Comments on: Increasing Your Net Worth- Increase Your Income or Cut Expenses? http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/ A personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Thu, 11 Mar 2010 17:45:52 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: mei http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-923 mei Thu, 20 Aug 2009 15:15:07 +0000 http://financialhighway.com/?p=2427#comment-923 Can’t state enough how important the sacrifices that go into wealth creation are. Curious if anyone has caught this book yet? “The Richest Man in Town” by W Randall Jones. I’ve read half of it so far and let me tell you it is well worth it. Would like to hear what everyone else thought of it? http://www.richestmanintown.com Can’t state enough how important the sacrifices that go into wealth creation are.

Curious if anyone has caught this book yet? “The Richest Man in Town” by W Randall Jones. I’ve read half of it so far and let me tell you it is well worth it. Would like to hear what everyone else thought of it?

http://www.richestmanintown.com

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]]> By: Time Is Money – So Make More Of It « Happy Money Medium http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-882 Time Is Money – So Make More Of It « Happy Money Medium Fri, 07 Aug 2009 13:47:00 +0000 http://financialhighway.com/?p=2427#comment-882 [...] My Wife Quit Her Job tells you how to make your time equal money, and Financial Highway compares making more money to cutting costs. [...] [...] My Wife Quit Her Job tells you how to make your time equal money, and Financial Highway compares making more money to cutting costs. [...]

]]> By: AJ http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-875 AJ Wed, 05 Aug 2009 05:17:00 +0000 http://financialhighway.com/?p=2427#comment-875 I just realized this about myself. I have been focusing on cutting expenses but it is like hello!? ....I am never going to payoff my debt with the salary I am making. I am going to focus heavily on this and see what I can do. I just realized this about myself. I have been focusing on cutting expenses but it is like hello!? ….I am never going to payoff my debt with the salary I am making. I am going to focus heavily on this and see what I can do.

]]> By: Greg S http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-874 Greg S Wed, 05 Aug 2009 03:17:20 +0000 http://financialhighway.com/?p=2427#comment-874 These are excellent thoughts to be considered. When looking at the two choices from a cost/benefit perspective it always seems to me that you are better served to focus on cost reduction first. For every dollar earned there will be taxes and additional expenses incurred not to mention your time and effort invested. The value of every dollar saved should go straight to your bottom line and therefore have a greater impact on the final result. However, financial management should always be a combination of both. These are excellent thoughts to be considered.
When looking at the two choices from a cost/benefit perspective it always seems to me that you are better served to focus on cost reduction first.
For every dollar earned there will be taxes and additional expenses incurred not to mention your time and effort invested. The value of every dollar saved should go straight to your bottom line and therefore have a greater impact on the final result.
However, financial management should always be a combination of both.

]]> By: Frank Jerome http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-873 Frank Jerome Wed, 05 Aug 2009 02:21:33 +0000 http://financialhighway.com/?p=2427#comment-873 Great post. I think it is important to apply both methods. One can reduce one's expenditure only that much, however, if your income is not being increased, through raises, alternative income streams, investments and so forth, one's net worth will not increase by much. The key factor is to increase one's income; this is the true way to attain a certain level of wealth in one's lifetime. Cutting expenses does help develop the mindset needed for wealth creation, because you now pay more attention to where your money goes. This is key. Once you have the mindset, an increase in net worth is almost automatic. You will do things that are aligned to increasing your net worth. Great post. I think it is important to apply both methods. One can reduce one’s expenditure only that much, however, if your income is not being increased, through raises, alternative income streams, investments and so forth, one’s net worth will not increase by much. The key factor is to increase one’s income; this is the true way to attain a certain level of wealth in one’s lifetime.

Cutting expenses does help develop the mindset needed for wealth creation, because you now pay more attention to where your money goes. This is key. Once you have the mindset, an increase in net worth is almost automatic. You will do things that are aligned to increasing your net worth.

]]> By: Yana http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-872 Yana Wed, 05 Aug 2009 01:12:24 +0000 http://financialhighway.com/?p=2427#comment-872 If you can only choose one, I would choose cutting expenses. I personally find that I have much more control over what I spend than what I bring in. Income depends on things other than the one receiving it. If you can only choose one, I would choose cutting expenses. I personally find that I have much more control over what I spend than what I bring in. Income depends on things other than the one receiving it.

]]> By: Peter http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-868 Peter Tue, 04 Aug 2009 12:02:57 +0000 http://financialhighway.com/?p=2427#comment-868 Ray thanks for the opportunity to post, I had fun writing for a site other than my own for once! Good luck and God bless on the upcoming nuptials! So that's two for increasing income... Ray thanks for the opportunity to post, I had fun writing for a site other than my own for once! Good luck and God bless on the upcoming nuptials!

So that’s two for increasing income…

]]> By: Neil http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-867 Neil Tue, 04 Aug 2009 11:56:25 +0000 http://financialhighway.com/?p=2427#comment-867 Hi I agree with the comment above. If your monthly expenses total $1000 then the maximum that you can achieve by cutting expenses is less than $1000 per month (you are not going to be able to cut them all!). Also, some expense cutting does reduce the fun that you have/makes life inconvenient. On the other hand increasing your income has no absolute limit (although that isn't the same as saying that it is easy to achieve!). Hi

I agree with the comment above. If your monthly expenses total $1000 then the maximum that you can achieve by cutting expenses is less than $1000 per month (you are not going to be able to cut them all!). Also, some expense cutting does reduce the fun that you have/makes life inconvenient.

On the other hand increasing your income has no absolute limit (although that isn’t the same as saying that it is easy to achieve!).

]]> By: Wojciech Kulicki http://financialhighway.com/increasing-your-net-worth-increase-your-income-or-cut-expenses/comment-page-1/#comment-866 Wojciech Kulicki Tue, 04 Aug 2009 11:36:29 +0000 http://financialhighway.com/?p=2427#comment-866 I agree with you - cutting expenses is great and should be done regardless, but it has a definite floor below which it's tough to go any further. You need the basics to live on, and it's always nice to have a little fun, too. But adding in additional income to the mix has unlimited potential. Your limits are self-imposed and controlled only by the amount of time, effort and resources you're willing to put into it. If you want to get ahead - I say diversify your income and find ways to blow it sky-high. I agree with you – cutting expenses is great and should be done regardless, but it has a definite floor below which it’s tough to go any further. You need the basics to live on, and it’s always nice to have a little fun, too.

But adding in additional income to the mix has unlimited potential. Your limits are self-imposed and controlled only by the amount of time, effort and resources you’re willing to put into it.

If you want to get ahead – I say diversify your income and find ways to blow it sky-high.

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