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Income & Thrift: The Two Strategies to Improving Your Finances

Income & Thrift: The Two Strategies to Improving Your Finances

    Every newspaper has ran a story about how to improve your finances in the past few weeks. The same goes for every news show — and most online media as well. No matter the source, though, every tip or trick falls into one of two categories: increasing your income or decreasing your spending. Basically everything you can do to improve your financial situation boils down to one of these two strategies: refinancing your mortgage is just a way to reduce the amount you’re paying on housing. Selling stuff on eBay that you don’t need is just a way to increase your income.

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    The Trouble With Time

    Most people have the same issue with these issues: time. It takes time to be thrifty and it takes time to have a second job. There are thousands of ways to cut costs — quite a few of them amount to doing something yourself rather than paying for, like cooking at home or mowing your own lawn. And while there are many ways to build up passive income, even those ‘passive’ streams require some effort on your part — advertising, maintenance and such. In general, you have to trade time for money. That means we have to manage our time as part of managing our money.

    On the surface, it seems like finding the time to cut expenses would be easier than finding the time to make more money. After all, if I was to cut out one hour in front of the computer a day, I would have all sorts of time to spend on projects that would save me money. I could make my own cleaning supplies or clip coupons or walk to the store instead of driving. But there is a limit to how much money a person can save. It is theoretically possible to get your expenses down to zero, although I don’t know anyone who has actually done it. But at that point, you would have to spend all of your time saving money — you wouldn’t have any time to earn money.

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    In contrast, it is possible to buy time if you have the money — if you’ve increased your income. You can outsource a significant chunk of your task list: hire a maid or an assistant or someone to handle whatever task you don’t have time to deal with. That approach can get expensive to the point of being painful, but it’s easier to increase your income than save money you don’t have. At least in theory, increasing your income can get you further financially than simple thrift.

    The Balanced Approach

    In practice, however, just chasing income isn’t enough to straighten out your finances. Instead, it’s a question of just how much you can earn and just how much you can save. Taking a look at those numbers can show that, at least in the short-term, it’s far more practical to take a combined approach. To decide just how to balance your own efforts, you’ll need to know how much you earn in an hour. Whether you’re thinking about taking on some overtime at your day job, picking up cash freelancing or even selling plasma, your hourly rate will help you decide just what thrifty tips actually make sense for you.

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    You can generally estimate how much a particular thrifty tip is likely to save you: going to the library to borrow books instead of buying them will save you the cost of a book, for instance. You can also estimate how long that task is likely to take you: going to the library might be a couple of minutes out of your way on the drive home and you’ll need a few minutes to browse, rather than the seconds required to purchase a book on Amazon. That means you can easily calculate what your hourly savings is. Those savings methods that save you more money than you can earn in an hour? Those are low-hanging fruit — actions that are valuable than working for the same amount of time. But those savings methods that don’t save you that much — less than what you can earn in an hour — well, they just aren’t worth it in most cases. If you can earn more money by working during the time you could have been making your own soap from scratch, it makes sense just to pick up the soap at the local Wal-Mart and move on.

    It’s possible to make the calculations far more complicated, of course: you can factor in the distance you might have to travel for certain savings, the costs of working and so on, but that sort of calculation takes time. Time, as we have established, is money.

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    Your Thoughts on the Matter

    There are a lot of bloggers who have made their support for either increasing income or decreasing spending quite clear (Get Rich Slowly, I Will Teach You To Be Rich and The Simple Dollar all come to mind as blogs that have discussed the matter). No matter whether people say that there should be a balance between the two strategies, most folks wind up prioritizing one over the other. I know I have — I generally find earning more money to be a better use of my time than extreme frugality — but I’m interested in which approach you feel more comfortable with and why. Please let us know which technique you favor in the comments!

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    Last Updated on May 14, 2019

    8 Replacements for Google Notebook

    8 Replacements for Google Notebook

    Exploring alternatives to Google Notebook? There are more than a few ‘notebooks’ available online these days, although choosing the right one will likely depend on just what you use Google Notebook for.

    1. Zoho Notebook
      If you want to stick with something as close to Google Notebook as possible, Zoho Notebook may just be your best bet. The user interface has some significant changes, but in general, Zoho Notebook has pretty similar features. There is even a Firefox plugin that allows you to highlight content and drop it into your Notebook. You can go a bit further, though, dropping in any spreadsheets or documents you have in Zoho, as well as some applications and all websites — to the point that you can control a desktop remotely if you pare it with something like Zoho Meeting.
    2. Evernote
      The features that Evernote brings to the table are pretty great. In addition to allowing you to capture parts of a website, Evernote has a desktop search tool mobil versions (iPhone and Windows Mobile). It even has an API, if you’ve got any features in mind not currently available. Evernote offers 40 MB for free accounts — if you’ll need more, the premium version is priced at $5 per month or $45 per year. Encryption, size and whether you’ll see ads seem to be the main differences between the free and premium versions.
    3. Net Notes
      If the major allure for Google Notebooks lays in the Firefox extension, Net Notes might be a good alternative. It’s a Firefox extension that allows you to save notes on websites in your bookmarks. You can toggle the Net Notes sidebar and access your notes as you browse. You can also tag websites. Net Notes works with Mozilla Weave if you need to access your notes from multiple computers.
    4. i-Lighter
      You can highlight and save information from any website while you’re browsing with i-Lighter. You can also add notes to your i-Lighted information, as well as email it or send the information to be posted to your blog or Twitter account. Your notes are saved in a notebook on your computer — but they’re also synchronized to the iLighter website. You can log in to the site from any computer.
    5. Clipmarks
      For those browsers interested in sharing what they find with others, Clipmarks provides a tool to select clips of text, images and video and share them with friends. You can easily syndicate your finds to a whole list of sites such as Facebook, Twitter and Digg. You can also easily review your past clips and use them as references through Clipmarks’ website.
    6. UberNote
      If you can think of a way to send notes to UberNote, it can handle it. You can clip material while browsing, email, IM, text message or even visit the UberNote sites to add notes to the information you have saved. You can organize your notes, tag them and even add checkboxes if you want to turn a note into some sort of task list. You can drag and drop information between notes in order to manage them.
    7. iLeonardo
      iLeonardo treats research as a social concern. You can create a notebook on iLeonardo on a particular topic, collecting information online. You can also access other people’s notebooks. It may not necessarily take the place of Google Notebook — I’m pretty sure my notes on some subjects are cryptic — but it’s a pretty cool tool. You can keep notebooks private if you like the interface but don’t want to share a particular project. iLeonardo does allow you to follow fellow notetakers and receive the information they find on a particular topic.
    8. Zotero
      Another Firefox extension, Zotero started life as a citation management tool targeted towards academic researchers. However, it offers notetaking tools, as well as a way to save files to your notebook. If you do a lot of writing in Microsoft Word or Open Office, Zotero might be the tool for you — it’s integrated with both word processing software to allow you to easily move your notes over, as well as several blogging options. Zotero’s interface is also available in more than 30 languages.

    I’ve been relying on Google Notebook as a catch-all for blog post ideas — being able to just highlight information and save it is a great tool for a blogger.

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    In replacing it, though, I’m starting to lean towards Evernote. I’ve found it handles pretty much everything I want, especially with the voice recording feature. I’m planning to keep trying things out for a while yet — I’m sticking with Google Notebook until the Firefox extension quits working — and if you have any recommendations that I missed when I put together this list, I’d love to hear them — just leave a comment!

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