The Money Muse

When it comes to financial success, there’s often an emphasis on saving. Financial gurus across the board recommend ways to cut costs, trim the fat from your budget, and practice frugality in order to reach your financial goals. But what if I told you that there’s an equally, if not more, powerful way to accelerate your journey to financial independence: increasing your income?

The Limits of Frugality

While frugality is undoubtedly important, it has its limits. You can only cut back so much before you start compromising on your quality of life. For instance, how long can you live without buying anything new, going out, or treating yourself to small comforts? At some point, living on less just becomes unsustainable.

More importantly, saving is only half of the equation. To achieve real financial success—whether it’s building wealth for retirement, buying a home, or funding your kids’ education—you need to be earning more. A higher income opens doors to larger savings and investments, helping you reach your financial goals faster.

Personal Experience: How Increasing My Income Supercharged My Financial Journey

When I graduated from college in 2015, my starting salary was $32,000. I was just starting to dream about financial independence, but that income barely covered my basic expenses, let alone allowed me to save for the future. While I could pinch pennies and cut back on a lot of things, I realized that no amount of frugality would be enough to build the life I wanted.

Fast forward to today, and I’m earning $70,000. Over the years, I’ve worked to increase my income by negotiating salary raises and taking on side hustles. This has had a profound impact on my financial journey.

Back when I was earning $32,000, saving 50% of my income (which is my goal today) would have netted me around $16,000 annually—a great start for someone right out of college in their early 20s. But in actuality, saving this amount at that income would’ve been nearly impossible and would have left me with next to nothing to live on. Every penny counted, and the margin for error was razor-thin. Now, saving 50% of my income equals around $35,000, a much more comfortable amount to live on, while still aggressively supercharging my investments.

Increasing my income has allowed me to live more comfortably while putting more money into investments, enabling me to save more, invest more, and get closer to financial independence.

The Power of Earning More

Here’s the thing: You can’t rely solely on frugality to get ahead. When I look at my own financial trajectory, I can see that the real power in my journey came from increasing my income. It’s allowed me to:

1. Save More: With a higher income, I’ve been able to allocate more money into my investment accounts—Roth IRAs, 401(k)s, brokerage accounts—and supercharge my path to financial independence.
2. Live Comfortably: Instead of constantly battling the urge to cut costs to the bone, I’ve found a balance between saving aggressively and still enjoying my life. I’m able to spend on things that matter to me without feeling guilty, because I’m earning more.

Ways to Increase Your Income

If you’re not where you want to be financially, the good news is that you don’t have to rely on just one income source. Here are a few strategies to consider:

1. Ask for a Raise: Don’t be afraid to negotiate your salary. Research shows that many people leave money on the table by not asking for raises when appropriate. Be prepared to demonstrate your value to the company and market rates for your position.
2. Change Jobs or Industries: If you feel stuck in your current role, it might be time to look for opportunities elsewhere. Switching employers or industries can sometimes lead to significant pay bumps.
3. Start a Side Hustle: Whether it’s freelancing, selling handmade products, or monetizing a hobby, side hustles can be a great way to add extra income streams. With platforms like Etsy, Fiverr, and Upwork, it’s easier than ever to earn money outside of your day job.
4. Invest in Education: You don’t need a traditional four-year degree to increase your earning potential. Consider learning new skills that are in high demand. You might choose coding, digital marketing, or project management, which can all significantly increase your earning potential.

Why Earning More is Crucial for Financial Independence

When you’re working toward financial independence (FIRE), it’s easy to focus solely on frugality and cutting expenses. However, the reality is that to achieve financial freedom sooner, you need to maximize your income. Increasing your income allows you to save and invest more, putting you in a better position to reach your financial goals faster.

Building wealth takes time, and having a higher income accelerates the process. Rather than constantly struggling with limiting your spending, increasing your earning potential creates more opportunities, more savings, and more wealth-building power.

The Bottom Line

While saving and budgeting are essential parts of the equation, increasing your income is often the key to reaching your financial goals faster. If you’re not where you want to be financially, start thinking about how you can boost your earnings. Whether through a raise, a career shift, a side hustle, or passive income, the opportunities to earn more are out there. With a higher income, you’ll be able to save more, invest more, and ultimately get closer to achieving financial independence.

For me, increasing my income has been one of the most rewarding parts of my financial journey. It’s allowed me to save aggressively, build wealth, and make more progress toward my financial goals than I ever could have on my initial salary alone.