What’s your financial philosophy on income?

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.

Income Generators:

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.

Penny Pinchers:

“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?

5 Responses to What’s your financial philosophy on income?

  1. Mr. PoP is definitely a minimizer. He detests shopping so he wants to acquire few things, and doesn’t mind paying more to make sure that he’ll never have to buy another one ever again.

    I’m more in the middle – which is good, otherwise we’d never have anything in the house. Someone needs to buy toilet paper, after all! But I don’t obsess about getting THE BEST deal and don’t try to get free stuff if it’s something I would never use anyhow.

  2. I would say that both my wife and I would probably be in the middle, or a pragmatist. We work as hard as we can to earn more income and finding different streams of it. We love to get deals and save money as well, but as with anything we like to have balance with it.

  3. It goes without saying that mastering both of these philosophies is the key to true wealth, just read The Millionaire Next Door and you can see that. When I was in school I was definitely in penny pincher mode. I feel like I got pretty good at it. Now that i’m free from school I’m focusing a lot on growing my income. Hopefully I will still be able to do that while keeping the penny pincher side of myself intact.

  4. I’m definitely a penny pincer, but when I have unexpected expenses I find any way possible to make some extra cash. I guess that would categorize me as a slight pragmatist. I would categorize myself as a minimizer, because if I don’t want to spend a certain amount on an item, I won’t get it at all.