How To Spend Less and Make More Money

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How To Spend Less and Make More Money

Diving into your personal data reveals incredible insights

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Who doesn’t want to spend less and make more? Money forms the backbone of society. It’s the most common and recognized medium of exchange. However, money also causes considerable stress.

Money covers the bills and lets you go on vacations. A lack of it hurts both of those objectives. Many insights around personal finance focus on saving money and making more of it. Here are some tips to help you achieve both objectives.

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Start With Your Present Finances

You cannot improve unless you know your current finances. The two vital numbers are your income and expenses. The difference between these numbers is your profit.

I keep all of my income streams and individual expenses on a spreadsheet. I have data going back to 2017. I can see what income streams worked well and which expenses bit away most of my money. Assembling this data helps you reach critical realizations about your income and expenses.

I also keep spreadsheets for running, so I’ll use a running-related example. To date, I have run 7 marathons. Running 100 marathons in my lifetime is a doable goal. I recently ran two marathons within a two-week stretch (both in under three hours), so it’s possible from a physical standpoint.

Before running any marathon or race in general, I look back at my running spreadsheets. These spreadsheets go back to August 2020. I can see how I trained leading up to a marathon and how I approached post-marathon recovery. I also jot down thoughts after a race. If I run a good marathon, I write down what made it good. I’ll do the same exercise if I run slower than anticipated.

This data helps me perform better after each race. Tracking and gathering financial data on yourself will produce the same result. You’ll see what worked and what didn’t. You’ll see which side hustles produced the most income. If you jot your thoughts each month, you can track how you’ve felt across your journey.

Keeping a spreadsheet of this nature is vital for any meaningful goal. Some companies make billions of dollars gathering data about you and others. Data gathering works. This approach is more ethical and can help you in any area of your life, not just finances.

Less Is More

I am a minimalist. This lifestyle invites people to focus on what matters rather than embracing unaware consumerism.

I recently learned I was a part of Gen Z (I always thought I was a millennial). Gen Z tends to focus on experiences rather than materialism. I’ve been selling extra stuff around the house in recent months to help fund additional experiences.

I love running marathons, but I’ve slowed down on merchandise purchases. How many t-shirts, pants, shorts, hats, and gloves do we really need?

A smaller house is more affordable and easier to maintain. Easier maintenance lowers the likelihood of structural issues. A smaller house also lowers the cost of structural issues if they arise.

If a neighbor gets a fancy car, more power to them. Do not compete to have the most bling on the block. When it comes to wealth, looks can be deceiving. Rather than overanalyze someone else’s appearance, focus on your numbers.

Making More Money Starts With Your Hourly Rate

Raising your hourly rate increases your earnings potential. You can ask for a raise or look for a higher-paying job. Side hustles allow you to work additional hours and earn more in the process.

Most people only think an hourly rate applies to salaries. However, this hourly rate applies to everyone. If you are a business owner, track your hours and earnings.

When I write freelance articles for clients, I track my start and end times for each project. I saw common trends with high hourly rates and low hourly rates. Seeing the data made me more aggressive with pursuing higher paying contracts. It’s the reason I started offering freelance writing services to my audience rather than relying on pitches.

If you get paid by results, you need to calculate your hourly rate. The same rule applies for side hustlers.

Turn Hobbies Into Income

We all need to take breaks from our work. Breaks rejuvenate us. They make it easier to pursue deep work in the future. Write a list of different things you do during a break. Some of those hobbies can turn into businesses.

If you already play video games, why not become a streamer? Show your gameplay, talk about what’s happening, and engage with viewers in the chat. Some people make a full-time income from this activity. However, these people are the exception rather than the rule.

If you make money doing something you would have done anyway, it’s extra money. Get creative with how you view your hobbies. Monetizing through a platform model creates scalable income. This income model is the best one because you can grow your income without putting in more hours each week. Every income stream adds up. These income streams let you earn while having fun.

CONTRIBUTED BY Marc Guberti

Read More: 5 Money Mistakes You Must Avoid At All Costs

Read More: Focus on these 3 things to become wealthy

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