Part 2 of the series looks at the motivation to increase your income.

Budgeting only gets you so far, after that you need to increase your income. Here is how I did it.

To quote Mel Gibson from Braveheart: "Frrreeeeeddddoommmmmmmm!!!!"

Playing games an investment? Maybe. Yes your kid might not be wasting thier life in front of the computer, they may be preparing for a great career.

After reading this post about a bad job I think back to my worst job.  Was it cleaning barns? No.  Was it assembling doors in a factory?  No.  Was it tarring roads?  No.  Was it mopping floors?  No.  I've done all those things and more but these jobs were not the worst jobs I've had.  There was something honest about them because of the labor involved and getting paid for what I did.  The worst job had to be with a huge bank with a large consumer finance division with a very profitable credit card division.  Think about those finance plans form places like Best Buy or Slumberland.  Then think about people getting into debt because they buy a lot of worthless junk then they get hurt or sick or get way too far over their heads in debt.  Then they get behind and then they go into collections.  That's where I came in.  I had to collect from these people. 

It sucked.

I heard the most awful stories in my life.  I felt dirty.  I hated it.  These people were like cornered animals.  Most you didn't feel sorry for because they were the victims of their own stupidity.  The ones with cancer or the ones whose husband/wife just died you felt pretty damn bad about and here you were calling them about a stupid credit card. 

However I credit this job with instilling in me the hatred of debt.  My goal is to be beholden to no other person and I am well on my way.  So thank you Big Bank for a life lesson I will never forget.

Theory:  I should increase my 401(k) contributions to the maximum to minimize taxable income and maximize retirement funds.

Supporting Facts:

1. TMND (The Millionaire Next Door) states that the wealthy realize less of their income as a percentage of their wealth compared to the non affluent.
2. 401(k) contributions are taken out before taxes thus lowering taxeable income.

Contra

1. Oppurtunity cost of your money being tied up until 59.5 years of age.  What else could I do with this money?
2. Unknown tax burden at age 59.5.  This would be during prime earning years so it's likey that income may be higher at that time.  Of course I would not need to take that money during that time.