Making Money

You Can Only Cut So Much. At Some Point, Focus on Income Growth.

📅 Last Updated: June 2026 ⏱ 5 min read ✦ Get Rich Slow By Michael Azzolina · CPA · MBA
Quick Answer

Cutting expenses has a hard floor: rent or mortgage, food, insurance, utilities, and the essentials of caring for the people who depend on you. Once you're near that floor, there's not much left to cut and diminishing returns set in fast. Income has no equivalent ceiling. A raise, a promotion, a better job, or a second income stream can keep growing long after the expense lever has run out of room.

Most personal finance content is about cutting expenses. That's not an accident. Cutting expenses is easy to write about, applies to almost everyone, and feels actionable. It also has a hard limit that income growth doesn't.

Expenses have a floor

You can trim a lot from a budget: subscriptions, eating out, a nicer car than you need. At some point you hit rent or a mortgage, food, insurance, utilities, and the essentials of caring for the people who depend on you. That floor is real, and once you're near it, there's not much left to cut. Diminishing returns set in fast.

I think of this as a scarcity versus abundance mindset. If the only lever you ever pull is how cheaply you can live, you hit a point where it stops making sense. A lot of your costs are fixed: you need to live somewhere near your job, food costs what it costs, you need a car, and buying the cheapest version of everything usually costs you more in the long run. There's only so much room on that side of the equation.

Income has no ceiling

There's no equivalent floor on the income side. A raise, a promotion, a better job, a second income stream, a business, none of these have a hard cap the way expenses have a hard floor. The lever keeps working long after the expense lever has run out of room. Getting better at your skill and commanding more in the marketplace is where the real room is, provided you have the discipline not to let the extra income just raise your lifestyle instead of opening up money to invest.

Unit economics applies to your own finances the same way it applies to a business. Every dollar has a cost and a return. Once the cost side is optimized, the return side is where the growth actually comes from.

When to make the switch

If your budget still has obvious waste: unused subscriptions, high-interest debt, spending that doesn't reflect what you actually value, cut it first. That's the highest-leverage move available and it's usually fast.

Once the budget is genuinely lean, the next unit of progress almost never comes from finding another $50 to trim. It comes from negotiating a raise, changing jobs, building a skill that's worth more in the market, or adding an income stream. That's a harder, slower lever to pull. It's also the one with no ceiling on it.

The takeaway

Cut the obvious waste first. It's fast and it's real. But don't mistake a lean budget for a finished plan. Expenses have a floor you'll eventually hit. Income doesn't. At some point, the higher-leverage move is growing what comes in, not shrinking what goes out.

Frequently Asked Questions

Should I focus on cutting expenses or growing income to build wealth?

Cut obvious waste first, like unused subscriptions and high-interest debt. That's the highest-leverage move and it's usually fast. But expenses have a floor: rent, food, insurance, utilities, and the essentials of caring for the people who depend on you. Once your budget is genuinely lean, the next unit of progress almost never comes from finding another $50 to trim.

Why doesn't cutting expenses work forever?

A lot of your costs are fixed. You need to live somewhere near your job, food costs what it costs, you need a car, and buying the cheapest version of everything usually costs more in the long run. There's only so much room on the expense side of the equation, and once you hit that floor, diminishing returns set in fast.

When should I switch my focus from cutting expenses to growing income?

Switch once your budget is genuinely lean and you're no longer finding real waste to cut. At that point, the higher-leverage move is negotiating a raise, changing jobs, building a skill that's worth more in the market, or adding an income stream. It's a harder, slower lever to pull, but it has no ceiling the way expenses have a floor.