Some people are of the belief that you should make more money so that you don’t have to scrimp. But when you haven’t yet reached your goals, either way you go, you will have some sacrifices and lack comfort. However, you will not have to go as extreme as the people on some of those extreme saving shows. Really, I don’t advocate digging prenatal vitamins out of trash cans, urinating into jars to save on flushes or flossing with your hair.
Saving Money
Everyone loves a deal. From the richest people to the poorest, we all know that everyone likes to get more for less for everything from multi-billion dollar acquisitions to groceries to office supplies. Some people, however, take “saving” to an extreme and they chase discounts that may not end in good financial decision making. Sometimes saving money doesn’t actually end in saving money. Just like the wealthy can, and in many cases do, get addicted to “the deal.”
The “high”
For example, when the show Extreme Couponing was on, the participants all stood at the register flustered, shaking, nervous and nearly fainting in some episodes. Then, when the final total came back, they laughed, jumped up and down and celebrated as if they had just won a jackpot at a casino. But in reality, no one needs 47 bottles of mustard and 100 bottles of Gatorade. Seriously, most of the savings was on food that no one should even be eating. And realistically, the food might have even gone past the “best by” date before they would ever get to consume it all. Some do it for charity and that is commendable. Some do it for survival and that is understandable. But there are many that do it merely for the thrill. They are addicted to the feeling.
Stocking Up
Extreme Couponers stash of cleaning supplies
Do I believe in stocking up? Yes, to get to the next sale or even beyond, depending on your financial goals but only for items that you will use, share and will contribute to your overall health. Many show participants got the items for “free,” however, if take into consideration the following list, you can see the items were not free.
- The time they spent -researching, making spread sheets, reading store coupon policies (and getting them wrong), creating the store visit schedule, clipping the coupons
- The printer ink
- The paper
- The gas
- The hassle
In my opinion, so much time was wasted that it wasn’t really saving them much of anything.
In fact, if they merely bought a 5 lb. bag of potatoes and prepared them from scratch, they could have saved a ton of time on figuring out how to get packets of instant mashed potatoes for $.25 a piece. Not to mention that the fresh potatoes have more health benefits than the processed packets of instant and are way cheaper pound for pound and a lot less work.
Free and cheap are not always free and cheap. Remember, with the “saving” mentality, you are hindering the “flow” mentality that brings more prosperity and opportunities. This shouldn’t mean paying top dollar for everything but by paying more for something rather than going to great lengths to save money, it means that if you are saving time, which is extremely valuable.
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Make More Money
Conversely, we can look at making more money. Is it really extra? How expensive is your job? For this, I will give an example.
The Illusion
I have a friend, Sarah, that took an extra job because she needed more money for her bills. She got the job at a discount retailer so that she could also enjoy the discount since it would provide extra items for her household and children and help to pay down some of her debts. It turns out that the money largely goes to purchasing items for her teenage daughter. Though she would have a difficult time admitting it, her daughter lacks for nothing in a single parent household. In fact, she is more set up than some households with married parents both working.
You actually need to use the money to better your situation not just to buy more stuff
And, though Sarah holds a high amount of loan debt, credit card debt, owes a large sum to the IRS, etc., she still feels obligated to give excessive amount of things to her daughter. She barely has the money to turn on her heat in the winter and A/C in the summer, but her daughter has a new cell phone, because she “needed” a cell phone for emergencies.
The funny thing is, the daughter rarely asks for most of the items, but gets them because of her mother’s guilt for her single parent situation. She doesn’t turn them down, what teenager would? But she doesn’t really ask either.
True story. So WHERE you work and your level of discipline will determine whether you are going to profit from an extra job.
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Working is expensive
Working is expensive in itself. When you are working in a job outside the home, there are many things to calculate into how much it will cost you.
Here are a few things to consider and ask yourself:
- How many miles or kilometers will I have to travel to get to my job? What will my cost for gas be round trip per week? What are the estimates if gas goes up to its highest price in history? How long will my tires last before I have to replace them? What will it cost? How much will oil changes and car maintenance be? Is there anyone with whom I can carpool?
- What kind of clothing must I wear? What will it cost to purchase and maintain my wardrobe?
- Am I willing to bring meals from home? If not, how much will I need per day to cover consumables?
- Will my pay cover and exceed these expenses, pay my other bills and allow me to put some savings aside?
- Is my will too weak to work somewhere where I will purchase more items than money I will receive in my paycheck?
Note: This is especially true if you are going to relocate and will have to calculate for expenses in a new city. There are calculators and other tools online, however, you will not know the true cost of any place until you live there for a while.
Working from home
Working from home can be lucrative if you are motivated and disciplined. Whatever you choose to do from home probably will have some expense but will take a lot of mental effort to not only do the task that you have decided to do, but it will also need diligence on the side of accounting, marketing, etc. Working from home is cheaper in some cases but more expensive in others.
Analyze Your Situation
Therefore, taking time to analyze whether you are saving or to make more money from your endeavors is necessary. The most successful people are those who incorporate both. Especially when they are starting out, they try to keep expenses low and create extra income in order to invest in other ventures that will make more money.
They may work a side hustle or overtime to pay down bills or save for a special item. Above it all they are on top of what they make, what they owe, what they are saving for and what will work toward achieving those specific goals. And more than money, they are saving time.
There is even more to saving money, making more money and understanding the relationship between time and money. In fact, not WASTING your money is one of the keys to wealth creation.
What do you do to save money? Make more money? Have you analyzed whether it is really helping you? Do you have any questions or comments that you can share with us and other readers? Let us know in the comment section below.
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