How to get a raise instantly

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Most people think that the solution to their financial problems is more money. If they could just get a few more dollars each month, they would be able to make ends meet. Larry Burkett used to tell a story of three couples, each with different incomes and expenses, yet they all three said the same thing. The cause of their financial problems was too little income.

Although I understand the logic behind the statement, the logic really is flawed. The answer to the problem isn’t always more income, sometimes it is less expenses. That’s right. If you had less money going out, you wouldn’t need more money coming in. Instead of buying coffee that costs $5.00 a cup, you could make coffee at home for $0.50 a cup. Instead of paying for the extra fast internet you could cut back and go with the pretty fast internet. Instead of paying $6.00 a day to eat out for lunch you could bring lunch from home.

What does all of this do for your “I don’t have enough money” problem? If you aren’t spending as much, you don’t need as much. When you decide (and it is a choice) to cut your expenses, it is the same as getting a raise, and you didn’t have to ask your boss to get this raise. Actually, cutting your expenses is better than a raise for two reasons. First, because you have learned to live on what you are currently bringing home, you aren’t paying more taxes. Second, when you really do get a raise you will be able to use the raise for the important parts of your financial plan, like debt reduction and retirement.

I sure there are many other ways to cut expenses. Let’s hear them! What have you done recently to lower your monthly outflow? Leave a comment and share your ideas with others.