A Blast From the Past: Income vs. Savings

Originally written in 2005.
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There are two ways to look at affordability today: raising income or spending less.

To raise your income, you have a few of things to choose from:

· Get a better-paying job
· Be worth more on your current job
· Get an additional job

To save money you already make, there are limitless ways to do it:

· Refine your spending

You may be looking at the above and thinking, “Hey, there’s only one thing listed for the ‘save money’ part, yet the statement says ‘limitless’!”

Just as there are myriad ways to increase your income, they all boil down into the three categories listed. Saving money also boils down to one category, despite the multitudes of ways to go about it (which I won’t go into here, because you should all already have that knowledge and information).

People in frugal chatrooms often ask which is easier—making more money, or changing spending habits. The vote usually gets split 50/50 along income lines. Those who make the most money will say that it’s easier to make more money BECAUSE THEY’RE ALREADY IN MONEYMAKING MODE. The rest of us, who generally prefer not to die with our noses on the grindstone, find it easier to refine our spending—we’re in money-saving mode. It’s two halves of the same coin of making ends meet.

I guess it all really comes down to energy level, and how you care to spend your energy. Those of us who care to spend a little energy NOW will have some left at the end of the race. Those who burn through it all NOW will be on their deathbeds early wishing they hadn’t spent so much time at the office. Some of their kids will be echoing that sentiment from behind bars.

Another way to look at the “energy” issue is this: how much energy are you willing to devote to doing the opposite of what you do now—saving instead of working? Working instead of saving? How much energy do you plan to have for the future, or do you plan to have “things” instead? So many of us turn into couch potatoes from lack of personal energy—most of which we gave at the office (or the last meal—chewing takes energy! :P)

How are you handling your “energy crisis”? Do you own a “hybrid” life (some work, some savings)? Are you waiting for that “fuel cell” to be invented (the secret to aging)?