This article is all about building wealth, and there are only two ways to have more money than you do now: either you earn more money or you spend less. That’s it.
There are two ways of being happy. We may either diminish our wants, or augment our means – either will do – the result is the same. It is for each man to decide for himself, and then do that which happens to be easiest. -Benjamin Franklin
image credit: stevendepolo on flickr
Like Ben Franky said it is up to each of us to decide on how they want to build our wealth. This is not to say you need to choose one over the other – a combination of both is probably the best way to go.
Below I have tried to give a good solid list for each way – spending less and earning more – but feel free to add your ideas in the comments below if I have over-looked something.
Spend Less
This is the easiest of the two ways to save more, and the road most people take when they are trying to save. You simply decrease the amount of money you spend.
Cut Back On Expenses
Going shopping less often, heading out on the town less frequently, curbing your frivolous spending – all of these will cut the amount of money you spend and allow you to save more.
Slash Your Bills
Reducing your bills can be a great way of finding extra cash. From turning off lights and using your air conditioner sparingly during summer, to cutting back on cable television and your mobile phone plan – there are a myriad of ways you can save money on bills. You just need to look for them.
Eat Better
Cooking your own food and eating out less will not only save you money it will make you healthier as well. Reduce eating out to a special treat and learn to cook simple yet healthy meals at home from basic ingredients and save a heap on your food bills.
Don’t Keep Up With The Jonses
Living within your means and wanting less is a great way to save money because it means that you will be less likely to buy the latest fad product or try and out-do your peers. Be content with what you have and focus on quality over quantity.
Live Simply
Don’t over-commit yourself financially and live a simple yet extraordinary life. Favour experiences over things and be mindful of the difference between a want and a need.
Going Frugal
Being frugal isn’t about being cheap – it’s about being careful with your money and a way of living that gives away excess and mass consumerism. There are many website devoted to this way of life.
image credit: nerissa on flickr
Earn More
This is the harder of the two ways but it can be the more beneficial. Earning more involves increasing your income either through investments or good old fashioned hard work. The main ways to earn more are to work more or get paid more for the work you do.
Working Overtime
A lot of businesses offer their employees overtime. This is a very popular way to earn more money than you would normally. Some people even rely on overtime to off-set a low income.
Getting a Second Job
You could get a second job. This could include a night job or something extra on the weekends – basically anything that falls outside you current job. This isn’t recommended over the long term as you could easily wear yourself out, but if you are looking at paying off debt quickly or need to save in a hurry, then this could be a good short-term solution.
Pay Rise
With this strategy you try and get more money for the work you already do, either by working harder or better or both so that your employer will pay you more. Depending on the job you have this could be easier said than done.
Get A Promotion
This is usually accompanied by a higher wage and while it would not suit everyone, a lot of people strive for this in their current jobs.
Getting a Better Job
Whether through getting a higher education or gaining more skills, this can be a great way to increase your income. Looking around for a better-paying and more fulfilling job could be just the thing you need.
Starting A Small Business
Starting a small business from home is a great way to earn extra income. This can be as small or as complex as you make it, and can even lead to you quitting your day job.
Investing
Investing your money allows you to grow it and perhaps earn a passive income along the way. There are many ways to invest your money, from the stock market to property to more unusual ways like collecting.
Conclusion
Remember that there are only two basic ways you can gain more money, but a myriad of ways you can do each one. So experiment with them and try and find the perfect balance for you.
Any others that I have missed? Have you found your perfect balance?
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