Comments on: A Dollar Saved is Two Dollars Earned but Two Dollars Earned is Twenty Dollars Saved

By: Nse victor OKon

Nse victor OKon — Sun, 28 Jun 2009 12:09:48 +0000

Thanks for your posts here. They are lovely. But I want you to tip people more on how to earn more money adn how to utilize their times effectively well because it takes the rcih man the same hours in a day to become rich and the poor man the same hours to remain poor. What is the difference between the two?

By: CD Rates

CD Rates — Wed, 02 Jul 2008 13:32:37 +0000

No matter how much you earn, you should always put some away. Earnings (even for big-time CEOs) can change drastically. You can also have an unexpected events that have large expenses.

Savings 3 – 6 months of living expenses is always prudent.

By: magnesium

magnesium — Wed, 02 Jul 2008 13:05:59 +0000

From my point of view in order to avoid saving one should earn money enough

By: Chad @ Sentient Money

Chad @ Sentient Money — Mon, 30 Jun 2008 14:22:45 +0000

A second job is only one option. You could ask for a raise, start a side business, start a blog, etc. Don’t limit yourself.

By: Ann

Ann — Thu, 26 Jun 2008 17:04:08 +0000

I think you’re on the right track. Folks should keep in mind, though, that the more energy they expend on a second, part-time job, the less they’ll have to expend on their primary job. It might be better to make yourself as valuable as possible in your current position so that you can be promoted into a higher paying position.

Also, a second job can sometimes conflict with your current schedule. Your primary employer deserves to schedule you first, without consulting with you over your other job schedule. When they conflict, you really must honor your primary employer’s schedule. This could result in the loss of the second income.

By: Top CD Rates

Top CD Rates — Thu, 26 Jun 2008 15:53:44 +0000

Creating passing income is the key. There are many ways to do it. I think the interent still provides one of the best. You will have to invest some time upfront, but overtime, your actual time spent can decrease. You don’t have to invest a ton of money upfront.

By: marci

marci — Thu, 26 Jun 2008 15:28:04 +0000

In my case, the older I get, the more my Time is more Precious than Money. That’s why I cut my work week from 5 to 4 days per week – 8 hrs less.
It gets to a point where one has saved ‘enough’… enough to feel comfortable that it is enough. Everyone has a different point of view on what that figure is. For me, it is insuring that I have investments that will bring in $1000/month til I am 103… I live on that take home pay now very easily, with $$ to spare each month, so I feel it will be adequate when I retire. As the $$ invested will keep growing til retirement, there will be more monthly income at that time.

When you get near that point, the money is superfluous… it is not (to me) worth trading my time to earn it. Time spent with my family and grandkids is much more important to me. I will however keep looking for ways to save/stretch what I have so that it can go into savings for the future.

Just consider me ‘out of the rat race’

By: used cars

used cars — Wed, 25 Jun 2008 21:51:03 +0000

Investing money earned is also always important. No risk, no gain.

By: Praveen

Praveen — Wed, 25 Jun 2008 20:17:19 +0000

Hi,

This is a good article because so much is written about saving, but not as much is written about trying to earn more money.

But I did want to make a couple of points:

1. Getting a part-time job is equal to getting $500 every month only in the sense that once you get hired for a job, you don’t have to reapply every month.

But, a part-time job is not a passive, recurring income. It is an active income – you are trading hours for dollars.

It isn’t like writing a book, for example, and then selling it every month without having to re-invest labor.

So, “$20 earned with each $1 earned” doesn’t really apply with a part-time job.

2. You can make savings conform to “a dollar saved is 20 dollars earned” by concentrating on cutting re-curring expenses.

For example, you could save $100 by avoiding a one-time purchase. However, if you spend an afternoon to change your phone plan and shave $10 off the monthly rate, your savings will automatically recur monthly.