>\n

Spend Less First<\/h2>\n

As a natural born saver I\u2019ve long been on the earn-more side of the equation. This was before I took other types of behaviors into consideration.<\/p>\n

I was in a paycheck to paycheck situation just a few years ago. My spending was already as low as it could possibly be it so made no sense for me to try and cut anymore. (I lived on $20k\/year with two kids.<\/a>) I felt my only option was to earn more and spent much of my energy in that pursuit.<\/p>\n

BUT I can now recognize that my situation is far from the norm. While you might be tempted to jump right into the earn-more category it won\u2019t make a difference until you get ahold of your spending first.<\/p>\n

Here\u2019s why:<\/strong><\/p>\n

If you currently spend all of your money and have nothing left over at the end of the month it\u2019s likely that when you earn more money those expenses will expand. With a higher income you\u2019ll feel the need to have a nicer house, better car and newer clothes. (Or whatever your spending habit entails.) If you don\u2019t first get a grip on your spending you\u2019ll end up in the exact same situation.<\/p>\n

It\u2019s like Parkinson \u2019s Law for money \u2013 \u201cExpenses will expand to match income.\u201d Therefore if you don\u2019t get a grip on your expenses now, earning more money isn\u2019t going to help you reach a point of financial stability or independence.<\/p>\n

Not sure whether or not you have a spending problem? Read this post for some clues.<\/a><\/p>\n

Once you cut your spending back and make it a habit you\u2019ll free up money in your budget and hopefully, break the paycheck to paycheck cycle. If you\u2019ve cut your spending down to mostly basics and still can\u2019t pay the bills without relying on credit you need to earn more (and probably, but not always, downsize what you have.)<\/p>\n

If you are like me and don\u2019t like spending but can only cover very basic expenses on your currently income then you need to earn more.<\/p>\n

Now Earn More<\/h2>\n

After getting into the groove of living within your means and saving a percentage of your income earning more becomes a good strategy for beefing up your savings and reaching your financial goals.<\/p>\n

If you try to earn more before you\u2019ve learned the importance of living within your means you won\u2019t have much to show for your extra work \u2013 making it all fairly pointless.<\/p>\n

And please don\u2019t consider earning more money to be hopeless. It\u2019s not. No matter your skills or level of education there are ways for you to increase your income. You just have to be willing to be creative and work hard for it. Don\u2019t expect someone to hand you opportunities, it\u2019s not going to happen. You have to create your own opportunities!<\/p>\n

Using the Two Together<\/h2>\n

Just picking one strategy, spending less or earning more, depending on what situation you\u2019re in could be all you need to do to get your personal finances back on track. If you want to reach your goals even faster you could consider doing both.<\/p>\n

What side of the equation do you tend to lean toward?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

A 2013 survey from Bankrate reported that 76% of Americans live paycheck to paycheck. A more recent survey conducted at the end of 2015 shows that 56% of Americans have less than $1,000 in their checking and savings accounts combined. If you or your family is in this type of situation there is a way […]<\/p>\n","protected":false},"author":4,"featured_media":2100,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[14],"tags":[594,123,593],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/2099"}],"collection":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/comments?post=2099"}],"version-history":[{"count":0,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/2099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media\/2100"}],"wp:attachment":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media?parent=2099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/categories?post=2099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/tags?post=2099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}