Should i increase my income or less my expenses ?

Question

Should i increase my income or less my expenses ?

Answer 1

Try to lessen your expenses first. For 2-3 months write down everything you spend.  I have 2 charts, one is fixed expenses (like mortgage, electric, phone, tv, etc.) one is grocery, take out, gas, house, clothes, newspapers/books, gifts.  If you keep track of every dollar you spend you can see where you can cut back.  Don't spend what you don't have.  It has been proven time and time again that the more you make the more you spend. Let's say 5 years ago you made only $20,000 a year, today you make $50,000 a year.  5 years ago you thought you did not make enough, and today you probably feel the same since now you spend a lot more.  The most important thing is to "pay" your savings account (401K, IRA, simple savings acct) first before you see it via direct deposit, so you save no matter what.  We have 6 people (my husband and I, and our 4 children) living on 1 moderate salary and we save 25% of his income easily.  We actually moved from a very expensive state (NJ) to a much cheaper state (IN) just to reduce our living expenses.  I would say if you do increase your income by $10,000 or so- save 1/2 of that right away-you won't really miss it since you never had it!  Before you buy something, ask yourself, will this be worth it in 5 years,or is it just a waste?  Would you rather have a $300 cell phone today, or $1000 in savings with the interest you earn in 10 years?  Which is worth more to you?  Good luck!

Answer 2

try to increase your income, that is a better option. earn more , spend more and enjoy life

Answer 3

There has to be balance. You need to save minimum of 10% of your income. more the better. Think of saving plans,cash contigency and then plan your expenses.

Answer 4

According to me increasing the income is not an easy job,rather than to reduce the unnecessary expenses.

You should reduce all undesirable needs that can automatically increase your income and that will  give you some extra time to think how to increase your income.

Answer 5

Both if possible.  If you can only choose one, choose the path that results in the most net income at the end of the year.

Answer 6

World has become very small and competition is bound to increase. Your income is at present showing increasing trend and in future it is bound to be affected. As far as possible you can go on increasing your income but increased portion should be for savings.  Many may get diminished wages/income in the days to come and may even loose their jobs and the other trend is increasing inflation due to which your income will fall short of requirement worked out to-day. Only wise thing is to  be on the side of more savings and lesser expenditure.

Answer 7

can't u do both mate?

Answer 8

ter sub b a balance....