Monday

Is It Tougher To Save Money Or Make More?


As I have been struggling recently to both make and save money I got to wondering which was tougher for me, and for others. A person must, obviously, have an income before any saving can begin. Before I lost my full time job over two years ago both making and saving money were locked into auto-pilot. When I received my annual raise I would increase my savings account direct deposit accordingly. Most of my coworkers would talk about something they would now be able to buy, such as affording a new car payment, or to throw more money at a credit card or other bill, or increasing a service such as going to a more extensive cell phone plan or bumping up to the next cable TV plan. Rarely was there any mention of saving anything at all. Being locked into the consumption culture made it much tougher for them to save.

When I lost my job I decided, because I had saved some money and received a generous severance and transition package, to try to make money outside of the usual boundaries; namely, not working for someone else. I had dreamt before, like many others, of striking out on my own journey of self-employment. I had read many accounts by others about their struggles to make it on their own and a reoccurring theme was how long it takes and how hard it is. In the back of my mind I always thought there was a little self-aggrandizing going on in making it sound so hard. Two plus years into my money making experiment I have to tell you they are not exaggerating at all.

When you work for someone else everything is already in place for you to begin your job, from the actual building to tax withholdings to a weekly schedule and the tools you need to perform your duties. Strip all of that away, including automatic raises and savings plans, and imagine having to build up and create all of it yourself. It’s intimidating, frustrating, and occasionally, when everything goes right, one of the best feelings you will ever experience.

As for which is tougher for me now, saving money or making more, I have to say my focus is entirely on making more and there is no savings plan. I don’t make enough to save any. So currently it is tough to make money and nearly impossible to save any. But I’m working on that.

Has the Great Recession and the “new frugality” changed your money making and saving habits? Which is tougher for you: to make more or to save it?

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