Everyone has one. What’s your financial philosophy on income?
You simply can’t avoid believing in something. Even believing in nothing requires belief. Creating more income for yourself is just another area in your life where this is true. Even though you may not have realized it, you have assembled a personal philosophy on how best to handle your finances. This post will help you to see the broad ranges of opinions that are out there and to help you identify what your money philosophy is.
When it comes to widening the distance between your income and your costs, you’ll find that there are people standing at two very opposite ends of the spectrum.
If their budgets were hair, they’d be Rapunzel. The solution is simple when it comes to obtaining more income; earn more and more money.
Those arguing for more income point out that the frills in a budget become very miniscule when you achieve a much higher income. It’s all very simple. Never skimp on your morning Latte, instead make more money.
From this broad category, you can go in any number of directions on how to make more money. There are those who advocate entrepreneurship or passive investing. Others like to invest in securities. Many do a little of all of these things.
“You pay more than $1 for a bottle of shampoo? Are you crazy?” Penny pinchers don’t just focus on cutting all costs, they are willing to exclude most things from their life if they have to pay full price.
It’s difficult to summarize the thinkers that fall into this category, because there is widespread disagreement on how to go about cost cutting. However, there are two main groups: the maximizers and the minimizers.
The maximizers are the ones looking for a world where a free lunch exists. Since they will never find it, they simply look for the the most stuff for the lowest possible cost. Many turn to couponing and sale shopping to achieve their mission.
Minimizers are looking more to cutting out all the things they need in life with the exception of a suitcase and a mat in the corner of a heated garage. They seek less stuff, less retail and a simpler life. They may also shop sales and coupon, but the minimizer’s ultimate aim is a simpler life. The maximizer wants to get as close to unlimited free stuff as possible.
You can’t make up your mind so you do a little of both. It’s not so much about the how to earn more income as it is about actually making more income. It’s impossible to know what mix of making money/cutting expenses any given pragmatist will arrive at. I’m sure everyone is prone to accepting different ideas. So long as it works, you want to be on the gravy train.
Where do you fall? Who has the best philosophy for making income?