Earning More Money vs. Spending More Money: Which is Better?

If your financial life isn’t panning out like you’d hoped you have two choices: earn more money or save more money. While both of these options will help improve your finances the key is using them together.

In some situations, though, it’s clear that one method will be far more beneficial than the other. Let’s take a look.

Is it more important to earn more money or save more money?

Saving More Money

I’m all for saving money – by making smart purchases and stashing away as much as cash as possible. But I’ve got to admit that the trendier being frugal becomes the more it starts to get on my nerves.

I’ve always been cheap, not necessarily frugal. There are a ton of things that I’d rather not spend any money on. So, I definitely value saving money.

Developing strong financial habits like making smart purchases and saving a percentage of your income are crucial to financial progress. But at the end of the day being frugal is only going to get you so far.

Take extreme couponing for example. Many extreme couponers were spending an excess of thirty hours per week finding coupons and hunting down deals for products that they probably didn’t need in the first place.

If they “saved” $200 a week on their purchases they earned about $6.67 per hour. In this case is spending so much time trying to save money really worth it? I don’t think so.

BUT if you’re currently a high income earner and can’t make ends meet this is the area you need to concentrate on. If you have poor financial habits earning more money isn’t going to help out your situation.

Earning More Money

When you earn more money you can save and invest more money. Plus, earning more money is limitless.

There are a plethora of opportunities in the US for anyone to increase their income if they’re willing to do so. When you earn more money you also don’t have to worry about stretching your frugality to the core. You can enjoy more of life’s little luxuries without feeling as much guilt.

If you’re currently having trouble making ends meet but you’re already ultra-frugal the answer is clear: you need to work on your earning power.

Which is Better?

Since every situation is different so is the solution. Once thing is certain though: you have to conquer your spending and saving habits before earning more money will benefit you. Once you have your budget under control and have made financial goals then earning more money will be beneficial.

Which do you think is better; earning more money or saving more money?