Having enough money is a problem that many people face. If I had a dollar for the amount of times I have heard someone say “I have no money” I would probably not need to be working a 9 to 5 job.
Not many people can say they don’t want more money, and to those of you that do, I would be happy to take some of it off your hands if you feel it is a burden 
Money Management
Whenever someone tells me that they don’t have enough money I normally can’t help myself and I chat to them briefly to find the underlying cause of the issue. 9 times out of 10 the problem isn’t with the amount of money that the person makes, but with the person themselves.
Management of your finances is critical to having enough money each week and is the most common reason why people start creating a budget. Many people find that they are living week to week and never seem to be getting ahead of the game.
Money Equation
To all the people who I decide to help with their money woes I give them this very simple formula which is the basis of being financially stable and eventually hopefully independent.
It is that simple. If your expenses are greater than your income then you are losing money and something needs to change. In this scenario you have 2 options.
Option 1 – Make More Money
This is the more difficult of the 2 options, but is the one that most people concentrate on when they find themselves having money problems. There are plenty of ways to make more money, you could try things like:
- Getting a better paying job
- Working more hours
- Working a second job
- Ask for a raise
Option 2 – Reduce Expenses
I personally prefer to look at reducing my expenses as most people will find that they are actually paying for a heap of luxuries at the expense of their financial well being. Living within your means is something that some people really struggle to achieve. The problem is that they become accustomed to living a certain way on credit and don’t want to cut back in order to save money.
Just remember, even small amounts of savings can help out and every bit counts. If you don’t believe me then check out my post about quitting drinking coffee.
If you want to look at reducing your expenses then I did up a SAVINGS acronym a while back which hopefully gets you on your way to finding things to cut back on so that your income is greater than your expenses.
$999.99 Giveaway
If neither of the options above suit you then you are in luck as I am participating in a giveaway for $999.99 which you might be lucky enough to win. Simply sign in to the rafflecopter widget below and enter.
a Rafflecopter giveaway
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Glen, I am already working on Option 1 – Make More Money but now planning to work on Option 2 – Reduce Expenses. I think it may help me to save good amount of capital for retirements. Now, I am new participant of giveaway for $999.99.
Shawn @ PipsToday recently posted..Will the Pound Continue to Weaken?
Excellent work – good luck to you in the giveaway
I totally agree! Making more money is great, but not if you just spend it all. Taking a look at your spending can be extremely helpful.
Holly@ClubThrifty recently posted..My Credit Score: Why I Don’t Care and You Shouldn’t Either
We wouldn’t be where we are today if it wasn’t for tracking out spending.
I have been very lucky that whenever I have wanted more money I could go make it. I never trimmed expenses until last year, and now everything is in beautiful balance! Great post Glen!
Tony@YouOnlyDoThisOnce recently posted..We Are All Experts
I’m glad you have seen the light and started looking at your expenses. It is a really worthwhile option.
Great post, Glen. During my 15 years in the banking/loan industry, I often saw that no matter how much or how little people made, they simply spent it all. And the ones I saw that were financially fit had a wide range of incomes. It’s nearly always about how you manage it.
Laurie @thefrugalfarmer recently posted..Presenting: A Frugal Valentine’s Day Celebration Via Some Linky Love
9 times out of 10 it is the person that has the problem with managing their money. I can imagine it would have been a little frustrating for you working at a bank and seeing this type of thing day in day out.
I like the equation you put up there. It is simple, but yet many don’t even understand it. You have to have more money than you do expenses or you will be in debt, plain and simple!
Debt Roundup recently posted..What Not to do When You’re In Serious Financial Trouble
It really isn’t difficult is it?
I’m always trying to go both at the same time, but I’ve come to a point where I’m splitting hairs with reducing expenses, so I really need to earn more.
Budget and the Beach recently posted..Where You Live: The Good & the Bad
There is only so far you can go with option 2, but it is good to see people try it first rather than jumping into option 1.
Making more money is always a great idea, but cutting costs can go a long way too. I am doing both for the next 3 months in order to pay off debt. My part-time job doesn’t look like it will last long, but every little bit helps.
Financial Black Sheep recently posted..My Cell Phone Plan Costs me ONLY $2.50 per Month!
That is exactly the right attitude too. Good luck with the debt pay down and hopefully that job holds out for you
I hate whenever people say they have no money, but it’s actually just because they are bad with spending. I especially hate it when they try and guilt me into buying things for them!
Michelle recently posted..How To Start A Blog – Tips for a Beginner
I don’t think I have ever been quilted into buying things for someone else. That sounds really low.
Glen recently posted..How to Avoid Unnecessary Purchases
In my opinion, young adults should be focused on maximizing their earning potential and multiplying their income streams. Not everything rides on what you do in your 20s and 30s, but if you get momentum going early on you can probably have a larger cash inflow when you are older.
With that being said, making money and quality of life is all about balance. I know some people who do not make that much money (relatively speaking) but have more free time, flexible work, and generally are healthier than those who are working from sunup to past sundown.
For now I’ll pursue the make more money route until I burn out
DC @ Young Adult Money recently posted..$999.99 Cash Giveaway – Money Problems Edition
Great point DC. If you can maximize your earning potential at a young age and compound it, then later in life you’ll be rewarded with great returns.
Justin@TheFrugalPath recently posted..$999.99 Giveaway: My Money Mistake
I agree with DC, but I am really more talking about those people who always complain about not having enough money. Unless you are on minimum wage there is a good chance that you are making enough money to get by, you just aren’t prioritising it properly.
Glen recently posted..How to Avoid Unnecessary Purchases
This is a concept I’ve been trying to explain to a few people lately! So many people say “I don’t get paid enough, I need a bigger paycheck” when they’re driving brand new, BIG cars, kitting out their whole house with designer furniture (seriously who cares whether a special designer made your kitchen chairs?) and wasting money on every single thing possible. And, y’know, earning three or four times the average wage, so the issue isn’t the paycheck. Maybe the answer is to get them onto reading some personal finance blogs!
Sophie recently posted..What’s for Dinner? Homemade hamburger patties, no egg!
Feel free to send them over my way, i’m always interested in gaining a larger readership
I am hoping to make more money and reduce expenses
so far… not tooooo much progress but baby steps
Edgar@ Degrees and Debt recently posted..January 2013 Recap
Every step brings you closer. As they say – Rome wasn’t built in a day.
Option 2 or creating a truthful budget is the best place to start…quickest wins. Then looking for additional income is always the biggest thing you can do to really get ahead. It is how Edgar has put it – “baby steps”
Rich recently posted..5 easy green and frugal changes you can make in your life TODAY!
Being honest with your budget is key, otherwise you are just fooling yourself.
Being thrifty doesn’t make you money, it saves you money. I hear people at work all the time saying how much money they “saved” buying certain things and in the same sentence saying how broke they are. Newsflash co-workers, if you want to make more money you have to work more. Being frugal alone won’t make you money.
KK @ Student Debt Survivor recently posted..Flood Your Car to Save Money
It all comes back to that equation of Income > Expenses.
I agree that many times when someone says they can’t afford something, it is because they choose not to afford it by wasting money and then wondering where it went. Tracking and budgeting is the only way to know and plan for things you need and want.
Kim@Eyesonthedollar recently posted..99 Money Problems Solved with a $999.99 Giveaway
I guess it is a bit like me saying I never have any time. I do, the same as everyone else, I just need to prioritise it better.
I hate to say that i never had saved any money and wanted to earn with some magic because of the troubles!
fanwar recently posted..Valentine’s Day Decorations
I finally learned after many years that I had a whole lot more money than I thought I had. I just started making a budget and figuring out exactly where my money went to every month. Once I got my eye on it, it was easier to control my spending on stupid stuff, thus giving me more money for investing, etc.
Money management is definitely a great point… lots of people definitely don’t make enough money, even if they only spend on what they HAVE to spend on; and people in the UK in particular are, on the whole – grossly underpaid… BUT, many people make more than enough but their standards of spending simply rise to the occasion, and they waste a lot of it, and simply don’t manage it properly, so end up broke…
This is not a revelation though, but it’s something we should all focus more on. We all try to teach ourselves how to make more money, but so few learn how to control themselves.
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