Once in a while in personal finance literature, we will come across an article about the advantages of saving money. The phrase “a dollar saved is two dollars earned” or something similar often comes up since it’s so catchy. After all, the savings are after taxes, and it’s always about how much you can keep and not about how much you earn right?
While many of those articles are true that savings is certainly very important, I feel that it underplays the importance of earning money. People seem to forget that in order to save, we need to earn the money first.
Earning money is about giving us choices. With money earned, we have freedom. We could spend it if we really like, but if we care about our future, we should save it. Saving a dollar is probably equivalent to earning two dollars, but if we don’t earn it, where is that dollar coming from?
We look for all the ways to save money. We spend so much of our time to read about how to save money and actually doing those things to save a few dollars. We, however, seldom read about how we can earn more money and spend even less time actually trying.
Let me tell you that spending a few hours a week extra to earn more money will give us so much. It will enable us to choose between keeping the money and spending it. It will give us freedom and confidence that we probably will do better at our primary jobs, snowballing this positive cycle to an even higher income.
Earnings and income are also cyclical in nature. Once we spending the time to earn more dollars, it usually means we will periodically receive more. For example, if we start a part time job and earn another $500 a month, we will get the same $500 extra each and every month. Saving money on the other hand is a one-time event. If we spend the time to save ourselves $500 dollars, we will need to spend more time to save another $500. That’s why while a dollar saved is two dollars earned, two dollars earned is twenty dollars or more saved.