Making Money vs. Saving Money: Which is More Important?

For many people being financially free is their ultimate goal to allow them to live the life they have been dreaming of, but how to get there? Is it through saving money or making money? Let’s find out.

Both making money and saving money is important to achieve financial stability. Many experts state that technically there is no limit on how much you can earn, and as such you should focus on that, which is true.

However, there is a key point to be made about being strict about your earnings and saving them. There are many people who earn well above seven figures a year and are living paycheck to paycheck. They might be living an exquisite life from an outsider’s perspective but are in reality neck-deep in debt.

The best thing to do is both, but that doesn’t answer our question of which is better. In order to do that we need to dive deeper.

Why you should focus on earning more

Let’s say, hypothetically, that you have an entry-level job and it can be pretty tough to make ends meet. At this stage saving money would be very difficult, especially if you are already being very frugal with your earnings.

If your expenses are very close to your overall income, then it would be almost a no-brainer to increase your earnings so that you aren’t a late paycheck away from poverty.

In this instance, you would need to earn more so that you can afford to set aside money for unexpected expenses, etc.