The second thing … is cutting back the only way? No, it’s not. And in fact I feel cutting back is indeed getting harder. The cost of living has increased. If you dine out a lot especially, food costs are up by around 30 per cent. So for people who dine out really often, that’s where you now need to start to decide whether you want to do the harder part of prepping your own meals, or potentially keep up that dining out experience, but cut back on other areas in life.
However, I always feel that there’s always a limit (to cutting back) because the max you can go is just how much you spend. There is another way to it, which is to increase your earned income.
Andrea:
Okay, talk to me about that.
Dawn:
So when you increase your earned income, whether through active or passive sources, you can actually get a lot more money versus what you spend.
So when you increase that and still keep your spending moderate, you can actually get a bigger difference than simply trying to cut back, because there will be also this point when you save until you’re just miserable and (thinking) what’s the point of life?
Andrea:
Exactly. Then it feels like, “Oh my God, I’m working so hard to save and nothing is coming out of it. Is this really the only answer?”
Dawn:
