Earn more, Spend less
- Manyanshi Joshi
- Sep 18
- 7 min read
The phrase "Earn more, spend less" is a simple but powerful principle in personal finance. It's about increasing your income while managing or reducing your expenses so you can build wealth, achieve financial freedom, or meet your financial goals. Here's a breakdown of what it means and how to put it into action:
🟢 Part 1: Earn More
Increasing your income gives you more financial flexibility and opportunities. Here are some ways to earn more:
1. Negotiate Your Salary
Ask for a raise or promotion if you've been performing well.
Research market rates for your role and present your case with confidence.
2. Side Hustles
Freelancing (writing, design, coding, etc.)
Ridesharing, delivery services, or gig economy work
Online businesses (dropshipping, print-on-demand, etc.)
Tutoring, coaching, or teaching online
3. Invest in Yourself
Learn new skills that are in demand (e.g., digital marketing, coding, copywriting)
Get certifications or further education to increase your value in the job market
4. Invest for Passive Income
Real estate, dividend-paying stocks, or REITs
Start a blog, YouTube channel, or digital product business
🔴 Part 2: Spend Less
Cutting unnecessary expenses helps you save more of what you earn. It’s not about being cheap — it’s about being intentional.
1. Track Your Spending
Use a budgeting app or spreadsheet to see where your money goes
Categorize expenses to spot overspending
2. Cut Unnecessary Costs
Cancel unused subscriptions
Cook at home instead of eating out
Buy generic brands instead of name brands
Avoid impulse buying
3. Live Below Your Means
Don’t increase your lifestyle every time your income rises (avoid “lifestyle creep”)
Drive a reliable used car instead of financing a new one
Rent or live in a modest home
4. Use the 50/30/20 Rule
50% needs, 30% wants, 20% savings/investments
⚖️ The Balance Is Key
You don’t have to do everything at once.
Start small: maybe cut $100 in expenses and find a way to make an extra $100 this month.
Over time, this gap between income and expenses becomes your "freedom fund" — money you can use for saving, investing, or starting your own business.
Let’s build a simple, personalized action plan to help you earn more and spend less, even if you’re starting from scratch.
To keep this useful and adaptable, I’ll give you two parts:
A general action plan you can customize right away.
Follow-up questions (if you want to get more personal/precise).
✅ ACTION PLAN: EARN MORE, SPEND LESS
🟢 PART 1: EARN MORE
🎯 Goal: Increase your monthly income by ₱5,000–₱10,000 (or more) within 1–3 months.
✅ Step 1: Assess Your Current Skills
Write down all the skills you have (e.g., typing, English fluency, social media, writing, Excel, sales, etc.)
Identify which of these are marketable online or locally.
✅ Step 2: Pick 1 Quick Income Stream
Start with something you can earn from within 7–30 days:
Option | Description | Potential Monthly Income |
Freelancing | Use platforms like Upwork, Fiverr, OnlineJobs.ph | ₱5,000–₱50,000+ |
Tutoring/Coaching | Teach English, math, or skills online | ₱5,000–₱20,000 |
Buy & Sell | Start with small capital (clothes, gadgets, food) | ₱2,000–₱20,000 |
Online Side Gigs | Surveys, micro-tasks, captioning, transcription | ₱1,000–₱5,000 |
Extra Work Locally | Weekend or evening jobs (delivery, food stalls) | ₱3,000–₱10,000 |
✅ Step 3: Upskill
Choose 1 skill to improve over the next 30–60 days. Free resources:
YouTube
Coursera or Udemy (watch for free courses)
LinkedIn Learning
📌 Focus areas: digital marketing, Canva design, Excel, coding, writing, or virtual assistance.
🔴 PART 2: SPEND LESS
🎯 Goal: Reduce your monthly expenses by ₱2,000–₱5,000 within 1 month.
✅ Step 1: Track Your Spending
Use a notebook, Google Sheet, or app like Spendee, Money Manager, or even Notion.
Track every peso for 7 days. You'll be surprised where money leaks.
✅ Step 2: Identify and Eliminate “Silent Killers”
Common spending traps:
Expense | Replacement / Tip |
Daily takeout/foodpanda | Prep meals at home 3x a week |
Subscriptions (Netflix, Spotify, etc.) | Share plans or cut unused ones |
Load/data | Use promos or Wi-Fi when possible |
Shopping "just because" | Unfollow sales pages on social media |
✅ Step 3: Apply the 3-Envelope Method
Needs (rent, food, bills): 50%
Wants (eating out, shopping): 30%
Savings/Investments: 20%
If you can’t save 20% yet, start with 5–10% and work up.
📊 Monthly Progress Check
Metric | Target | Actual |
Income Increase | +₱5,000+ | (fill in) |
Expense Decrease | –₱2,000 | (fill in) |
Savings Rate | 10–20% | (fill in) |
🎯 Final Tip: Start Simple, Stay Consistent
Even ₱1,000 more income and ₱1,000 less spending = ₱2,000 freed up per month — that’s ₱24,000/year. Small moves, big impact.
Saving wisely is more than just setting money aside — it’s about doing it with purpose, strategy, and discipline so your money works for you, not just sits idle.
Here’s a clear, step-by-step guide to saving wisely no matter your income level:
✅ STEP-BY-STEP: HOW TO SAVE WISELY
🔹 1. Set Clear Saving Goals
Don't just save randomly. Give your money a job.
Goal Type | Examples | Time Frame |
Emergency Fund | 3–6 months of expenses | Short-term |
Short-Term Goals | New phone, travel, appliance | 3–12 months |
Long-Term Goals | Business capital, house, retirement | 1+ years |
📌 Tip: Write down each goal and its target amount + target date.
🔹 2. Use the 50/30/20 Rule (or a Custom Version)
Start with this basic budgeting method:
50% Needs – rent, food, bills
30% Wants – shopping, eating out
20% Savings/Investments
🔁 If your income is low, even starting with 10% savings is great. You can increase later.
🔹 3. Automate Your Savings
The best way to save is to never "see" the money in the first place.
Set up auto-transfer from your main account to a separate savings account on payday.
If cash-based, set aside money in a labeled envelope immediately after receiving income.
📌 Tip: Out of sight, out of mind = less temptation to spend.
🔹 4. Use the Right Saving Tools
Not all savings accounts are created equal.
Tool | Best For | Notes |
High-interest savings account | Emergency fund | Look for 2%+ interest |
GCash GSave / Maya / Tonik / CIMB | Easy online saving | Some offer 3–6% per annum |
Time deposit | Long-term, low-risk savings | Lock-in period, higher interest |
"Invisible" coin banks | For small daily savings | Works well for beginners |
🔹 5. Track Your Progress
Review your savings monthly.
Use a simple tracker (spreadsheet, app, or notebook).
Celebrate small milestones (₱1k, ₱5k, ₱10k…)
🔹 6. Avoid These Common Mistakes
❌ Saving what's left over✅ Save first, spend what’s left.
❌ Keeping savings in the same wallet/account as spending money✅ Separate them completely.
❌ Dipping into savings for non-emergencies✅ Treat savings as untouchable unless for its goal.
🔹 7. Grow Your Savings (Eventually)
Once you’ve saved your emergency fund:
Put extra savings into investments like:
Mutual funds or index funds
UITFs (via banks or GCash)
Stock market (only with knowledge)
Business capital
🎯 Example: “Save Wisely” Plan
Goal | Target | Monthly Saving | Tool |
Emergency Fund | ₱30,000 | ₱2,500 | CIMB / GCash GSave |
New Laptop | ₱20,000 | ₱1,500 | Time Deposit |
Travel Fund | ₱10,000 | ₱1,000 | Envelope / GSave |
Total Monthly Savings: ₱5,000
Knowing how much of your income to save depends on your:
Income level
Expenses
Financial goals
Debts or obligations
But there are solid rules and flexible strategies you can use right away. Here’s how to figure it out:
✅ Step 1: Use a Simple Rule — 50/30/20 (or a Custom Version)
The 50/30/20 Rule is a great starting point:
Category | % of Income | What It Covers |
Needs | 50% | Rent, utilities, food, transport |
Wants | 30% | Shopping, dining out, entertainment |
Savings & Debt Repayment | 20% | Emergency fund, savings, investments, or debt payments |
➡️ So, save at least 20% of your income if your budget allows.
✅ Step 2: Adjust Based on Your Current Situation
Here’s how to tweak that % depending on where you are financially:
Your Situation | Suggested Saving % | Focus |
Low income / tight budget | 5% – 10% | Start small, focus on building habit |
Stable income, low debt | 20% – 30% | Emergency fund, goals, investing |
High income or no debt | 30% – 50% | Wealth-building, early retirement |
📌 TIP: Always save before you spend, not the other way around. This is called "paying yourself first."
✅ Step 3: Break Your Savings into Buckets
Let’s say you save ₱5,000/month. Don’t put it all in one place — divide it like this:
Purpose | % of Savings | Monthly Example |
Emergency Fund | 40% | ₱2,000 |
Short-Term Goals | 30% | ₱1,500 |
Long-Term / Investments | 30% | ₱1,500 |
You can adjust these based on your priorities.
✅ Step 4: Try This Shortcut Formula
Here’s a fast formula to calculate how much to save:
Target Savings = (Income – Total Monthly Essentials) × 20% to 30%
Example:
Let’s say:
Income = ₱25,000/month
Essentials = ₱15,000 (rent, food, bills)
Discretionary = ₱5,000
(₱25,000 – ₱15,000) × 30% = ₱3,000 saved per month
✅ Bonus: “Save What You Can” Hack
If you really can’t follow % rules, try this method:
Save a fixed amount weekly, like ₱50, ₱100, or ₱200.
Use a coin bank, GCash Save, or a separate bank account.
Slowly increase it monthly.
Even ₱1,000/month = ₱12,000/year. It adds up!
✅ Conclusion: Earn More, Spend Less
The principle of "earn more, spend less" is a simple but powerful foundation for achieving financial freedom and stability. It’s not about being rich overnight — it’s about creating a sustainable gap between what you make and what you spend, and using that gap to build the life you want.
🔑 Key Takeaways:
Earning more gives you options.– Upskilling, freelancing, and side hustles can increase your income over time.
Spending less gives you control.– Budgeting, tracking expenses, and avoiding lifestyle creep protect your finances.
Saving wisely bridges the two.– Save with purpose, automate it, and aim for consistency, not perfection.
The gap is your power.– Every peso between income and spending can fund goals, investments, and security.
💬 "It’s not how much you make, but how much you keep that makes the difference."
Start small. Stay consistent. Be intentional. That’s how you grow your money — and your freedom.
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