Being frugal or learning to have that characteristic is an important part on how you can balance your expenses and savings. However, in every advantage there will always be a disadvantage. Being or learning to be frugal can help you a lot but it can also require you so much work that will make you believe the fact that all you do is believing in frugality without any improvements in your life. Since frugality is just one part of the financial aspect, it is never sufficient.
According to Afford Anything, a famous personal finance site, one of the most important matters when you deal with finances is the gap between how much you spend and earn every single day. The bigger the gap between your expenses and earnings, the better off you are to live your life. With regards to frugality, it only focuses on one aspect and that is on your expenses. If the amounts you are earning for the day do not change, there will be greater possibility that the gap will neither widen nor narrow down. In simpler terms, frugality should be coupled with the way or how you earn.
The basic formula here is: Spend Less, Earn More. Both of which are critical to your financial independence. The key is to program your mindset that the more you earn the easier for you to save it and you will soon have a substantial saving if you keep on remembering it. If you keep on focusing and spending most of your time on looking for some plan or solution on how to reduce your expenses, but seldom give any thought on how you can increase your earnings, you are definitely missing the equation.
You should bear in mind that the gap between your earnings and expenses can affect both sides. If it will not, there will be no improvements nor can you save a substantial amount.
Learn How To Mind The Gap
Getting a job can either limit or widen the gap. It is just a matter of discipline and priority. You can also go for a “Full Max” retirement account so that you will have enough leftover when it comes to your travel, rental property, dream home, grad school expenses, and other cash flows.
If you can get two jobs, it will be better. However, you should remember and take into consideration that your mental and physical bandwidth is limited. You can never exert or devote your life to working and earning lots of cash. Sometimes, you need to spend time with your family and friends or just go out for a walk to relax.
The key in fulfilling or making the gap work to your advantage is that you should know and perfect the art of focus. You need to put your head in the game and focus on increasing your income and keeping your expenses less or under control all at the same time. BY doing this, little by little, you will be experience that the gap will just grow naturally and will work to your advantage.