Go for the raise!

If you wish to improve your financial wellbeing, you can either reduce your spending or increase your income. You need to balance both approaches, but I believe that people default to cutting costs and underweight the importance of growing income.

Saving requires us to watch every dollar we spend very closely. This can be hard in a number of ways:

  1. It requires a lot of decision-making, which can take a lot of energy.
  2. It can cause anxiety if we’re not doing it well or it’s causing us to miss out on things we’d really love to do.
  3. Every decision to NOT spend money is a one-time benefit (you either have the money or you don’t).

Getting a raise or working in a new job with a higher salary has a number of benefits:

  1. Only one big action is required (ie, get the raise), compared with saving which requires heaps of mini-actions.
  2. You can approach life from an abundance perspective (what CAN I do with my money rather than what CAN’T I do with my money).
  3. The increased income is recurring, which means you will enjoy the extra income every year.

So if you want to save an extra $5,000 this year (and every year after), go for the raise!


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