Side hustle vs cost-cutting: Should you earn more or curb your expenses? Start by checking…

Shah Rukh Khan’s mother advised him never to curb his expenses. Instead, he should earn more. While SRK has managed to carry it out exceptionally well, the choice is not that simple for commoners.

When expenses rise faster than income, managing the household budget becomes difficult. Higher living costs, changing family needs and unexpected commitments can gradually stretch your salary. Should you cut spending or find another way to earn?

According to Purushottam Bedekar, QPFP®️, Independent Director – P N Gadgil Jewellers Ltd, both approaches can help. But they serve different purposes. Cutting costs protects the money you already earn.

A side hustle adds income beyond your regular earnings. Combining them sensibly can improve your finances without making daily life unnecessarily difficult.

Cut expenses

Start by checking where your money goes. Frequent food deliveries, unused subscriptions and impulse purchases can leave less for important needs, says the author of Master Your CIBIL.

Reducing these expenses can free up money immediately. Review commuting costs and avoidable interest payments, too. Bedekar also suggests reviewing investments, renegotiating insurance premiums and refinancing expensive debt.

The advantage is simple: spending less does not require extra working hours. Saving ₹5,000 monthly leaves that amount available for other needs.

These savings can help you build an emergency fund or repay costly debt. You can also put the money towards your financial goals.

However, cutting costs has limits. Rent, food, medical needs and other essential expenses cannot keep shrinking indefinitely.

Removing every small pleasure can make budgeting tiring and affect your quality of life. The aim should be to remove waste, rather than making yourself uncomfortable with every purchase.

Side hustle

A side hustle offers another way forward. Instead of repeatedly reducing expenses, you look for ways to earn more. Your skills and interests can guide this choice.

Teaching, writing, photography, freelancing and online services are some possibilities. People with specialised experience could consider offering consulting or mentoring services. This allows them to use existing knowledge without exploring an entirely new career.

Additional income has greater room to grow than savings from repeated spending cuts. However, earning it takes time, energy and effort. Some activities also require an upfront investment before they start generating returns.

Consider whether extra work could affect your main job or reduce family time. Check tax responsibilities, employment restrictions and possible conflicts of interest before taking work.

So, which one to choose?

So, which approach should come first? Bedekar recommends identifying wasteful spending before developing another source of income. This gives you a clearer picture of your finances.

Then, consider extra work that suits your skills, interests and available time. The choice should fit your circumstances, rather than simply follow what others are doing.

His example shows how the two approaches work together. Someone earning ₹1 lakh monthly could cut unnecessary expenses by ₹10,000.

Another ₹15,000 from additional work would bring the combined improvement to ₹25,000. Spending control and extra earnings therefore address different parts of the same problem.

The larger goal is to connect income, expenses, savings and investments with your life goals. Saving on small purchases helps, but improving a useful skill can support future earnings.

Ask yourself both where you can reduce waste and how you can create more value. You need not choose between earning more and spending less. A sensible balance can protect today’s income while creating better opportunities for tomorrow.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Please consult a qualified financial adviser before making any investment decisions.