Lottery winnings, investments, and inheritances aside, there are only two basic ways to increase your personal wealth: spend less or earn more. Ironically, spending less may be your most immediate route to having “more”–more affluence and more confidence.

Will earning more make things easier? Earning more money might alleviate your current financial pressures, but it also might bring new ones. More money gives you more psychological license to “live it up.” Instead of the reduced debt and increased savings you might logically assume would result from a jump in income, what usually happens is that you end up spending a little more on living and not so much on your goals.
In the earn-more school of thought, your career is your most important asset, more crucial than any investment. You strive for a good salary to advance economically, and your home equity and your portfolio are just “icing on the cake” compared to the “big bucks” you pull down. Read More »