“My mentality is money orientated.”
AZ
Earning money is an art and science. If you focus yourself on earning, while spending less, you can set your family up for success.
Like most things in life, this is easier said than done. Doesn’t make it any less true. And that simple truth, Fathers, is this: Don’t waste the minutes, hours and days of your life wasting money. The wise move is to spend them earning so you can chill later on.
It’s similar to working out. You can hit the gym, slam whey protein and creatine, and get big. But, you’ll end up with Flabs (Flabby Abdominals) if you don’t watch your diet. Like any good regimen, you need to workout and follow a diet. Sweat and add muscle while burning through a calorie deficit rooted in high value nutrients.
Dad, you can earn more income if you put your mind and grind to it. But your gains will be for naught if you’re wasting them away on stupid shit, like a bigger house you can’t afford and frivolous spending that keeps your revolving balance high.
“Earning more will skyrocket your investing journey to eventual freedom, but it doesn’t matter if you don’t know how to spend less.”
Money With Katie
EARNING MORE
The best way to reach your financial goals and get out of debt is to make more money. You cannot save your way to investing at a scale that allows for significant compounding returns.
You can’t cut spending here and there and pay for your residence, kids’ school, car bill, and all the other necessities like food, clothes and power. You have to get to a point of confident supply for you and your family through higher earnings.
You could get a raise at your current job or by moving to a new company. Add a side hustle. You could take on a weekend job that supplements your career. If you’re self-employed, you could lean in to generate new revenue from new customers or clients. There are myriad ways to go about earning more. Again, this is easier said than done, but it is doable to go and make more money. The hardest part is stemming your outgoing cash flows once you start generating more incoming cash flows.
SPENDING LESS
Way to go. You’re making more money.
Now you must avoid Parkinson’s Second Law: “Expenditures or “money paid” out rises to meet income.” Check out this great book, The Law and the Profits.
This is also referred to as “Lifestyle Inflation.” These are the ones that demonstrate through science that as you make more money, you will certainly spend more money.
“Things that were once “luxuries” can easily become “necessities,” resulting in increased spending.”
Investopedia on “Lifestyle Inflation”
Don’t move out of your three bedroom apartment into a five bed home. Don’t upgrade your car because a higher salary guy should drive something nicer. That’s fake, that’s forgery, that’s manifest destiny for failure, my fathers.
It’s natural to want more as you make more. It’s even necessary to do so as your increase in salary corresponds with life events, like getting married or having children. One way to do this prudently is to make your spending changes gradual. Stick with your old ride, then upgrade to the more expensive SUV when life circumstances dictate the time.
Listen, this can happen for you, Dad. The first step is to earn more. The next step is to not spend more. When you can, start saving. Check out our resources page for a budget template to get started.
