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Being frugal vs boosting income?

bp5678
bp5678 Posts: 413 Forumite
Third Anniversary 100 Posts Name Dropper
edited 29 May 2018 pm31 2:07PM in Boost your income
Sometimes I find it easier to simply do less rather than find ways to make more. What's your thoughts on this tactic?

Eg I bring food from home in rather than go to the shops. I cycle into work when nice weather rather than drive (although i feel the amount of food i eat after a cycle is the same cost as the fuel). I do low cost things at weekends or find enjoyment in doing things at home that simply do not cost money at all.

Comments

  • mikep22
    mikep22 Posts: 1,540 Forumite
    Part of the Furniture 1,000 Posts
    This is entirely down to the individual and their life circumstances, its quite difficult to quantify really.

    Generally you want a balance in life, which will be different for everyone. Clearly if you are living above your means then you will want to be more frugal, but with that, if you want to treat yourself to something, you might want to boost your income.

    Some people do the boosted income for other reasons, like savings and such like. Each to their own.

    I drive only 15 mins to work and back each day and thats a full tank of petrol (£40) a month. If you are eating around that, that might well be something to be more frugal with lol.
    Debt: May 15: £17335 Jul 16: £13874 Jan 17: £11,606 Dec 18: £8,308 Sept 19: £4,969 Jul 21: £890
    :beer:
  • lessonlearned
    lessonlearned Posts: 13,337 Forumite
    10,000 Posts Combo Breaker I've been Money Tipped!
    edited 29 May 2018 pm31 5:10PM
    This might help you decide.......

    If you save £1 then you save a full £1. If you earn £1, then you will have to pay income tax, NI and maybe a pension contribution, so you may only end up with about £0.50p extra.

    And I guess it also depends on how much you value your time.

    How long would it take you to earn that £1 (£0.50) and how long would it take you to save that £1.

    Some savings are quick and easy, some are perhaps not worth the hassle.

    Taking a pack lunch is a simple easy win. Not only are you saving money, but you are also probably eating better, healthier and more nutritious food. If you enjoy cycling then that's another easy win. And if you are able to enjoy the simple things in life then even better.

    As long as you are happy in your choices then that's all that really matters.

    If you want to lay down the foundations of wealth, then ideally you need a two pronged approach. Maximise your income, whilst keeping your outgoings as low as you are comfortable with.
  • mikep22
    mikep22 Posts: 1,540 Forumite
    Part of the Furniture 1,000 Posts
    This might help you decide.......

    If you save £1 then you save a full £1. If you earn £1, then you will have to pay income tax, NI and maybe a pension contribution, so you may only end up with about £0.50p extra.

    And I guess it also depends on how much you value your time.

    How long would it take you to earn that £1 (£0.50) and how long would it take you to save that £1.

    Some savings are quick and easy, some are perhaps not worth the hassle.

    Taking a pack lunch is a simple easy win. Not only are you saving money, but you are also probably eating better, healthier and more nutritious food. If you enjoy cycling then that's another easy win. And if you are able to enjoy the simple things in life then even better.

    As long as you are happy in your choices then that's all that really matters.

    If you want to lay down the foundations of wealth, then ideally you need a two pronged approach. Maximise your income, whilst keeping your outgoings as low as you are comfortable with.

    I am unconvinced Her Maj will be coming after you for your £1 survey win, to be fair. Yes you should be paying taxes if your income as a whole exceeds the threshold. Which you would never do from surveys alone.

    The rest are fair points, I dont agree with some things I read that all healthier food is expensive - a bowl of pasta with tomato/basil and mozarrella could set you back about 50p per portion, even with fresh basil (20p spaghetti, 20p chopped toms, 70p basil and 40p mozarella - min 3 portions). But food is a balancing act we all have to face, though in the grand scheme of things, is a relatively small expense.

    And for everyone it is different, so its a hard one to say.
    Debt: May 15: £17335 Jul 16: £13874 Jan 17: £11,606 Dec 18: £8,308 Sept 19: £4,969 Jul 21: £890
    :beer:
  • bgh
    bgh Posts: 24 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    All great points, and an interesting thread!



    What I'd also like to know more aboiut is how to best invest savings (small and larger amounts). It's something i struggle with.
  • lessonlearned
    lessonlearned Posts: 13,337 Forumite
    10,000 Posts Combo Breaker I've been Money Tipped!
    Hi bgh. Perhaps have a look at the savings and investment board. There are some very knowledgeable people on there.
  • droopsnoot
    droopsnoot Posts: 1,828 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    mikep22 wrote: »
    I am unconvinced Her Maj will be coming after you for your £1 survey win, to be fair. Yes you should be paying taxes if your income as a whole exceeds the threshold. Which you would never do from surveys alone.

    I suspect LL was referring to each pound you earn in normal employment, rather than a specific single pound earned which, as you say, would not be taxed (don't they say to ignore anything under a tenner?).

    I think you have to balance things out - there's a fine line between frugality and just being tight - and if there are ways to save, then it's good to do it. Not buying stuff is habit-forming, though, and it doesn't do to let it take over.

    bp5678 wrote: »
    I cycle into work when nice weather rather than drive (although i feel the amount of food i eat after a cycle is the same cost as the fuel).


    It's not just the cost of fuel though - you've got other bits of wear and tear on a car. But you've also got the health benefits of cycling on the plus side.
  • Ilona
    Ilona Posts: 2,449 Forumite
    When I was in my mid fifties I had a lightbulb moment. I wasn't enjoying my work as much as I had done. I realized that if I didn't spend any money, I didn't have to earn it, so I cut my hours and went part time. This freed up time for a diferent kind of work on my new frugal life.

    The pressure to earn was gone, I watched my bank balance go down, and surprisingly I wasn't bothered. When It dropped too low, I had a mortgage, I did some work to boost it up again. So in answer to your question, it's about balance. Deciding how much you need to live, how much you need to buy, and stopping working when you have earned enough to cover that. The more simple your needs, the less you need to earn.

    ilona
    I love skip diving.
    :D
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