Interesting Article

saw50st8

Tue, May 03 2011, 12:35 pm

Yes and no.

Both are important. If you earn more money, but don't curb your spending, you are likely to still end up in debt.

You really need an understanding of where your money is going. You need to spend less AND earn more.

I think people really need to reevaluate what they *need* in life, what they *want* in life, (both short and long term) and what their salary is.

HindaRochel

Tue, May 03 2011, 12:40 pm

There is a limit to both. Frugality can cause emotional, physical, psychological hardships difficult to overcome in future years. But it isn't always easy to earn more, without doing the same.

Try and do both, but one or the other isn't the basis of good health.

And the article doesn't eschew frugality Saw, I don't know if you read the article itself, it is more that you have to follow through on both options.

Grandmama

Tue, May 03 2011, 12:41 pm

I have always run a business, and the profit potential is essentially unlimited. (past 30+years.)
Still I don't like wasting paper towels, nor do I drink lattes.
I enjoy shopping at Marshall's TJMAXX and Forever 21, but on occasion have shopped lavishly as well; again consciously spending on what I love and enjoy.

I refuse to fly spirit, after trying it once, I will pay more for Jet Blue or fly business class if I have enough points for that. Earning the money gives me the right to spend it as I see fit.
Still why arent there more articles about making huge amounts of money honestly and effortlessly?
Because it isnt so easy!

Grandmama

Tue, May 03 2011, 12:46 pm

All my life I have been reading everyone's books on money.
I learned many things.
But I still learned that balance is the key.
I use kleenex tissues only, quality is important to me.
I never buy green bananas.
I enjoy the things I have, and replace anything that is broken.
I give away or get rid of the things I don't need or use.
I give lots and lots of gifts, and enjoy doing that no matter what anyone says.
I give huge tips to people that service my needs.
I have many "collections" and hobbies.
I spend a lot of money on my close friends and relatives.

JAWSCIENCE

Tue, May 03 2011, 12:48 pm

saw50st8 wrote:

That's exactly what the article says! You need to balance it so that you are getting the most revenue for your time. If a certain frugality measure takes you 5 hours but saves you only five dollars it is much better to take those five hours and work a job that pays $25 an hour if you can get it. He calls it "conscious spending". Spend on what you love, cut the rest and maximize your saving and spending power by earning more.

JAWSCIENCE

Tue, May 03 2011, 12:50 pm

Grandmama wrote:

I refuse to fly spirit, after trying it once, I will pay more for Jet Blue or fly business class if I have enough points for that. Earning the money gives me the right to spend it as I see fit.
Still why arent there more articles about making huge amounts of money honestly and effortlessly?
Because it isnt so easy!

I refuse to fly any airline that charges you for a carry on. Even if the total including the carry on is less than the cost of the ticket on another airline, because on principle I believe it is a huge chtuzpah. Of course the last time I actually paid for a flight was long ago. Long Live Miles!

HindaRochel

Tue, May 03 2011, 3:25 pm

saw50st8 wrote:

HR, I felt that the article implied increasing your wages is more important. I agree in the long term it is, but in the short term, cutting back has a more direct effect.

Balance.

First I want to apologize if my mention of you sounded snappish or something...I realized later it was sort of short, I just wondered if you read because my impression was different from yours. I think it was more about "so many articles on frugality but you need more..."

As far as cutting back:
Well again, it depends on what you are cutting back on (health care? Long term effect isn't good). True, what is a need, what is a want, but that isn't necessarily something someone else can decide.

Are my cats needs are wants? My girls would suffer greatly if they were lost to them, if we were forced to get rid of them, as would I suffer. I did, for 3wks when one went missing. If my kids lives depended on it though, the cats would go of course.

So it isn't so cut and dried...suggestions as to how we can do it are good, but general answers are only good for the general population, not a person in particular.

Which is what makes all suggestions so difficult in the end.

ora_43

Tue, May 03 2011, 4:03 pm

Cutting back is faster, easier, and takes a lot less commitment.

If I cut my grocery bill, I can feel the savings already this week, and the minute I've saved what I need to save, I can stop cutting back. Also, it takes about 60 minutes of effort at most (making a meal plan that uses cheaper ingredients, and possibly more cooking time).

If I want to earn those extra shekels a week (let's say 60), I'd have to decide what work I could do very part-time, find someone who wants to hire me to do that work davka during those hours a week when I'm not working, studying, or taking care of the kids (post 11pm? job openings are limited... ), and if I did find someone, they probably would be less than pleased if I decided to quit a couple weeks later, meaning I'd be in it for the long term.

Another thing is that not all frugality has to be either time-consuming or make a person feel deprived.

I do think it's good to also point out how much working makes a difference - how working just one or two extra hours a week adds up over the course of the year, how people can start a successful side business, how investing in a career now can pay off later, etc. But don't knock frugality Wink

it's still often a very effective technique, and often much more practical than "just work more."

Seraph

Tue, May 03 2011, 4:46 pm

ora_43 wrote:

it's still often a very effective technique, and often much more practical than "just work more."

Hear hear. In all honesty, we do both. When we were struggling financially, my husband started working more hours and I took on side jobs, often two at a time. Now I have 2 writing jobs. At a previous point, I had 2 writing jobs and a few steady cleaning jobs- definitely helped have more money available. But just more money coming in without being frugal doesn't help so much, because that money doesn't end up in the bank- it just gets used. I find increasing income in a way that isn't insanely time or energy consuming, and then being frugal, extremely, allows me to save the most money. That;s how we end up putting more money in the bank each month than some people I know who's income is more than twice ours.

JAWSCIENCE

Tue, May 03 2011, 6:27 pm

I checked out the full website, and it seems his model is "CEO". Cut back on expenses, Earn more, Optimize your spending. So I don't think he bashes frugality. He just wants you to explore other options and not look at cutting groceries as the only thing you can do. He even ran a save $1,000 in 30 days challenge. He just definied saving as bringing in more in addition to cutting back.

He does seem to have a weird preoccupation with being able to afford eating out and trying to get good deals for eating out.