Should I earn more or spend less? – The approach to financial freedom

Earn more spend less? 🤷‍♂️

The “earn more spend less” discussion really provides personal value after you’ve described 
your version and started calculating what your vision requires.

Your mindset will be clearer on what road (approach) you’re going to take.

My very short answer to the question “earn more or spend less” is: 

Keep growing the gap between income and spending

The “earn more spend less” discussion
is actually the wrong debate.


Money gives opportunities

Higher earnings will give you opportunities to invest more (higher saving rate). You also don’t have to live extremely frugal in the long process.


Earning more money will fast-track your path to a financial independence life in ways that penny-pinching never could.


Let me give you an example of a 50% saving rate:


If you earn 100.000EUR per year then you have 50.000EUR to invest in this example. 

It’s four times more than if you have 25.000EUR per year with the same saving rate.

In addition to that, you have 4 times more money to spend in your everyday life.

As you can see a high income put you in a very good position to achieve financial freedom (especially if you don’t use 4 times more).

It sounds like the way to go but you need to be in the right job position where it makes sense.

A small wage increase at your current job is not worth your time in my opinion.

You need to work smarter (Great examples are coming below).


💡 How much money will you earn in a new position at your current job? And what will it take for you?


My current job has limitations

In my current job, I have the opportunity to increase my salary (to earn more). Then I should focus on being promoted to the manager.

Unfortunately, the hourly wages will be almost the same because the managers work more hours than me.

I will come home later, have more stress in my life and use most of my energy at my job. I think it’s not a good option for me (even I don’t have kids).

I can also choose to study for 2 years (for free 😯 ) and expect to get a better-paid job in my field afterward.

However, studying will mean that I don’t have any salary for 2 years and must be very focused on the studies.

New investments will not be possible in that period. It’s not an option for me either because my job is our main income. I also don’t have the passion to do this. The reward, in the end, is too little. 

My salary is actually already close to the above-average here in Denmark.

In my current job, we have wage negotiations which means that my salary rises continuously.

Lately, a pay increase of 8.3% was negotiated over the next 3 years. In addition, I get a significant but fixed salary increase every 4 years

I don’t think the prospects for earning more are good in my present job (like many other jobs).

I, therefore, have no plans or ambitions for a much higher income from my job.

Instead, I have a “Plan B” 😎


Plan B – Start a side hustle


You can create more value for others in your spare time and earn more money.


This is the way for most people if the job (like mine) has some limitations. 

You must be a creator rather than a consumer! 😉

The very good thing about a side hustle is that you’re not dependent on this income and you may, therefore, be more selective in what you want to do.

I would suggest that you do something you really like and where you can see some opportunities. Otherwise, it will just be another job for you and it really won’t last for years.

Choose something that interests you.

Here are some great examples (with unlimited potentials):


  • Multi-Level Marketing (MLM)
  • Selling on eBay, Amazon, Craigslist, and Etsy
  • Have your own webshop, smartphone APP or online service
  • Create valuable content on YouTube, start a blog or make an eBook
  • Produce an audiobook
  • Sell services on Fiverr or Upwork
  • Sell photos online
  • Rent out a room in your house at Airbnb
  • Renting out your car
  • Start a food truck
  • Teaching or make courses online

There are a lot of options today but it requires a lot of effort and the desire to do it.

If you’re constantly working on your side hustle it can really be a life-changer for you 😎


You can actually find people that earned so much money on their side hustle that it ends up being their dream job. What a wonderful thing!

My side hustle

I chose to start this personal investment blog about how to become financially free with topics like this “earn more spend less”.

It’s my first side hustle and it has the possibility to bring some extra income along the way (hopefully 😀 ).



I started this blog because, at one point, I had changed quite a lot in my perspective on life and felt the desire to forward it. 

I also strongly believe that giving forward will bring more positive into my own life

It’s also fun to update my blog and it makes me more committed to reaching out to my own goals.

My understanding of topics becomes much better as I write about it on my blog. It’s really great for me.

There are so many positive things in addition to earning extra money so it creates a good balance.

Eventually will value for others become profitable for you… But an additional income should not be your sole purpose.


"We get paid for bringing value to the marketplace. It takes time,... but we get paid for the value, not the time."

When choosing your side hustle, consider the following:


  • Do I have an interest in this or is it only for the money?
    If you only do something for the money it will be very hard to maintain and do it. Execute on your passion and goals.
  • Will it bring great value to others?
    There must be something valuable in what you do. Maybe sell something cheaper or better than others. It must be different.
  • How do you get started?
    You must study all the time and try it out. Make a plan. You must expand your understanding continuously and keep working on it.


💡 What side hustle you like to do? Try to make a mindmap


Earning more money affect your emotions

More money between hands will for most of us lead to greater consumption. You will probably start persuades yourself.

I always wanted this…
It’s on sale now on black Friday…
Why can everybody else afford it…?
I’m doing fine and let me enjoy…
I actually deserve this after all…

Money will interfere with one’s emotions. It’s like a test.

There is also a lot of cultures (behavior and mindset) in how we deal with money.

You are maybe in a position where your surroundings expect something from you.

You feel external expectations and it will cost some money.

Perhaps it’s the location of your home, expensive branded stuff, car brands or other spending habits.

The good fact is the more money you make the easier it is to save. You will be able to have a much higher saving rate.  

You just have to keep up with your budget and stick to your saving rate.


Don’t be confused by what our society cultivates but instead live your life in harmony with your vision and goals.


"When we long for life without difficulties, remind us that oaks grow strong in contrary winds and diamonds are made under pressure."

Spending less is challenging but the most important


The more you can save each month and invest the faster you can become financially independent.

You have great prospects if you already live frugally with a high saving rate and still are happy about this lifestyle.

Maybe it seems like spending less is more manageable and is an easier approach than creating value for others.

You “just” need to stop doing things you always did before. You “just” need to stop drink Starbucks, stop buying expensive things, travel less etc.

Unfortunately, that is a simple thought. In reality, it’s not easy if you’re already used to all these things.

Habits are really hard to change
. You will experience negative feelings and frustrations when your life feels too compressed.

There must be a balance in your life and you need to take small steps toward this path if you wish it. You need to define why you do it and believe in yourself.


My saving rate


Personally, I’m saving more than 50% and it is difficult for many to stay on track at this level.

My mid-term goal is even harder and I want to save 70% of my income in the year 2020-2022.

To me, it’s about taking small steps and constantly paying attention to my goals and my vision.

Simultaneously I work on my side hustle (this blog) and try keep grow the gap between my income and my spending. That’s the tough but realistic way to success.

I have a monthly budget and I update it all the time. It’s a very important tool for me to track my spending habits and I specify how much my saving rate is.

I try to keep my consumption at a reasonable level where I have allocated a smaller part to myself (approx. 5-7% of my income). I try hard to prioritize the things I would like to buy.

You’ve probably noticed that the “Earn more spend less” question is actually the wrong debate. It’s a good idea to do both in my opinion.

We are all very different even we have the same interest in financial freedom. What makes sense for you may not give sense to others.

It’s entirely about how you like to approach financial freedom. The most important thing is that you stick to your realistic plan and believe in yourself.


That’s it. I am writing continuously while I’m through the process myself. I therefore only write what has worked for me. I hope you liked this blog post about “earn more spend less”. 

The next blog post is about the management of the investment portfolio.


➡ How do I manage my investment portfolio?


Join the monthly:
Stay Focused Email List

and stay connected 🙂


  • Follow my journey and blog updates
  • Stay on track
  • Learn more during your own progress

Peter Michael

I'm an investor and the blogger behind My Investment Blog. I write about investment, financial independence, personal finance, and personal development. I try to combine the topics and show my journey towards financial freedom.

Recent Posts