Most often, when we think of earning, we immediately think of money coming into our pockets. However, did you know that we can also earn by doing it the other way round?

Let us consider earning as NOT spending instead; or by minimizing the instances when money goes of our pockets. This is commonly referred to as “saving” but for our purpose, we can call it “earning” — – the ability to accumulate money inside our pockets.

Here are some practical methods on how we can “earn” this way:

Spend less than you earn. This simple advice may be a no brainer but many find this difficult to practice this in their day-to-day lives. Hence, they remain perpetually in debt; while others hardly exist till their next paychecks.

Stay out of debt. If a big chunk of your monthly income goes to only to the payment of your debt, try to re-negotiate the payment terms with your debtors. Most of them will settle to lower installments for an extended period of time, while keeping the interest rate as before. This will be a better option for them than the possibility of not being paid at all. They should realize that money not readily available to them can somehow be considered as lost revenue on their part.

Save before you spend. Fix a certain percentage of your income for your saving and give this your PRIORITY over your expenses. Most people spend first and keep what is left as saving. It should be the other way round—set aside first what you plan to save, and budget whatever is left for your expenses. This way, you will be forced to save and learn how to spend wisely what is left to you.

Buy in cash. Ever since banks introduced the cashless way of spending and replaced it with the plastic “legal tenders”, many have literally become cashless. Credit cards are among the biggest milking cows of financial institutions worldwide. By promoting the “buy-now, pay-later” concept to consumers, bankers have lured thousands to spend more than they earn and pay legs and limbs for the convenience. Many consumers are aware of the big interest slapped on them by using credit cards but the temptation to buying without cash and getting the goods immediately is too great a temptation to resist.

Choose your bank wisely. Not all banks are created equal. Compare which ones pay bigger interest for the money you entrust to them, which ones charge less for their services, and which among them collect lower fees on loans. Adding up these differences can sum up to a considerable savings for you.

Keep a monthly budget for your expenses. Although some regular household expenses cannot be avoided such as house rentals and utility charges (electric bills, water consumptions, and cooking gas), you can cut down on miscellaneous spending like entertainment and conveniences. You can go to the movies less often (you can stay home and rent movies once in a while. Also, many blockbuster films are available free over the cables). As regards cable subscription, instead of the premium type, choose expensive options with fewer stations since many are in foreign languages and news/sports reports are just duplications of other similar stations. Avoid eat-outs except on very special occasions (eating home-cooked food can be much cheaper and healthier, too); etc.

To save on your phone bills, consider using pay-as-you-go phone instead of the unlimited text feature especially if you are not using your mobile phone that much.

Look into your daily routines that add to your expenses. Consider joining in a carpool arrangement in your neighborhood. Instead of dropping by at your favorite coffee shop regularly for snack, why not prepare a brown bag of sandwich and a flask of home-brewed coffee? Replace some of your light bulbs with CFLs and LEDs. Set your refrigerator thermostat to low and avoid over-stuffing it to full capacity.

Outsource tasks. Saving is not limited to your personal or domestic life. It also applies to your business. A great way to save is to lower your overhead expenses by considering outsourcing some of your tasks at less cost and more efficiency. Many outsourcing outfits like Mr. Outsource can help you meet your requirements for manpower more effectively and at lesser cost.

There are a 101 ways to cut on your expenses and still manage to enjoy the conveniences of day-to- day life. Spend less than you earn will also provide you the invaluable luxury of having peace of mind for being debt-free.

Remember: money saved is money earned!