Simple Math

Jan 7, 2013 by

money puzzle pieceOne of the more popular New Years resolutions is to save more money. If that’s among your goals for 2013, please study this equation:

Money Saved = Earnings − Spending

Not counting extraordinary events like winning the lottery, to save more money in 2013 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 2013 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 in 2013

  • 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)

How to Spend Less in 2013

  • 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 in 2013

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

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  • Grayson @ Debt Roundup

    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.

  • squirrelers

    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!

  • Ornella @ Moneylicious

    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.

  • Kurt Fischer

    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.

  • Brick By Brick Investing

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

    • Kurt Fischer

      Yeah–why is that?

      • Brick By Brick Investing

        If I had that answer I’m sure our country wouldn’t be in so much debt!

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  • 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.

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  • 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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