Why it's a myth that if only you could earn more, all your problems would be solved....

"If only I could earn more money......". We have all thought that at one time or another, but let's stop to consider what this entails. For most of us earning more means working longer hours - doing overtime, or taking a second job - or taking on more responsibility. This usually means working more hours and increased stress. So there's a price to pay. However, what if you approached this problem from the opposite direction?

To get an extra pound in your pocket, you have to earn almost £1.50 and £1.70 if you are a higher rate taxpayer. This of course is due to the tax and national insurance we all have to pay.

However, if you can save a pound simply by not wasting it, you have an extra pound for nothing, no extra work, no stress, no effort, no more tax to pay, you're a pound richer. Furthermore, if you save that pound on something you do or pay regularly, you gain that extra pound regularly too!

This simple truth is at the heart of our Live on Less philosophy. It doesn't entail becoming a miser or tightwad, it doesn't mean going without things you need, it just involves living smarter. Making rational informed choices. Being able to see the difference between value and waste. Buying because you need something, and not buying because you've been sold on the illusion of the approval of other people, which is basically what a lot of advertising plays on.

But there's a lot more to this: Take the example of a couple with young kids, the husband has the main job, and the wife works all she can, but only earns the £5 or £6 per hour that so many jobs these days seem to pay. It could easily be the other way round of course, with the wife being the main breadwinner.

Anyway, the wife has to travel to work, so they need to run a second car. She usually works all day, and has little time to shop, or cook - so she often buys convenience foods or has takeaways when she's had a hard day. Also, she has to pay for childcare when she's working - this is very expensive. The laundry and ironing pile up at home, there are never enough hours in the day. She's permanently exhausted, her relationship with her husband suffers, and she wishes she could spend more time with her children - like her own mother used to - but also feels that she has to contribute to the family finances.

Maybe you recognise this person, maybe it's you, or someone you know. The tax and benefits system in the UK forces women with children out to work, and is probably the most anti-family in the whole developed world.

If this is you; stop, think, and do the sums. Look at the cost of that second car, and travel to work, childcare, expensive convenience foods (as opposed to home cooking using fresh ingredients). Also, include the cost of hiring in decorators and other "home helps" to do the work at home you've no time to do yourself. How much is the wife (or husband) really earning net, after tax and taking all of this into account?

You may well be surprised. You may well conclude that you'd be better off working part time, or giving up that job entirely. You could really profit from the time saved in the following ways:-

• Shop around and thus save even more on everything you buy.
• Learn new skills to increase your earning power when the time comes to return to full time work.
• Save even more money by doing all those jobs you currently pay someone else to do for you - like decorating or gardening - yourself.
• Start a part time business. Who knows, it could even become a ful time one.
• Take advantage of the benefits system and tax credits.

Live on Less contains many resources to help you in achieving the goals above. More reasons to subscribe today!