One of the biggest problems people run into is they focus a little too much on saving money. You see it all the time. With articles online about “10 ways to save money this month”, “use these hacks around your house to save money”, you begin to develop a myopic way of thinking.
Sure, I’m guilty of writing these kinds of articles in my “Save More” section of the blog, but these are meant to be used as stepping-stones. The ways to save aren’t to be interpreted as the final word on how to build your net worth. You’ll never reach your goal.
How are you gonna get anywhere with a $65,000 salary the rest of your life? Considering the average rate of inflation is a little over 3%, that $65,000 won’t be worth much in 30 years. That’s not even taking into consideration if you’re planning on having a family and if you live in one of the major cities in the United States.
You can’t tell me you’re either a. satisfied and/or b. not stressed out about your financial situation if you’re making a low 5 figure salary, especially in a big city.
Wouldn’t you want to have more money? It’s not the root of all evil like so many people incorrectly tell you. If you actually think that, you’re approaching money all wrong. Money helps you release financial pressure, allowing you to do the things you always wanted to do without feeling guilty about dropping some cash for that luxury vacation you always wanted.
But how are you gonna do that if you’re always working on a 5 figure salary? You need to think bigger, you need to make more money, not just save and invest more money.
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Look, the truth of the matter is, the frugal lifestyle isn’t going to cut it, especially in places like New York City, Washington D.C., Los Angeles, etc. And let’s be real, frugal is really just another word for poor. You don’t want to be poor. Being poor in the United States sucks.
You need to focus on your income, and figure out ways to make more money. Isn’t it more exciting and satisfying putting in hard work and seeing it pay off anyways? Why call it quits on your life and become as frugal as possible to live a minimalist lifestyle? To me, that’s a cop-out to avoid working really hard and facing potential failure.
I’d rather spend hours a week after my 9-5 job working on my blog knowing there’s a risk it won’t work out than not try it at all. At least I won’t be able to say “what if?”. If it doesn’t work out, so what? At least I gave this thing a shot. You only live once, why not try to make it awesome and make as much money as you can while having a good time with it?
It’s way more interesting in my opinion to learn new things from books and apply those lessons to try to make more money. Life would be super boring if all you did was the same old thing over and over again, lacking any drive whatsoever to accomplish anything meaningful to you, making zero effort to improve yourself. Learning doesn’t stop after you graduate, that’s usually where it begins.
You only have one life to live, why not make the most of it? There are thousands of different ways to make money. Find something that might interest you.
10 ways to make more money:
- Create a blog
- Sell a product or service; online is best since it’s the easiest to scale
- Take surveys online
- Rent a room or a couch
- Pet sit
- Get a part-time job
- Play video games
- Sell things in your apartment or house
- Mow people’s lawns, shovel snow or rake leaves depending on the season
- Become an Uber or Lyft driver
You don’t even have to actually work at stuff you really hate in order to make more money. Most people tend to think that because we’ve been told you need to get a job and that most of the country hates their job, or is at least disengaged from it. But that doesn’t have to be you. You can do something about it.
So many people think the best way to make more money is by putting in more hours at their day job because that’s the way to “guarantee success”. That couldn’t be farther from the truth. Would you rather be competing with 10 people for one opening, or create your own path as a side hustle? There are way too many politics that go into your day job to ensure you’ll be compensated accordingly.
You need to always try to make more money and put your best effort in your day job, but I sincerely believe you need to try a side hustle as well, especially if you’re in an industry that typically doesn’t pay as well as say a finance job or a pharmaceutical job.
I mean hell, I sit next to a guy who vocally, at work, bitches and moans how much he hates his job and doesn’t wanna be there. And yet, even though he interviewed to literally become a bus driver last year, he still received a bonus, was given LESS work, and switched his seat to the corner of the room away from everybody. The dude is a loser and still gets a bonus just because he’s been there 15 years and is buddy-buddy with our team leader.
Yet, I get nothing in bonus and do literally twice as much work as him. I know because I’ve seen his account list and watch what he does all day. Never, ever depend on your day job or one source of income. You never know when will be the day you’ll need that backup income, in case you have some bad luck and lose your job.
Life isn’t fair, but that doesn’t mean you need to sulk about it and think it’s a waste of time to try to make more money and create a better life for yourself.
It all really comes down to this: deciding to get rich instead of simply wanting to get rich.
We all want to have the best body, the nicest clothes, the coolest car, but what are you gonna do about it? Are you gonna work your ass off? Are you gonna sacrifice the immediate gratification, find ways to save money to invest it, or are you only gonna dream of what you could be doing and instead find yourself at a bar on a Friday night?
Instead, I’m at my apartment outside on the balcony on a Friday night drafting this post. Meanwhile, my friends are out getting drunk, wasting money. I’m here because I’m focused on making more money.
It’s not a guarantee it’s gonna work. I don’t know how much people are gonna enjoy reading everything I write, but nothing ventured, nothing gained. The worst thing you can do is look back on your life and wonder “what if?”
According to Steve Siebold, the author of How Rich People Think, rich people focus on earning, while the average people focus on saving. He basically says the same thing I did: “The masses are so focused on clipping coupons and living frugally, they miss major opportunities.”
Instead, the wealthy people of the world put their energy into earning a boatload more money. Sure they save, but they prioritize making more money. And the saving part could even be, and most likely is, for a future investment.
You don’t save to save, that’s stupid. You’ll be getting a .01% interest rate from a bank that way. The average rate of inflation is over 3%. In just 10 years your $1 today will be worth $.70. That sucks.
If you focus on “earn more than you spend” rather than “save more than you spend”, the emphasis is on making more money. It’s not a get rich quick scheme, it’s about getting rich slowly, living comfortably in the process. It’s not about living frugally, splitting the toilet paper so it’s single ply instead of double. I literally saw a couple live that way on TV in some documentary. It was ridiculous.
The middle class is shrinking, guys. There’s a greater gap developing between the lower class and the upper class. Get on the right side! Get your focus on making more so you can invest more in yourself, in stocks, real estate, whatever it is that you know. I know more about investing in stocks of companies than real estate, so that’s why I blog about it to try to help you guys out.
There’s no bigger advocate I know for generating more income than Grant Cardone. In his own words, he tells CNBC, “People get rich because they produce revenue, not because they make little investments over time.”
You should really be focusing on earning big. Grant went from $3,000/month in his 20s to $20,000/month in less than 10 years. A great way to scale and give it a shot is through blogging about something you already know more about than the majority of the population.
Get in the frame of thinking earning money is and always will be more important than saving money. First earning, then saving, then investing.
When you get out of college, or even maybe now for you, you’re making around let’s say $35,000-$40,000. If you don’t care about making more money, there’s realistically only so much you can save.
Let’s say your rent is $1,000/month and you also have to pay $200 on top of that between a cell phone bill, utilities, cable and whatever else you’ve got going on. After taxes, if you’re living in New York City, your income is $27,461. That’s $2,288/month.
So right off the bat before you even consider buying food or yourself, paying for your commute to work, spending time with friends, you’re down to $1,088 for the month. And I’m willing to bet you’re not doing everything you can to find ways to save more money. Realistically, how much are you saving each month? $200? That’s not gonna cut it.
I’ll never forget the day I realized how important it is to focus on making more money. When I left my last job for the one I’m currently at, my salary increased by 87.5%. I felt like the richest dude in the world. I could actually afford to live in an apartment with a roommate if I wanted to!
No more did I have to live off of $100/month living at home so I could save. Now I could actually go out with my friends every so often. But then I thought, wait a minute, I’m not even making that much relative to the average household income, let alone the richest people in the country. If that jump in salary felt good, then increasing my income 10x is probably the best feeling in the world!
It was then I decided to put more focus on earning and investing more so that in return, I could live the life I always wanted.
The reality of it is, earning more money gives you more options in life, it gives you more freedom. The real power of achieving your financial goals is in earning more money. The stress of being poor is no more. Now, of course, it’s up to you how you handle your money once you start earning more.
Are you gonna blow it all on booze, clothes and shiny toys? Or are you first gonna invest it in yourself and play the long game to get rich? It’s really up to you, but you’ve seen those people who win the lottery. Most of them don’t have a clue what to do and squander it away only to be right back where they started, or sometimes worse.
You need a triple threat: make, save and invest more.
How are you gonna make sure you’re doing everything you can to make more money so you can invest it for passive income?
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