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By: Phillip McCain
If you need to start saving more money, there are two options available. Don't get confused or fooled by complex finance and money articles online.
To have more money, you need to earn more. Or you need to save more.
Other articles focus on specifics of different budgets, money concepts, ways to save, and other ideas. This article is a foundation point. Don't get lost in the details, let's figure out what you can start doing today to save money.
How do you know which plan you should focus your efforts on? Let's take a look at a few questions to ask yourself to decide.
Can I increase My Money Saving Rate?
Are you a natural spender or saver? If you feel like you are often spending money on things in your life you don't use or need, then budgeting will be your best tool for saving money.
The word "budget" can have a negative stigma. It simply means tracking your income and expenses. Seeing your money on paper can help you track areas you could save more.
Have you been pinching pennies? Finding Deals? Reducing your expenses as much as possible? Then, you are likely reaching the point of diminishing returns. It is easy to fall into the trap of trying to find more money to save when in reality, you should use your time finding more income.
If you have reached the point of spending an extra hour or two finding a slightly better deal, that is two hours you could spend making money.
Should I Focus on Earning More Money?
Once you have started saving enough money, it is time to focus on earning more money.
Luckily, with the internet and new work from home opportunities, it is easier than ever to find a part-time option for a little more money. A few hours of work each week can make a massive difference to your budget.
Companies, like DoorDash, Uber, or Shipt, allow new employees to sign up quickly so you can start earning right away. If you already have a full-time job, then this type of work is a great option because you set your hours. Work only when you want to.
If you are stressed with your budgeting, instead of finding more areas to save, consider how a few hours of part-time income can help you. Often it is easier to work for more money than it is to find that same money in savings.
Get Started Today
If you need more money, start with the basics. Spend less than you earn if possible. If you can't, then find areas you can save money easily. Once you have found some savings, consider part-time work.
Making more money is usually the simplest option to help your budgeting if you find you have already saved everything possible.
Make sure to keep your plan simple and straightforward. Focus on the option that could help you the quickest and easiest.