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Should You Focus on Cutting Expenses or Growing Your Income?

Managing personal finance

When faced with a challenging situation, as in not having enough money, try to ask yourself which one of the following two you cherish more: time or money. 

Depending on the answer, you will be able to make the appropriate decision: whether to take on a side hustle or cut back on your expenses.

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Should You Focus on Cutting Expenses or Growing Your Income?

Should You Focus on Cutting Expenses or Growing Your Income?

https://twocents.lifehacker.com/should-you-focus-on-cutting-expenses-or-growing-your-in-1841134920

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Key Ideas

Making the right choice

Handling difficult situations requires taking appropriate measures. When one has issues with the money, there are only two possible scenarios: cutting back on expenses or growing your income.

Managing personal finance

When faced with a challenging situation, as in not having enough money, try to ask yourself which one of the following two you cherish more: time or money. 

Depending on the answer, you will be able to make the appropriate decision: whether to take on a side hustle or cut back on your expenses.

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SIMILAR ARTICLES & IDEAS:

Education and wealth

College degrees can add significant wealth. The more education you have, the more you’ll earn and the less likely you are to be unemployed. And if you can keep debt low while getting th...

Controlling expenses and wealth
Those who control their spending do much better. This doesn’t mean you have to save on EVERYTHING, just some things. Enjoy your life by spending on what you want here and there, just keep it in line so you have excess to save and invest. Even 10% will make you wealthy over time.

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacte...

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacted by the amount invested.

The Golden Rules of Personal Finance
  • Spend less money than you earn
  • Always plan for the future: you should always look forward beyond the current month
  • Make your mon...
Budgeting = creating a plan to spend your money

Budgeting is simply balancing your expenses with your income.

It's a plan for the coordination of resources and expenditures. When you budget your money, there’s a desir...

How to create a budget
  1. Gather Some Financial Information: gather a detailed list of your income and expenses.
  2. Select a Budgeting Method: figure out how you’ll budget your money to meet your most pressing financial goals.
  3. Create Your Budget: tally up all your expenses and income to see where you stand and allocate expenses.
  4. Execute Your Plan: you can use a notebook, pen and paper, a spreadsheet or an online software.
  5. Reward Yourself: you can work a small percentage into your budget to treat yourself each month.
The 70:20:10 budgeting method

This method suggests that you allocate 70 percent of your income to expenses, 20 percent to savings, and the remaining 10 percent to debt.

70:20:10 may work for someone with a healthy emergency fund and minimal debt.

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