ways to get more money

The Two Ways to Get More Money

Everyone could use more money in their pocket, but did you know there are only two ways to get more money?


No matter your job, spending habits, debt, and any other parameters related to your finances, if you want more money coming in there are only two choices open to you.

You can either increase your income or decrease your spending. It’s as simple as that.

Here are the two ways to get more money and how you can go about each.

The Two Ways to Get More Money

No matter your money goals or reason for wanting more money, increasing your cash flow boils down to increasing the money coming in or decreasing the money going out, or having some combination of both.

To help illustrate this point, let’s look at a concept you may be more familiar with: losing weight.

It’s the same idea. In order to lose weight, you must either burn more calories (through exercise or activity) or decrease the calories consumed (eat less and healthier). Also similar to losing weight, the most effective method for saving money may be some combination of both increasing your income and decreasing your spending.

Why are we telling you this?

Because very much like losing weight, people tend to focus on only one option when it comes to increasing cash flow. When trying to lose weight, people tend to focus on exercise and neglect the impact of diet. With money, people tend to focus on increasing income and fail to recognize that they can increase their cash flow by limiting their spending.

Increasing your income is always an option and will allow you to have more money without changing any of your current spending habits.You can increase your income through side hustles, investments, passive income streams, money-making apps, and tasks to get quick cash.

But for those who already work multiple jobs, cannot work a second job (or more hours at their first), or simply don’t want to work more, there’s another option.

Decrease your spending.

Remember, Money Saved is Money Earned. Decrease your spending, increase your money.

We’ve already written several articles on how to save big money on interest (check out our Taking an Interest in Interest series), but the purpose of this article is to guide you through a process for determining what money-saving option is best for you.

First, you must create a budget.


Budget sheet, budgeting

Click here to receive a free interactive monthly budget sheet!


We know, budgets aren’t super fun, and you may not know how to create one. Well, you’re in luck, because here’s a quick step-by-step guide to creating a basic budget and what to do based on the results.

  • Calculate all your fixed expenses. These are things like rent/mortgage, car insurance, utilities, loan payments and whatever else you MUST pay every month. These are set payments that are relatively predictable. Some of these things are necessities to live, while others are the result of choices you’ve made (think car payments: a basic commuter vs an expensive sports car!). No matter which category your fixed expenses fall into (necessities or choices), these are things that must be paid every month and take priority over all other spending. You should also factor some money into your fixed expenses every month for unforeseen expenditures. These are things like broken appliances, car repairs, and similar Murphy’s Law issues that must be addressed.
  • Compare your total fixed expenses to your income. What is the difference? Is it a positive number or a negative one? Hopefully it’s positive (meaning you have money left over after fixed expenses), but if it is negative you’ll need to make some major changes ASAP.
    1. If the difference is negative you are running out of money before you can pay all your bills and have a serious problem. You either need to increase your income (through a second job or other means), or you need to reduce your fixed expenses. You could move to a cheaper place, sell your car (or other items bought using loans), or seek assistance. If you’re in this position, stop here and look into the options just listed to get yourself back on track. DO NOT DIG A DEEPER HOLE BY SUPPLEMENTING YOUR INCOME WITH CREDIT CARDS OR PAYDAY LOANS!
    2. If the difference is positive you are in a good place. This means you can pay all your necessary bills and expenses, and there is money left over that can be put to other uses. Read on for the next steps!
  • Calculate your variable expenses. If your fixed expenditures compared to your income is positive, you can begin to look at variable expenses. These are things that you don’t necessarily have to buy and can vary drastically from month to month. First up in this category are things such as groceries and gas, which are similar to fixed expenses except these items can be adjusted through frugal choices. However, the most impactful variable expense categories are things such as eating out, clothing, personal grooming (mani’s and pedi’s, nails, Starbucks, massages, etc.), and entertainment. This is the number one place people blow their budget. While these things may give us short-term satisfaction, they are not needed to live and are the prime place to begin saving money.
  • Decide what variable expenses you are willing to reduce or cut out. This is where you can have major Money Earned through Money Saved. Typically, people who have a surplus of money after fixed expenses spend most it on fun things. They get a Starbucks every day (at $4 a pop!), eat out a lot, or use their surplus to buy more expensive items and increase their debt. This is all fine and good, but if you want to increase your cash flow looking at ways to decrease your variable expenses is a good way to do it.
  • Budget your variable expenses based on your goals. How much money do you want? We recommend setting that amount aside and budgeting your variable expenses to allow for the loss of that chunk. For instance, say you want to contribute $100 a month to a retirement account, and you currently spend $100 a month each on dining out and entertainment. Setting your eating out and entertainment budgets at $50 a month instead saves you the $100 you need to reach your goal.

Moral of the Story

The above steps for building a basic budget focus on reducing your variable expenses in order to have Money Earned through Money Saved, but this option may not be for everyone. No matter your goals or how you intend to increase your cash flow, having a basic budget is a must to truly understand where your money is going and to make informed decisions about your options.

The steps above will help you to build a budget and determine the areas of your finances that can be changed to meet your goals. Hopefully, you’re in a position where you can play around with your variable expenses in order to save money. Even if you have enough for variable expenses, maybe you decide you’d rather keep your habits and increase your income. On the other hand, maybe you realize you’re paying too much in fixed expenses and decide to make a change there.

No matter what you decide, remember that it boils down to two ways to get more money: by increasing your income or decreasing your spending. Building a basic budget is the tool you need to see where your money is currently going and make an informed decision about which option works best for you.

Talk about Money Saved!


27 thoughts on “The Two Ways to Get More Money”

  1. Sam @ Thiswaymommy.com
    Defintely with you on the cut out variable expenses part!

    It is amazing to see how much money we waste on things we don’t truly need. I like the Starbucks example. It does add up!

  2. A lot of great tips. Sometimes I find it hard to stick with a budget. But this helps to get me motivated more. Thanks Tawnya.

    1. You’re very welcome! Did you download our interactive monthly budget sheet? The formula’s are already in place so all you need to do is put the numbers in and see where you stand.

  3. I love how you simplified something that many seem to make so complex! I often get asked how I save so much for travel when all it comes down to is me cutting out unnecessary expenses like Starbucks, salons, frequent fast food trips, etc. Decreasing your spending is tough but so worth it! Great article!

  4. Awesome post! I’ve known I need to keep better track of my budget, but this really gave me some great ideas how. Thank you!

  5. Very clear, concise information on how to start a budget. Wish these types of resources would have been around 30 years ago when I got married. It would have saved me years of learning the hard way,

  6. Great article! I am definitely in the ‘decreasing expenses’ camp at this point in my life. I recently made a big decision to downsize, which will save me hundreds of $$ a month. It’ll be an adjustment, but definitely worth it. I am choosing not to take on another job (to increase income) because I want to spend my time away from my 9-5 to focus on my passion (blogging). So, cutting costs is where it’s at for now!

  7. This school year I have been working on both. I picked up a couple dog-walking and other temporary jobs to add income (I only teach mornings). I’ve also been reducing my lunch spending. It’s a combination of not eating out and then if I do eat out, looking for cheaper options. With 3 teenagers on the brink of college it seems like my money ship is rapidly sinking no matter what but I’m trying! Small changes are better than no changes, right?

  8. What a thoughtfully written, clear explanation of a concept so many people try to make really complicated. I’m going to pass it on to my teenager as part of his financial literacy training. Thanks!

  9. Love the post and how deep you go into the topic. I actually have a similar post on my blog too. As you said, to start getting your finances in order you have to spend less and earn more. I started with learning where my expenses are and then, started spending less. Only now, I’m trying to implement the second rule by earning more. I’d prefer to do both at the same time but it’s not always possible and doing one thing is better than be stuck at the same place.

  10. Thanks for breaking this down and making it easy to understand. Weight loss is a good comparison.
    You are so right about personal grooming, both my DDs have their eyebrows done on a regular basis – its £15-20 each time. Even once a month that’s a chunk of change that could be saved! I know what I’d prefer to do with a spare £20 🙂

  11. Great advice. I started writing down my expenses about a year ago. The first month I got scared at how much useless things I was spending money on. I still have a few guilty pleasures, such as the ah-mazing coffee I buy 5 days a week from the coffee shop near my office. But this habit still helped me save so much!

  12. Besides a great blog post, the interactive excel spreadsheet is a very thoughtful addition.

    I’d never thought of the fact that there’s only 2 ways to have more money, spend less or make more. It really declutters the mystery behind “why does it feel like I never have enough money”.

    Great post. Keep it up!

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