The Two 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? Seriously. 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. Here are the two ways to get more money.

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.

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.

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.

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.

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.

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.

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Money Saved Is Money Earned!