When you first decide to get serious about your money, two ideas usually pop up right away:
- I should spend less.
- I should make more.
Both are solid instincts. But if you’re trying to get traction quickly - and without burning yourself out - cutting expenses is usually the better place to start.
Let’s talk about why.
Every Dollar You Spend Costs More Than a Dollar
Here’s an annoying but important truth:
You don’t just spend dollars - you spend after-tax dollars.
A penny saved is MORE than a penny earned.
If you’re in a 25% tax bracket, spending $100 means you have to earn about $133 to do it. That fancy dinner didn’t just cost you $100 - it cost you extra hours of your life.
This is one of the most overlooked ideas in personal finance, and it’s a big reason why expense reduction punches above its weight.
Cutting Expenses Is Immediate (Growing Income Usually Isn’t)
Growing your income is great - but it often comes with strings attached:
- Asking for a raise
- Starting a side hustle
- Learning a new skill
- Working more hours
All of those take time, energy, and sometimes money upfront.
Cutting expenses, on the other hand, can start today:
- Cancel a subscription you forgot about
- Downgrade a plan you don’t fully use
- Eat out one less time per week
You don’t need permission. You don’t need training. You don’t need a second job. You just need awareness - which is exactly what a budgeting app like FreeBudget is built to give you.
Expense Cuts Are Permanent Wins
Here’s another underrated benefit:
Most expense cuts stick.
Canceling a $15/month subscription saves you $180 every year.
Switching a $60 phone plan to a $15 one (like Mint Mobile) saves you $540 annually.
That’s money you never have to earn again.
Outside of a full time job, Income increases almost always require time / effort / energy to continue those increased earnings. Increasing income is still great - and something to pursue at the right time. If we had to choose a starting place, though, it’d be cutting expenses first.
Cutting expenses builds a strong financial foundation that future income increases can sit on top of.
Less Stress, More Control
Trying to grow income can feel like pushing a boulder uphill. Cutting expenses feels more like cleaning out a closet. Not glamorous, but surprisingly satisfying.
When you see where your money is actually going (thanks to FreeBudget), you regain control. And control reduces stress - something no paycheck alone can fix.
The Smart Order of Operations
This doesn’t mean growing your income is a bad idea. It’s just about sequence.
A simple approach:
- Track and understand your spending
- Cut the easiest, least painful expenses
- Stabilize your cash flow
- Then focus on growing income
When you do increase your income later, it actually sticks instead of vanishing into mystery spending.
Final Thought
If you’re just starting out, don’t feel pressure to “hustle harder” right away. Start by making your money work smarter.
Because saving one dollar is often easier - and more powerful - than growing income at first.
And that’s a budget win worth celebrating. 🎉
