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When Being Frugal Isn’t Enough

Last Updated: October 11, 2020 BY Michelle Schroeder-Gardner - 42 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

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When Being Frugal Isn’t EnoughLiving well on less is a popular concept these days. And it makes sense why people try to live more frugally.

Being frugal means you need less; when you need less, you spend less.

When you reduce your expenses, you have more money left over in your own pocket. Getting frugal is the easiest way to free up your income to save for a house, pay off debt, or invest in your retirement.

When you do begin to cut expenses, you’re taking advantage of the first and easiest way to build wealth. If what you spend is less than what you earn, you will have a surplus.

The simplicity of this equation may help to explain why there is so much great information out there on how to be frugal, how to save money on this, that, and the other, and how to pinch pennies without driving yourself (or your family) crazy. All you have to do is reduce your spending, and just like that, you’ve increased your wealth!

But if you’ve started out attempting to maximize your wealth by creating a surplus in your budget, you’ll get to a point where there are no more expenses to cut.

You’ll become such an amazing budgeter that the only things you spend money on are things that are truly important and meaningful to you. Being frugal and mindful about how much money you spend won’t be enough to create the kind of significant wealth that allows for financial independence. So what’s a smart, sensible, and frugal individual to do when you’ve squeezed every last “extra” dollar from your budget?

At this point, it’s time to focus on increasing your income.

This can seem challenging, but don’t worry. You simply need to think about the opportunities that may already be at your fingertips and how you can create money-making situations from them.

 

Earn Yourself a Raise.

If you currently have a job, this may be the first place to look to get an income boost. Ask to take on new tasks, an additional role, or more responsibility at work. When it comes time for annual reviews, this hard work may just result in a bigger paycheck.

If your company doesn’t have annual reviews, you’ll still benefit from taking on new things and showing some drive and initiative; when you go to superiors to ask for a raise, you’ll be able to show them exactly why you deserve it.

 

Pick Up a Side Gig.

A side gig, or hustle, is a bit of work you pick up and take on in your time off from your full-time day job. The best way to determine where to start in finding and aquiring a side gig is to analyze your skill set. Are you a talented writer?

Start a blog, do some freelance writing, or produce content for websites. Does your day job provide you with unique knowledge, or do you know of something like a second language that you readily understand and could pass on to others? Teach a class or tutor students and share that knowledge. Do you enjoy DIY projects or getting crafty and have an eye for diamonds in the rough?

Try scouring thift shops or yard sales for furniture that has the potential to be “flipped” – refurbish pieces and sell them yourself at a profit. Love animals and have busy, pet-owning neighbors? Offer to pet sit or start dog walking.

 

Monetize Your Hobbies.

Many people produce brilliant products or works of art as a result of an activity they enjoy, like photography or pottery, as a hobby. And there are plenty of people who appreciate niche items and artwork and would be willing to pay for what you create.

Lots of people also enjoy learning new things just for fun, like app development, and even this can be turned into a money-making endeavor if what you learn translates into a product or service. If you already do something that you love, consider if there is a market for what you make.

 

Rent Out a Room.

If you have extra space in your home, put it to use! Rent out a spare bedroom to a friend, family member, or aquantaince. If you don’t have room to rent, consider if your car could make a little money for you. If you’re often on the road, some companies will pay you to have your car wrapped with their company name and logo.

Reach out to local companies to see if they would be interested in paying you a small fee to use your car for additional advertising. It could be easy marketing for the company, and an easy way for you to make some more cash.

 

Declutter and Profit.

If you don’t have enough space in your home, it might be time to start going through all your possessions and determining what can be thrown out, what can be given away or repurposed, and what can be sold. Old furniture, appliances, clothes, collectables – these are all items that can be sold on sites like Ebay or Craigslist. You’ll not only clear out a bunch of stuff you don’t want, need, or use anymore, but you’ll also make some cash to add to your monthly income.

When you find there are just no more expenses to cut out of your budget, don’t despair. There’s still money to be found to add to your monthly surplus: you simply have to take the initiative to go after it and make it yours!

What would you need to do to if you needed to find an extra $500 in your budget?

 

About the Author: When Kali isn’t working her 9-to-5 office job, expanding on her experience as a living Dilbert cartoon, she is blogging about common-sense financial advice at Common Sense Millennial. She’s passionate about helping fellow millennials figure out how to make the most of their money and how to live well on less, and is currently working on turning the ultimate dream of self-employment into reality.

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42 Comments
Filed Under: Budget, Extra Income Tagged With: Budget, Extra Money, Frugal

About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. FI Pilgrim says

    November 15, 2013 at 5:39 am

    Whenever my wife and I feel squeezed for extra funds we turn to eBay. There’s ALWAYS something we need to get rid of, even though we don’t think we buy that much stuff. It’s a great way to earn a little extra dough!

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 8:06 am

      Great idea! And if you can’t find some stuff to sell, you friends or family may have something – you could offer to sell it for them and split the profit. I have a coworker who does this for her mom and it’s beneficial to them both. Her mom doesn’t have to deal with listing items and selling (she’s not very computer savvy), and she makes a little profit for her work.

      Reply
  2. DC @ Young Adult Money says

    November 15, 2013 at 6:26 am

    Excellent write-up, Kali! I do most of these things. My wife and I bought a house last year with the intention of renting out half the basement, which we do. Additionally I work on my blog pretty much nonstop and also try to do my best at work and create value so that I can get paid more.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 8:15 am

      Thanks DC! Creating rental income from your basement is a MUCH better use of space than most people put it to – in my experience basements often turn into giant stuff-collectors. Glad you’re making some extra cash that way! And I need to make a plan to monetize my own site.. it’s definitely something I’m thinking about for the future, but I don’t think I’m quite at the point where I could make money just yet. One day!

      Reply
  3. Laurie @thefrugalfarmer says

    November 15, 2013 at 7:36 am

    This is the situation we’re in right now, Kali. My favorite thing about increasing your income is that there are no limits on it! You can always find a way to make another buck, thereby speeding up your road to debt free, or to financial independence, or wherever you’re headed. 🙂

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:22 pm

      So true, Laurie! There really is a practical limit on how much you can save in most situations. How much you can earn, though, is much more flexible – your imagination really is the limit here!

      Reply
  4. Kelsie says

    November 15, 2013 at 7:48 am

    Great post! We squeezed our budget as tight as it will go, so I picked up one freelance writing gig. But, I don’t make much from it–maybe it’s time it look for some new opportunities.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 8:16 am

      Thanks Kelsie! We were in the same position a few months ago. Our budget was as stripped down as it could really get without flat-out depriving ourselves, so I looked into what I could do about making more. I do freelance writing, too, and I love it! Definitely look for more opportunities with writing if you enjoy doing it 🙂

      Reply
  5. John S @ Frugal Rules says

    November 15, 2013 at 8:04 am

    Good post Kali! I agree that being frugal will only take you so far. That said, if you can be frugal and bring in more money then even better. 🙂 If we needed to find $500, then we’d likely sell some stuff on CL as we do that several times a year. We run a pretty bare bones budget as it is.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:24 pm

      Couldn’t agree more – making a little more AND being frugal is a seriously awesome financial combination!

      Reply
  6. MonicaOnMoney says

    November 15, 2013 at 8:15 am

    This post is great timing for me because I recently started looking for way to increase my income. Blogging and teaching classes are two side incomes that I’m currenly using but I’m always looking for more creative ways too.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:25 pm

      I hope this post helps you brainstorm some new ideas, then! Congrats on already establishing some extra income through blogging and teaching.

      Reply
  7. Alexa says

    November 15, 2013 at 8:22 am

    When I need more money I try to look for my freelance writing jobs as well. There’s pretty much nothing I can do to get my budget any lower so the option is always work more and try harder.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:26 pm

      I’m right there with you, Alexa. Our budget is pretty darn tight as it is; we’ve squeezed just about every penny we can out of it! I’m attempting to make a little side income via freelancing. It’s been slow to start but I’ve finally picked up a small job or two. Hoping I can do as you said – work more, try harder!

      Reply
  8. Jason B says

    November 15, 2013 at 8:55 am

    I agree that you have to increase your income. I have cut expenses every way imaginable. That is simply not enough. I’m on the pt job search right now.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:27 pm

      That’s great that you’ve trimmed your expenses – and good luck with the job search! Hope you find a great one soon 🙂

      Reply
  9. Dear Debt says

    November 15, 2013 at 9:58 am

    I’ve had a bit of lifestyle inflation since getting my job, but before I had zero expenses to cut. No car, no insurance, no pets, a shared studio apartment…my only option was to make more money. And for now it still is, though I could cut out going out to eat altogether 🙂 Great article.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:29 pm

      Thank you! Sounds like you keep a very minimal budget, which is great. You could cut going out to eat entirely, but don’t deprive yourself! Frugal is good, but we definitely have to toe a fine line between saving and feeling like we’re missing out.

      Reply
  10. Stefanie @ The Broke and Beautiful Life says

    November 15, 2013 at 10:19 am

    I’m at the point where I don’t have much more “fat” I can trim from the budget. It’s all about earning more income at this point. Freelance writing is starting to pick up and help me get there.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:30 pm

      Congrats on your freelancing providing a little extra income! I’m trying to work on the same thing myself 🙂 It’s hard work, but so worth it to have a bit more cash coming in.

      Reply
  11. Rika | Cubicle Throwdown says

    November 15, 2013 at 10:44 am

    This is a great list – lots of ideas for me to take a look at! I live on a Caribbean island where I make ‘island’ wages (ie. really, really low) but pay ‘tourist’ prices (ie. really, really high) for things like rent, food, utilities, etc. Right now I’m saving money by housesitting at the resort I work at! It’s a win-win for both me and the homeowner.

    Reply
    • Kali @ CommonSenseMillennial says

      November 15, 2013 at 12:32 pm

      I’m so excited to see a comment from you, Rika – I just spent about 30 minutes last night discovering and reading your blog!! That’s great that you’ve been able to make housesitting work for you to cut down on expenses. I want to try that myself one day 🙂 Thanks again for your comment!

      Reply
  12. Kali @ CommonSenseMillennial says

    November 15, 2013 at 12:20 pm

    Great point, Kelly – growing income can really be fun, especially when you start seeing that extra cash come in!

    Reply
  13. Kali @ CommonSenseMillennial says

    November 15, 2013 at 12:23 pm

    Thanks, Catherine! We were in the same boat – I spent a few months feeling stressed and confused over our budget, because I had trimmed it back so much and I felt like we STILL weren’t able to save enough. When I realized I could solve this problem with a little hustle, it was like a light bulb moment!

    Reply
  14. Andrew@LivingRichCheaply says

    November 15, 2013 at 1:35 pm

    Great list. I’ve been thinking about this lately as well. I’m pretty frugal and there isn’t much fat to cut out of my budget so the only way to have more money is to make more of it. I work in government so raises are basically based on seniority. I’ll have to look into side gigs and monetizing my blog or something.

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:39 pm

      Thanks, Andrew! I’m the same way as you – very frugal, not much to cut out of my budget, so increasing income was the next step for me, too. Good luck with finding a lucrative side hustle, or monetizing your site! That’s something I’d like to do in the future, as well.

      Reply
  15. Dee @ Color Me Frugal says

    November 15, 2013 at 2:13 pm

    Great post! We use Ebay, Craigslist, and Amazon to sell “stuff,” depending on what it is. You’re so right, when the budget is so tight it squeaks sometimes the best option is to increase income.

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:36 pm

      Thanks, Dee! That’s awesome that you guys have been able to make those sites work for you!

      Reply
  16. Emily @ Urban Departures says

    November 15, 2013 at 3:31 pm

    This is a great list. I am at a point where I don’t WANT to cut my budget anymore and looking to increase my income to achieve some of my financial goals. I’ve started off with selling things. Some extra income AND less declutter- two birds with one stone!

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:40 pm

      Nice! Less clutter and more money is a hard combination to beat 🙂

      Reply
  17. Stu @ Poor Student says

    November 15, 2013 at 7:21 pm

    I do a lot of these things, like have a room mate (not the same as renting a room but still) and work a side gig, because I don’t really think being frugal is every really enough

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:41 pm

      Couldn’t agree more, Stu. Frugal is a great first step – but increasing your income is important, too!

      Reply
  18. Rebecca says

    November 16, 2013 at 7:26 am

    Great topic and discussion! My budget is tighter since I’m paying extra eveyr month on my loans, but I’m also finding ways to increase my income. I’ve been selling stuff to some success and freelancing as well. I’ve always been frugal, but sometimes you need an extra boost in your income.

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:43 pm

      That’s great you’ve been able to make some extra cash and had success with freelancing!

      Reply
  19. Cristin @ Eve of Reduction says

    November 16, 2013 at 10:29 am

    So true! I’ve made money garbage picking furniture, fixing it up and selling it at local consignment shops. Bigger ticket items like furniture can net a decent profit – and to your point, it’s fun!

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:43 pm

      Awesome! I’ve been wanting to try something like that myself 🙂 Great to hear that you’ve been doing it successfully!

      Reply
  20. Joe @ Budget Breakaway says

    November 16, 2013 at 1:13 pm

    Great post Kali! Increasing your income is great fun once you’ve decided on what you want to do (especially if you’re a certified workaholic!). I’ve already negotiated my second raise this year before my review; I think the trick is to agree on specific goals with your employer that will really benefit your company, if you can achieve them they often have no choice but to bump you up!

    Reply
    • Kali @ CommonSenseMillennial says

      November 16, 2013 at 5:45 pm

      Thanks Joe! Congratulations on your raise 🙂 I agree, once you figure out how you can increase your income, it really does become fun – doing things on the side somehow feels less like work than a normal 9 to 5 in my experience!

      Reply
  21. The First Million is the Hardest says

    November 17, 2013 at 5:03 pm

    I totally agree. Frugality only goes so far, making more money through any number of ways should be just as big of a focus in order to improve your financial life.

    Reply
    • Kali @ CommonSenseMillennial says

      November 18, 2013 at 7:30 am

      Exactly! It took me a little while to realize this, but as soon as I did I went to work on making more 🙂 I think if you can balance being frugal AND increasing income, you’re well on your way to financial success.

      Reply
  22. Little Miss Money says

    November 18, 2013 at 1:01 pm

    I’m at the point where I can’t go any more frugal. I cut in my expenses like a mad woman. Now I focus mainly on increasing my income: selling on Ebay, but also looking for continuous income. I just landed a freelance writing gig, and will continue to explore that field! I try to set myself (realistic) goals for that growth. It keeps me focussed and driven!

    Reply
  23. Jonathan | True Financial Planning says

    December 5, 2013 at 6:30 am

    Michelle, you raise some really good points. I often argue that cutting expenses is easier than increasing income. However, I do understand that there comes a point where you can’t cut any more out of your budget. In these cases it is a great idea to look for additional sources of income. I have personally “decluttered and profited” and “rented out a room” for additional income. Both of these actions helped me raise money and accomplish my personal finance goals. Great Post!

    Reply

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My name is Michelle and I'm the author/owner of Making Sense of Cents. Learning how to save money and make more money changed my life. It allowed me to pay off $40,000 in student loans, start my own business, and I now travel full-time.

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