Why Making More Beats Saving More (And How the Wealthy Think About Spending)

Why Making More Beats Saving More (And How the Wealthy Think About Spending)

There was a time I believed frugality was the ultimate path to wealth.

I skipped Starbucks. I bought used stuff.  I price shopped for everything.  I drove a old (and very ugly) used car I bought at the salvage auction.  I was able to get my living expenses down to about 20% of my income. And while those habits weren’t necessarily bad, they didn’t move the needle the way I hoped. Despite my efforts, I still felt like I was stuck in a financial holding pattern. Sound familiar?

That’s when I realized a simple but powerful truth:

You can’t save your way to prosperity.

At some point, the path to financial freedom isn’t paved with tighter budgets — it’s paved with greater income. This shift in thinking changed everything for me.

The Limits of Saving

You can only cut so much before there’s nothing left to cut. And at a certain income level, saving more just doesn’t move the needle fast enough.

• You can only eliminate 100% of your expenses.

• But your income? That has no ceiling.

The problem with extreme frugality is that it gives a false sense of progress. Yes, cutting spending feels good in the short term. But it doesn’t scale.  Add to that the fact that saving money often involves spending time doing things you wouldn’t be doing otherwise.  Always remember the old adage “Time is Money”.

When I stopped spending time trying to save $3 and started thinking about how to earn an extra $30,000, my entire financial trajectory changed.

How High Earners Stay Broke

You might think this is just a problem for lower earners. It’s not.

I’ve met people making $250,000 a year who are still living paycheck to paycheck. Why? Because they fell into the trap of lifestyle inflation. As their income rose, so did their spending. New cars. Bigger homes. Fancier vacations.

It escalates quickly, mostly because with every move (bigger house, new country club, etc) comes ever more successful (appearing) “Joneses” to keep up with.

More income should mean more wealth. But without a strategy, it just leads to more expensive problems.

The Wealthy Think in Terms of Leverage

Wealthy people don’t obsess over budgets — they focus on leverage.

• Leveraging time through delegation

• Leveraging money through investments

• Leveraging knowledge and relationships to create opportunity

Their goal isn’t to live cheap. It’s to use their resources in a way that generates more of them.

Where I used to think, "How can I save $100 this month?" I started asking, "How can I earn $10,000 this month?"

The Power of Making More

When you make more, you get options.

You can:

• Invest faster

• Buy back your time

• Build safety nets and freedom buffers

Earning more also gives you something even more valuable than money: margin. That breathing room is where creativity, long-term planning, and real momentum begin.

The Right Way to Spend

This doesn’t mean becoming reckless with your money. It means spending intentionally.

Here’s a simple rule I adopted:

If it doesn’t put money in my pocket or buy back my time, I think twice.

And if I do want to splurge? I match that spending with an equal amount invested. Want a $2,000 vacation? Great. But I’m also putting $2,000 toward dividend stocks or real estate.

From Scarcity to Abundance

The real shift is going from a scarcity mindset to one of abundance.

Frugality can be useful. But if it becomes your identity, you may be unintentionally limiting your potential.

Wealthy people don’t fear money leaving — because they know how to make it return with friends.

And you can learn that too.

Takeaway: If you’re tired of obsessing over your budget but still feeling stuck, it may be time to change the question. Stop asking, "Where can I cut?" and start asking, "Where can I grow?"

In the next post, I’ll share how to actually grow your income — even if you’re already maxed out on time.

Until then, remember: the ceiling on your savings is fixed. But the floor beneath your income is yours to raise.

📚 Recommended Reading

1. The 10x Rule by Grant Cardone
Why settle for incremental growth when 10x is possible? This book challenges you to think bigger, take massive action, and break free from small goals that keep you financially stagnant.

2. The Million Dollar Weekend by Noah Kagan
A tactical, inspiring guide to launching a business or side hustle fast. Perfect for high earners looking to boost income without quitting their day job.

3. Rich Dad Poor Dad by Robert Kiyosaki
A foundational book for shifting from an employee mindset to an investor mindset. Reinforces why making more — and making your money work — beats cutting corners.

4. The Gap and the Gain by Dan Sullivan & Dr. Benjamin Hardy
This book reframes how you measure success. Instead of feeling behind, it helps you focus on how far you’ve come — and how to maintain a growth-focused mindset.

5. The 80/20 Principle by Richard Koch
Learn how to focus on the few things that create the most value. Great for high earners wanting to double down on high-leverage income activities and eliminate wasteful effort.