You can only cut back on so much
and
You can only make so much money!
I know everyone talks about both independently as if one is better than the other, and it’s true.
If you save a lot of your money, you’re in good shape.
“Cannot people realize how large an income is thrift?”
-CICERO
If you make a lot of money, you’re in good shape.
But there are limitations to both actions.
You can’t spend absolutely nothing each month. It’s unrealistic.
And you can’t imagine you’ll make a million dollars a year without having worked towards it. It’s unrealistic.
Credit
The best position is if you are doing both, or looking for ways to do both within reason.
What I tend to focus on is the middle: maximizing the gap between making a lot of money and cutting back.
If I made a million bucks a year but spent it all, I am no better off financially than if I made $20,000 a year and spent it all.
I just have nicer toys, probably more debt and stress and an unsustainable lifestyle.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
Yeah, cutting back is definitely the better choice but it has been a difficult transition. I was so accustomed to boredom shopping but have slowly transitioned into thrift and it feels good. Also, have been working towards decluttering for about a year and have managed to purge a ton of unecessary stuff. In an effor to be spend less, I have been doing things with my 4 year old that are not only enjoyable but inexpensive (park, $3 cinema, etc.). I was laid off a couple of years ago from a job where I made a high salary and now I work p/t for a lesser wage. I’ve not only paid debt but saved more just by being more cautious about spending and where my money goes. I am happier than when I was working full time making more money 🙂
This is so obvious, but when I read this it’s like it just “clicked” for me. I just stumbled upon your blog tonight and there’s no doubt I’ll be back. 😉
hello FB! i am starting my own blog to also chronicle my forays into saving and improving my next worth. Love your blog. read through your archives in one day 🙂
I love doing both! I love taking the time to see how I can cut back but I also love looking how I can earn more money.
I’m doing both. My “expenses” (AKA terrible spending habits) are taking a huge cut as I pay down debt, and hopefully I can sustain that as much as possible when I pay it off by continuing to live as I already am. I’m lucky in that I’m able to increase my net worth by $1000 a month. Plus by going to school, the more knowledgable I get the more my pay is increased. In 2011 I was switched to salary and given a 12% increase, and in 2012 I’m making $2000 more than I did last year.
I would want to cut back….it is far more enjoyable to live a simpler life than to seek out additional areas of income.
A little of both! Although I really would like to be making a lot more than I am currently. It’s not an unreasonable request based on what I made last year and where I live. I’m working on making that happen.