Simple Math

Sep 2, 2019 by

money puzzle pieceOne of the more popular New Years resolutions is to save more money. If that’s among your goals this year, please study this equation:

Money Saved = Earnings − Spending

Not counting extraordinary events like winning the lottery, to save more money you’ve got to do one of two things, or both. You must


→ Earn more money, and/or

→ Spend less money

If you’re serious about a saving goal, you’ll have to do more than say you want to save more. You need an action plan. And the sooner you start, the more progress you’ll make toward your concrete goal.

How to Earn More

  • Get a higher paying job
  • Ask for a raise
  • Get a part-time job and work some evenings or weekends
  • Start a side hustle (Blogging’s easy—even I can do it. Not well, but I can do it.)
  • Take in a boarder or roommate
  • Check out peer-to-peer lending
  • Sell some of the useless junk you’ve collected over the years
  • Share your car
  • Write and publish an eBook (you really do know a lot)
  • Become an Apple At Home Advisor

How to Spend Less

  • Make a budget and track your spending
  • Stop eating food that’s slowly killing you
  • Sell a car and join a carsharing organization
  • Take your lunch to work
  • Get competitive quotes for each of the insurance policies you buy
  • Twice a week ride a bike instead of drive
  • Don’t shop
  • Get rid of that self-storage rental unit
  • Cool relationships with friends for whom fun = spending money
  • Break your smartphone addiction
  • Ditch cable and your landline—they’re so 20th century (and better, cheaper alternatives exist!)

Your Ideas for Saving More

Please comment and suggest your additions to the lists above. The more creative the better!

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  1. You math is spot on. It is funny, yet sad, that most people cannot figure out that is how you save money. Make more, spend less,or both.

  2. It’s a simple equation, yet hard for many to handle. I wish we, as country, could have considered simple math before becoming a debtor 🙂
    As for individuals, the tips you noted are all good. Self-storage units jump out at me as a waste for many people. Not all of course, as there are very legitimate needs for them for some people. I do think that many folks keep things in storage longer than expected, endure price increases, then don’t realize how much effort can be involved in moving things. Best to purge often!

  3. What about getting a part time job, or building a side business. You can build a side business by obtaining two clients and building on from there.


    Increase cash flow by: increasing exceptions on w4 and paying off debt.

  5. Squirrelers: I couldn’t agree more with you about the country not grasping this equation. And yes, frequent purging is good for one’s money health!

    Moneywatch: Revisiting those W-4 withholdings is a great one, especially since payroll tax withholding just reverted to its ‘normal’ level. No reason to let Uncle Sam hold your money for you all year. Paying off debt of course would consume cash in the short run but can cut loads of interest cost over time, making saving easier.

  6. Brick By Brick Investing

    Such a simple equation yet so hard to implement for many!

  7. Funancials

    I love when people ask how this person became rich or why this person has so much money – like it’s a big secret.

  8. Lorillia|Your Money Mentor

    The equation will hold to be helpful whether one has a big income or a small one. The first step after earning is to save and then get a portion of those savings to invest on things that will bring money back.

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