29 Jul
2010

If you want to get ahead financially, pay down your personal loans, and put money aside, you need to focus on bringing in more money as well as focus on savings. Savings alone will not suffice, because:

1) If you focus on savings only, you get into a scarcity mindset. When you focus on tightening your belt, you usually feel like you are depriving yourself. This may work for a bit, but eventually you will want to indulge yourself with a new gadget or purchase. Plus, if you are only focusing on saving, you can only save so much, so there is a financial glass ceiling that you will hit each time. When you save and bring in more money by increasing your income, you feel more abundant and you focus on having more money, not spending less. This subtle difference can make you feel more positive about money and about the positive changes you are making to your finances.

2) If you combine savings with more cash, you get explosive results. Savings alone will help, but when you combine more income with savings, you get enough money to pay down your personal loans and put towards savings.

3) It feels great to bring in more cash. When you get creative about bringing in more money, you feel more in control of your finances and more hopeful about your future.