Debunking the 'earn more vs. save more' argument

As a person begins to earn money, he or she could be thinking of either earning more or saving more. For years, the argument about whether one should earn more or save more to become financial independent has ruled the minds of those in the workforce. 

Image source: abi.org.uk

On the one hand, the "earn more" side suggests that the best manner to experience financial freedom is by having a larger income. If one is an entrepreneur, there is no upper limit to this idea. On the other hand, the "save more" team tells individuals that saving more and spending less is the most sufficient way to become financially independent. The statement that one would spend more if one earns more is based on behavior and mindset; its counter-statement says that it is easier to save as one earns more is focused on math and logic. As both are correct, this debate shall be put to rest as people must only focus on widening the gap between income and spending. 

To be financially free, a person must widen the gap between income and spending, which can be achieved by earning more and saving more at the same time. Make the gap as wide as possible. As the gap becomes wider, create a cash flow. Investing in a cash flow means investing in something that generates wealth. 

Being frugal and business-minded will help one reach the goal of becoming financially independent. Earning more and saving more must be done together, rather than having each fight against the other.

Image source: onlineincome.today

Barry Bulakites is the co-founder, president, and chief distribution officer for Table Bay Financial Network, Inc. He is a recognized innovator in the financial services industry, being responsible for platforms that serve the retirement marketplace like America’s IRA CentersTM and America’s Tax SolutionsTM. For more financial tips, visit this blog.

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