This post is from our regular Wednesday contributor, Erin.
It’s no secret that earning more is the name of the game here on Young Adult Money.
There is a huge emphasis on side hustling, and for good reason.
It’s one of the easiest ways to start bringing in additional income, and who wouldn’t like to make more money?
Making more money will get you pretty far in life, much further than cutting your expenses will.
Which is why it’s a little hard for me to admit that I wasn’t always gung-ho about the idea of earning more.
It seemed so unattainable. For me, it was much easier to cut expenses. I didn’t think beyond the scope of my day job and working overtime.
Well, I’m here to tell you today why that is so wrong, and NOT the mindset you want to be in.
I’ll cut to the chase and say that sticking to spending less, forever, only serves to limit your beliefs. There are a lot of opportunities out there to earn more, you just have to be open to them.
Here’s my case for earning more over spending less.
Stuck On Spending Less
I have been practicing spending less, and frugality, my whole life. From an early age, my parents set an example of only buying sale items, making lists and sticking to them when going to the store, and going the DIY route often.
Everyone in my family also led a very traditional career path, working 9-5, and then retiring.
My dad made extra money here and there fixing computers and designing websites, but I (foolishly) thought he only did it because it was necessary – money had been tight for us. I never knew people actually did this stuff for fun!
As a result, when I graduated from college, my focus was on spending as little as possible. I always looked over my spending and found ways to pay less, but I never turned to the idea of earning more outside of my job. Finding a job after graduating from college had been a challenge in and of itself – I didn’t think getting a side gig was a possibility.
As you can see, I grew up in a bit of a bubble. I truly didn’t know there were so many opportunities out there to earn extra until I started blogging.
There are a lot of people in the personal finance community that thrive off of side gigs. Many of which turn into full-time jobs later on!
However, there was still a nagging voice in the back of my head, filled with doubt. I didn’t think I had what it took to “qualify” for a side hustle, being that normal job prospects for me were so weak.
I mean, I started off making $12/hour as an administrative assistant, and make it too much further than that in two years of working.
Yet, there were people making more than that from their side hustles! I was blown away.
In my effort to spend less and cut expenses, I had put blinders on. I didn’t realize I could actually earn more in order to cover any expenses I had.
DC has mentioned that the income he earns from blogging alone is enough to cover student loan payments! That post is a perfect explanation of how earning more can work for you in terms of affording what you want in life. And let’s be honest, most of us want to buy something every now and again that just isn’t “in the budget.”
Instead of constantly laboring over your spending, wouldn’t it be better to think of how you can make more room to afford things?
After going over every line-item in my budget, I’ve realized we’ve cut as much as we’re comfortable with. That’s the thing about spending less – it’s limited. There is only so much you can do away with. What comes next?
Earning More
That’s what comes next! After a year of blogging, I had seen enough, and decided to become a freelance writer, seeing as fellow bloggers were making a decent living from it. Upon relocating for my fiances job, I figured it was a good time to try it.
Now, I obviously could have done this while maintaining a full-time (or part-time) job, but the motivation didn’t strike until we moved. It was either find a new job in a new city, or make my own way.
It was then that I also realized the power in creating your own path when it comes to your career. Consequently, that also involved setting my own rates, and being able to get paid what I am worth.
This realization has been a huge step for me – it has broken the shackles and chains I had around the idea that I could never be one of those people making thousands a month from working online.
I can.
Which means you can, too. I’m talking to everyone out there who doesn’t believe in the power of earning more, or who thinks it’s too hard.
Yes, it requires a lot of sacrifice, but it is worth it. There is nothing more empowering than knowing you can do something you enjoy, command a certain price, deliver value, and make a living from it!
Let me tell you, nothing felt good about getting paid $12/hr to run to Starbucks for my bosses. I did it, but without much dignity (although I did get a free drink out of the deal, so no complaints there).
Now? I’m my own boss, and my earning potential is unlimited. That is SO powerful, and I know I’m not the only one who has had this epiphany when making the transition from a lower wage job to being a freelancer.
So if you’ve been stuck in what seems like a low-paying, dead-end job, know that there is another path you can take. Choose to embrace earning more, and stop trying to pinch every penny you make.
The bonus of earning more? If you’re anything like me, you might just be able to stop feeling so guilty about making unnecessary purchases.
Even if you wrote one blog post a month for $25, that could cover one nice dinner out, those cute flats you’ve been eyeing, or a bottle of celebratory wine.
If you take it one step at a time, it’s completely possible to build up from there. You just have to believe in yourself. The best thing is, there are so many free resources that you can use to get started! No excuses.
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I’m not saying earning more is sunshine and rainbows all the time; it does require a lot of discipline, motivation, and hard work. However, the pay off is worth it. When I look back at how I had been progressing in my “career,” I cringe.
I realize not everyone is in the same situation, but if you want to improve your financial situation, or get ahead with your goals, earning more is a great way to do it.
Have you found yourself stuck on spending less, and not thinking about the possibility of earning more? What do you do to bring more income in?
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This is exactly what I wrote about in one of my most popular posts about “Pinching Pennies Versus Increasing Income”. You really have to know how to manage what you have first. After that, you need to increase income. And depending on where you are financially, your focus is going to change. After you work and rework your budget so you can “frugal” your way through life, increasing income is the best way to skyrocket your financial situation, including your net worth. I’m a proponent of both. But once you’ve figured out how to spend less, I think you have to focus on earning more.
It’s hard to get rich by focusing primarily on saving money. Making money needs to happen. Yes, it’s harder than simply saving but it’s necessary. I realized this about a year ago. My expenses were as low as they would ever be but I still wasn’t posting huge net worth numbers. I began reading less Pete and more Ramit. …You’re awesome if you know who I’m talking about!
Right on Erin! Saving and spending less certainly has its place, but will only take you so far. It’s the ability to earn more that has the real opportunity to give you a trajectory towards where you want to go in life. It took some time for me to realize that, but once I did and started to actually apply it I wondered why on earth I had waited so long. :)
This is so true. If your income isn’t scalable (i.e. you trade time for dollars) then you need a side hustle. Congrats on finding your side hustle Erin.
Just a thought for anyone else reading this, like Erin explains you don’t need expertise to do something for someone. If you read a good how to article that details a type of activity a business owner needs to do to improve their business (i.e. SEO, Social Media, Facebook ads, etc…) offer it up as a service to the people that either comment on the article or tweeted out the article. They may have liked everything they learned about making sure their on-page SEO was perfect but don’t have the time to do it. That’s when you come in and just ask them if they want you to help them with it. Pretty simple – but of course it requires effort.
I don’t apologize for going after earning more. I understand that cutting expenses is important and it also reinforces what are true wants versus needs but like so many, I have multiple financial goals and in order to achieve them quickly, I require more capital.
Cutting expenses is nice, but the real way to get ahead is to earn more money. if you’re topped out in your day job, it’s time to think outside the box. I see so many people complain about not having enough money, and because I know better, I try to mention ways they could make more. Sadly, lots would rather complain that actually take steps to increase income. If it doesn’t come wrapped up in a big box with a bow, forget it. I get that it’s tough to work a regular job, come home, and do something else besides chill, but it’s worth it.
theFinancegirl Exactly, Natalie! I was stuck on cutting everything for far too long, thinking that earning more just wasn’t in the picture for me. Going through your expenses and cutting them lays a great foundation, but you need something to build upon after that.
firstqfinance I was in the same situation, Will. I had been so focused on saving, but I started enjoying working overtime for the little extra money it gave me. That meant more flexibility. “Less Pete and more Ramit” – ha, I love it!
FrugalRules Glad you had the same experience, John! I feel similarly, and I’m very grateful I’ve experienced how freeing freelancing can be in that regard. While giving yourself a raise can be difficult, I’d rather be in control of it than have someone else decide my earning potential.
Derrick_Horvath Thanks Derrick! That’s a fantastic tip. There are certainly tons of busy entrepreneurs out there that will bookmark pages with good intentions, but don’t have enough time to take action. You never know unless you ask and put yourself out there!
Kassandra @ More Than Just Money Well put, Kassandra. I agree that it’s great to narrow down your priorities and cut everything else, but earning more is definitely the way to accelerate financial growth.
Eyesonthedollar Very true, Kim. It is easy to fall into the trap of coming home and unwinding, and I realize working overtime isn’t for everyone. That’s why it’s important to make your side hustle something that doesn’t feel like work; something that you can look forward to at the end of the day!
Great post! I’ve always been one that wanted to earn more rather than spend less. I like my lifestyle and didn’t want to cut it too much (other than the shopping for unnecessary clothing that is) :) I enjoy eating out with friends, having TV at my home, etc. Instead, I chose to work more and earn more. Great post Erin!
I really like this Erin, and a great story about your own journey too. Focusing on earning more feels like a more ‘positive’ outlook, as it means focusing on growing, developing, adding value to the world, becoming more confident etc etc. Trying to spend less is about reigning in your needs and simplifying, which is also a good thing, but there is only so much you can do, and it could definitely ‘close your mind’ to other possibilities as you highlighted.
I’m so glad you’re recognizing your full potential, Erin! That is indeed powerful. I am all for being smart with your money and making mindful choices, but eventually you reach a point where you cannot cut your expenses any further. And sometimes even some of the cuts you already made are impacting your quality of life. It’s one thing to be careless with money and living beyond your means, then you do need to make some changes. But there absolutely nothing wrong with wanting to be able to enjoy a meal out with friends or take a dream vacation. This is why it is so important to look at ways to build wealth. But a lot of people get stuck thinking that it’s impossible. It’s not, but it does take effort and a big shift in mindset, like you experienced, but it can open doors you never imagined too.
Really crucial post here Erin and congrats on stepping out into the freelance space! :)
I can certainly spend less but would also probably enjoy life less and I find that friends who earn less then me generally have to worry about every $$ they spend, I’ve recently considered moving more into writing/blogging to start off with a side hustle and even look at affliates :)
Great post and this is something I started to realize myself after I started working. I could use the downtime at work, wake up early or stay up late, but if I really worked at it I could make some money on the side without sacrificing time away from. And I’ve been able to do just that. It feels good to have some extra coming in, and with a very stable day job, it feels even better.
It really does take a change in mindset. I think many of us are brought up to think that there are only so many slices of pie to go around so just do the most with what you have. But you can go get some more slices if you want and reap the rewards.
shoeaholicnomore Thanks Kayla! Exactly, it’s about making it work – if you don’t want a frugal lifestyle, there’s nothing wrong with that. Earning more is a great way to cover those “extra” expenses. No one wants to feel restricted.
Jason@Islands of Investing Thanks Jason! I like how you refer to earning more as having a positive outlook. While I’m naturally frugal, I would still like to get to a place where I don’t feel guilty about spending money. I also realize cutting back can get exhausting for a lot of people, so it’s nice to have the option to earn more instead!
ShannonRyan That’s a great way to put it, Shannon. I was stuck in a “worker bee” mentality for so long, and had mostly accepted that fate, so I learned to live on less. I’m very glad I broke out of that mentality, and I hope I can inspire others to as well. Completely agree with the rest of your comment!
mycareercrusade It is nice not to worry about every dollar you spend – you’re very right about that! It’s one of my main reasons for wanting to earn more.
Go for it! As long as you inherently enjoy blogging, it’s a great way to pave the path to earning more. I only say that as it’s a lot more work than I ever thought it would be. =)
thebrokeprof Thanks Syed. Awesome job on making things work for you! You definitely don’t have to sacrifice every moment of your day to side hustle, either. Great analogy at the end, too!
I love this,
The headline says it all.
The next step after mastering budgeting is getting ahead of the money game and out of the rat race!
Imagine yours, your families and your friends lives without the burden of full time employment.
That’s my goal.
Eyesonthedollar Totally right. Even today, when you can learn LITERALLY ANYTHING on your laptop computer people still want to complain about needing resources or help. A gift just isn’t enough anymore.
Before I started reading PF blogs I was all about spending less. I would make cuts in most areas of my life and in reality all I was really doing was just allocating my funds to different areas of my budget. It was like I was rearranging furniture, I never acquired any new pieces I was just shifting around the ones I had. Now that I’ve upped my earning my potential is limitless and it’s very empowering.
Well I suppose another benefit is the ability to travel more and look to give back to the community as well :)
It may be a longer term thing as I’m considering some side consulting as well but the rewards intrinsic and extrinsic will be worth it I’d say!
I can really relate here Erin. For the longest time I really focused on just saving saving saving. It hasn’t been until recently that I really started to think about actually earning more money. Now earning enough side hustle to cover my student loans each month would be really balling. But it definitely takes one step at a time!
I’m hoping that by taking a step back in income with freelance writing, I’ll be able to build a bigger asset — a business — over the long haul.
We’ve definitely pursued the “earning more” angle quite aggressively in our careers. One of the main reasons we’ve moved so many times is to take new positions with higher salaries. While we’re great lovers of frugality, we also absolutely see the value in augmenting our earnings. For us, it’s truly a two-part approach: earn more and spend less. Thanks for this motivation, Erin!
mycareercrusade I’d love to get to the level of being able to consult on things! It seems like there’s a decent amount of money in that. You could always build your blog alongside the consulting business, too.
gaugereckless Awesome! I honestly never thought about early retirement before blogging – no one that I know personally had done it, so it had never crossed my mind. I think it’s a worthwhile goal to go after!
manneredmoney I love that analogy, Jessica! It sounds like we started in the same place. I completely agree with your last sentence – it’s definitely empowering to know that you have the ability to increase your pay on your own. I love knowing that my work is providing value to others, too.
BudgetforMore Having enough side hustle income to cover student loans would indeed be awesome! I’m all about one step at a time, and I think setting smaller goals and working your way toward bigger goals is great. I doubt many people start earning $100/week from side hustling right away. We all have to work up to it.
pfjenna Exactly, Jenna! That’s my hope as well.
Mrs. Frugalwoods I’m personally with you on the hybrid model – after conditioning myself to spend less, it’s kind of ingrained in me, and I don’t mind being frugal. But at the same time, I want to eventually build our retirement funds and not have to worry about money being tight one month. Your approach has obviously paid off!
For me it’s always been about both. At a certain point you will probably reach a spending less cap, but with earning there is unlimited potential. I still have a few areas I could cut back a tiny but, but I REALLY need to earn more right now! :)
I was just meeting with a client who had completely cut her budget to the bones and wasn’t happy about what she had left at the end of the day and that’s when we spoke about side hustles. She has started selling her clothes online and has made a few hundred bucks doing it. The great thing for her is that the side hustle money is all the fun stuff so it makes the work and effort of doing it more appealing because she is working for fun.
Erin @ Journey to Saving gaugereckless for sure, only takes one thing to open up our minds and than we’re set
Beachbudget You put it so succinctly, Tonya! I think we still have a few areas we could cut back on, too, but we’re comfortable with how many changes we’ve made. Time to earn more!
blonde_finance That’s awesome, Shannon! Great example of how you can make money work for you. It doesn’t have to be something intense or time-consuming. It is necessary to have *some* money for fun at the end of the day.
I am one of those people that loves their “career” job and (at this point in my life) don’t want to leave it; however, I did find that I could relocate to another city and make a LOT more money doing a job that is much easier and has better vacation. Sometimes there are options to increase your income within your current situation. I”m happy I did it!! :)
bnwilliams500 It’s great that you’ve found a job you love! Very true that there are other ways to earn more within your career. Relocating is a great way to do that. More money and more vacation time is always nice!