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Eric Siu explains why people waste energy on tiny savings like skipping coffee when they should focus on bigger moves: asking for raises and growing income. Small cuts don't move the needle. Yearly raises do.
Eric Siu explains why people waste energy on tiny savings like skipping coffee when they should focus on bigger moves: asking for raises and growing income. Small cuts don't move the needle. Yearly raises do.
Vivian, what do people get wrong with their money? I think a lot of us really focus on the scrimping and the saving. And so people are like, I'm not buying that avocado toast, I'm not buying that Starbucks, I'm not doing anything that brings me joy. Think about how hard it is to cut $10,000 worth of expenses out of your life. Like, that's hard. You're giving up a lot of things you really enjoy. How easy is it to ask for a $10,000 raise? That is absolutely heard of. Like, heard of, as in happens all the time, happens to so many people. A $10,000 raise is really not that strange, and you can get one just by being responsible, making sure you come to the table with like quantifiable facts and like a good excuse for your boss of why you deserve one. So it's a lot easier to make more money than it is to cut out all of the things that bring you joy. So my advice is focus less on the coupon clipping and the little tiny things, focus on the big stuff. Because if you're not asking for a raise every single year, it doesn't matter if you're trying to scrimp and save, like you're still not going to get ahead.
