Excess cash may be deployed to reducing your debt or contributing to your investments. They can also increase the savings you hold in your bank. Short of a windfall, most wealth start from this excess cash; investments are made with these seemingly minute excessive cash that gradually adds up over time.

How Do I Save More?Credit: Image from Flickr.com and Released for Use for Any Purpose with Attribution to s_falkow

Forgive me for the simplicity of the following statement, but I found that this is the only means of generating that excess cash. It is simple arithmetic, but its simplicity has been lost on most of us who are left bewildered at our empty wallets.

The crux of the article may thus be expressed as follows:

Income – Expenses = Excess/Deficit

  • Increase Income
  • Decreases Expenditure

Even then, most of us only choose to exercise our influence on one aspect of the equation, while content to ignore the other. And some of us has far too much expenditure which exceeds our income received.

Increasing Income

An income source is necessary for you to actually generate excess cash. Without an income, you would surely run into a deficit, long enough.

Utilize your ability; be it drawing for commission, cooking, writing articles or researching etc. What is it you know that is in demand, and may be exchanged for cash? A side job will add up (provided you do not spend it all away)

Do away with your unproductive hours watching television or lazing around and turn it into something useful like giving tuition, or writing a book. Even donating plasma gets you cash to stash aside in your saving account or to invest, whilst helping someone.

Internet Provides Opportunity

Were you to keep an open eye and mind, the Internet provides lucrative offers for those who want to make money. Some of the bloggers and webmasters have been earning from their blogs and websites respectively. Opportunities abound to make cash, why should you not join in?

Reducing Expenses

This by far, is much more important than increasing income in my opinion. Most of our financial woes come by not reducing our expenses quickly enough, not because we have too little income.

Lawyers are one of the higher paid professions, with the median* income of $89,032. Yet not all of them retire extremely wealthy. In order for those attorneys to convince their client they are wealthy and successful, they spend it on luxury goods like cars and branded suits. They spend and spend on what otherwise could be used to build their retirement nest.


You would do well to learn the lessons; too often, people focused on increasing their income, while unaware that their expenses grow along with their income too, so they often are left puzzled at the lack of improvement in their financial position (e.g. bank account) even after years and years of promotion and cash bonuses.

And for some of us, expenses may run higher than income. This is truely the time to pause. For people unfortunate enough to end up in such a situation without proactive corrective measures will soon chalk up credit card debts; digging deeper towards their own hole, while the balance in their bank account gets wiped clean or is quickly diminished and they will later find it extremely hard to get out.

Budgeting puts a leash to this otherwise invisible adversary to your finance. Examine all your expenses carefully, for once you put your expenses to light, will you scatter the indiscernible darkness consuming your income.


*Data gathered from:  http://swz.salary.com/SalaryWizard/Attorney-I-Salary-Details.aspx