Money problems affect the majority of the population. And people love talking about it in the newspapers, social media, TV, everywhere. There is always something to talk about when it comes to money.
If you have searched for an answer to money problems before, you must have heard of some solutions. Some common solutions such as saving money, investing your money, diversify your income, and so on.
But there is a different way to solve money problems. This is not a new solution by any means, and some experts have been talking about it, but for some reason, it’s not that popular.
To make it simpler, some experts think that people are not focusing on what actually matters. Most discussions about money always talk about saving, budgeting, and more saving. Even though, the problem isn’t really how much money you can save, but how much you can earn.
If you’re struggling to save some money each month, you should change the way you think about money problems. Maybe the problem isn’t about saving your money, but you don’t earn enough money
This is why I want to talk about this topic. I have a list of reasons, why increasing income is better than saving money. Hopefully, this will help you.
Don’t underestimate motivation. Motivation drives people to improve themselves every single day. Without enough motivation, your money problems aren’t going away anytime soon.
The problem with saving money is that you don’t get enough motivation to keep doing it. And don’t worry you are not alone. For many years or even decades, people have been told to save their money. And that money won’t be seen again for a very long time. This is enough to discourage people from saving their money.
Now compare it to earning more money. Who doesn’t want to earn more money? The idea of earning more money so you can use it however you want should be good enough motivation for everyone.
If you tell someone that they can use their money to invest in something that will earn them more money, they’ll get the motivation to do it. So, you can invest your money for something like a car or a house or anything that can motivate you to earn more.
Another way is to invest in something that allows you to diversify your income. Let’s say a computer, DIY tools, or anything in that nature. You can instantly see what your money can buy and earn more money that way.
Easier to manage more money
If you don’t earn enough money, it is difficult to split your income. Coming up with the best way to split your income for saving, paying bills, food, etc. can be stressful.
This is not good for your health and can hinder you from being productive. Your time should be spent on studying, working, and overall making your situation better. Not stressing yourself overthinking how you can save your money while still having enough for anything else.
It is much easier to use your money to invest in something that can help you earn more. And when you finally earn more, it will be much easier to manage your earning.
Your saving might not be enough
Saving your money means that you won’t see that money for many years. Unless you need to spend your money on something urgent. When this happens, there is a chance that you might spend all of your savings at once.
This is not uncommon at all. One disaster or incident could wipe your saving clean. All your hard work for years is gone in one fell swoop. And now you must start from the beginning again.
Since you saved most of your money, there is nothing else you can do but saving again. Now imagine if you invest your money instead. Not only you’ll earn more, but your money also will not stop earning you more money. And when something urgent happens, you can still earn your money, thanks to your investment.
Also, after you get your initial investment back and starting to earn extra money, you can save more than before.
Diversifying your income is the key
Increasing income means you must diversify your income. It’s business 101 and everyone should do this.
Don’t let your money be idle. Invest and diversify your income, to secure your finance and future. Look into what kind of investment you can do with the money you have. Choose the safest one and start from there.
If you can do it, you’ll have something to hang on to if one source of income fails. This is why it’s important to have more than one source of income.
It could be difficult to change one’s mindset from saving to spending or investing. Because that’s what people have been taught all these years. That everyone must save their money.
But breaking this habit could be your chance to gain financial independence. Don’t be afraid to invest and put your money to work.