Comments on: Saving Money vs. Making Money

By: Carolina

Carolina — Wed, 02 Apr 2008 04:36:06 +0000

Great site!

DABRFE–Sometimes I’d rather stuff the money under my mattress:)

By: » Studying, Studying, Studying…

» Studying, Studying, Studying… — Sun, 08 Oct 2006 04:31:06 +0000

[...] We’re both up to our ears in academics, so we don’t have a new, fresh and exciting substantive post for you tonight. In the meantime, you might want to check out J.D’s posting on saving v. making money. Its not an earth shattering revelation, but nonetheless an important reminder worth reading. [...]

By: Pragmatic Prose

Pragmatic Prose — Fri, 22 Sep 2006 00:13:46 +0000

Increasing Your Income…

…

By: Fazal Majid

Fazal Majid — Tue, 19 Sep 2006 02:53:16 +0000

Actually, it’s Delta_wealth (or debt) = income - expenses.

That said, saving money by spending less packs a triple whammy: the savings come from after tax money, and at the same time reduce the amount of money you need to earn or save to be wealthy, i.e. financially independent.

If your marginal tax rate is 10%, saving 5% off your expenses is equivalent to earning 21% more (assuming your savings are proportional to income), or to a 15% raise (if you put away all of the raise for savings).

By: dabrfe

dabrfe — Mon, 18 Sep 2006 18:19:38 +0000

Saving money does not mean stuffing it under a mattress. Saving money encompasses any number of investment vehicles that can easily preserve principal in the face of inflation.

Some would argue that the world (certainly America) is one of indulgence, not abundance. Just because a large population lives that way, does not mean it is the healthy way to live.

Scarcity is not the only alternative to abundance. I agree that we were made to enjoy life. However, happiness should not be dependent on material abundance. There is much happiness to be found and much life to be lived in responsible stewardship.

By: prlinkbiz

prlinkbiz — Mon, 18 Sep 2006 17:16:08 +0000

Money you save loses money over time. Why not manage the little bit of risk and leanr to grow it? The world is one of abundance, not scarcity- live life!

By: dabrfe

dabrfe — Mon, 18 Sep 2006 16:43:54 +0000

Dollar for dollar, it is better to save $1 than earn $1 - the saved $1 isn’t taxed. So, I would rather reduce my expenses by $50/month than get a $50/month raise.

Looked another way, every $1 spent requires earning at least $1.33 (assuming 25% gone to taxes, FICA, etc.).

By: prlinkbiz

prlinkbiz — Mon, 18 Sep 2006 16:19:11 +0000

There are many ways to increase you financial means. It is actually easier to become financially free the less you earn/need to live on. For example, I can live on $2500 a month. So instead of finding a minimum wage job that would take me away from my kids, I saved money and invested in a biz that throws off $2500 cash flow for me. I also started my own biz, and any additional money that makes, I put towards investments. Many benefits to starting your own biz, tax, time, financial and otherwise, even as a side or part time venture.