[Reached the Limit] The Trap of "The Rich Are Good at Saving"
"Save, save, save."
"Point-earning is life."
"Bean sprout diet again today."
For those working hard at saving, don't you feel like you've pretty much done it all?
Switching to a budget smartphone.
Canceling unnecessary insurance.
Cleaning up subscriptions.
Up to this point, it's quite effective.
But honestly,
once you've finished this,
there is a limit to "saving alone."
Today,
I will talk about "The reason why prioritizing income growth over saving will change your life."
⇩Click here if you want to watch the 4-minute video⇩
1. Beyond saving
It was written in a chapter title of the classic book, "The Millionaire Next Door."
"Save, save, save"
Certainly, the rich are not spendthrifts.
They are good at saving.
But that's not all.
So, what should the average person do?
The answer is simple.
First,
what a beginner at saving should do first is,
without a doubt, reduce fixed costs.
This is for real.
Because,
it happens automatically every month and has an immediate effect.
For example,
・Budget smartphones
・Canceling unnecessary insurance
・Unused subscriptions.
・Overpriced communication costs.
・Electricity plans that haven't been reviewed.
These are things
you should review right away.
But you know,
it's dangerous to misunderstand this point.
Thinking that
"you can become wealthy just by saving."
From here on out,
the more you cut back,
the more miserable your life will become.
2. Saving and Waste
For example,
・Living on bean sprouts
・Enduring too much without air conditioning
・Reducing the number of baths you take
・Using water sparingly
This,
while it drains your mental energy,
has little effect.
It's a waste.
It's a world of 1,000 or 2,000 yen a month.
And it doesn't last.
Humans,
a life of nothing but endurance won't last long.
If you do this, you'll be scolded by Dio.
MUDA MUDA MUDA MUDA MUDA MUDA!
He'd say.
3. Try reviewing your fixed costs
Conversely,
fixed costs have a large impact.
This should be prioritized.
That is, your beloved "car".
Residual value credit.
Luxury minivan.
A new car for the sake of vanity.
I want to drive one too.
Driving the car you want to drive.
It feels good, doesn't it?
But this,
destroys your household budget every month.
50,000, 70,000, 100,000 a month.
And on top of that,
gasoline costs, taxes, insurance, and even vehicle inspections are added.
Here,
switch to a fuel-efficient used car.
Switch to a light car.
Reduce the number of cars in the first place.
Just by doing this,
it changes by hundreds of thousands of yen per year.
When it comes to saving,
it's more important to touch "large fixed costs"
than to make "small efforts".
4. Simple but surprising saving techniques
Also, something that is subtly effective is,
home insulation.
Old houses,
have abnormally high air conditioning costs.
Drafts.
Thin windows.
No insulation.
So,
・Insulation sheets
・Thick curtains
・Window treatments
Just by doing these,
your electricity bill will change significantly.
Also, family.
In separate rooms,
each with their own air conditioner.
This is surprisingly expensive.
Try to spend time in the same room as much as possible.
Just by doing this,
your electricity bill will go down,
and family conversation will increase.
5, The limits of "saving"
But.
Even if you do all this,
there is still a limit.
Why?
Because saving
has a "lower limit."
You can't make living expenses zero.
But,
there is no upper limit to income.
This is super important.
6, Let's think about the range of income
So ultimately,
what makes life easier is,
"Increase your range of income."
This is it.
For example,
・Start a side hustle.
・Learn a skill.
・Change jobs.
・Video editing.
・Content creation.
・Blogging.
・YouTube.
・Study for certifications.
It can be small at first.
5,000 yen a month.
10,000 yen a month.
But,
when your income sources increase, the sense of security in your life changes completely.
7. Let your money work for you too
What's even more powerful is
"letting your money work for you."
In other words, investing.
Index investing with the new NISA.
This is
not a way to get rich quick.
But,
10 or 20 years from now,
it will pay off later.
If you only save,
you're always sacrificing.
Your range of choices doesn't increase.
However,
Increasing income + investing
makes the future easier.
Your range of choices increases.
[ Conclusion ]
Reducing fixed costs is super important.
But that is not the goal.
What truly changes your life is
“taking action to increase your income.”
Defend with savings,
and attack by increasing income.
Both are important.
For those exhausted by just saving money,
next,
thinking about “how to increase your money?”
will change your life.
From having only savings, to
increasing your options so you don't have to save.
“Instead of a life of just cutting back, let's cultivate the ‘power to increase’”
⇩ I made an overseas version of this article ⇩
⇩ Related videos for this article are here ⇩
The Trap of Extreme Frugality Why Saving Money Alone Won’t Make You Rich
“Save money.” “Cut expenses.” “Stop buying coffee.”
Okay. But what happens after you already did all that?
Cheap phone plan. Canceled subscriptions. Cut unnecessary insurance.
Now what?
Because eventually… you hit the limit.
Today, let’s talk about why increasing your income changes your life more than endless frugality.
【1. THE LIMIT OF FRUGALITY】
There’s a famous money book called “The Millionaire Next Door.”
And yes. Rich people are usually careful with money.
They don’t waste everything they earn.
But here’s the problem.
A lot of normal people hear this and think:
“I just need to keep cutting more.”
That’s where things go wrong.
The first step SHOULD be cutting fixed expenses.
That part matters.
Because fixed expenses hit your wallet every single month.
Things like:
• expensive phone plans
• subscriptions you never use
• unnecessary insurance
• overpriced internet
• bad utility contracts
These are worth fixing immediately.
But after that?
Cutting more and more often makes life worse… not better.
【2. EXTREME FRUGALITY】
At some point, people start doing things like:
• surviving on instant noodles
• refusing to use air conditioning
• stressing over every drop of water
• feeling guilty buying anything
And honestly?
The mental damage is bigger than the money saved.
You save maybe 10 dollars. 20 dollars.
But your quality of life collapses.
Humans are not designed to live in permanent restriction.
At some point your brain just screams:
“MUDA MUDA MUDA!”
【3. THE BIG EXPENSES】
You know what actually destroys people financially?
Cars.
Luxury SUVs. Huge monthly car payments. Leasing cars to look successful.
I get it. Nice cars feel amazing.
But financially?
They can destroy your future.
500 dollars. 700 dollars. 1000 dollars every month.
Then add:
• gas
• insurance
• taxes
• repairs
Now your paycheck is gone.
Sometimes, switching to a cheaper used car changes your financial life more than a year of coupon hunting.
That’s the truth.
Big fixed costs matter more than tiny daily savings.
【4. SMALL THINGS THAT ACTUALLY HELP】
Some boring things DO help though.
Like improving home insulation.
Old homes leak money through bad windows and poor insulation.
Simple things like:
• thicker curtains
• window insulation
• reducing wasted electricity
can lower bills more than people think.
And another thing:
Families sitting in separate rooms, running separate air conditioners.
That gets expensive fast.
Sometimes being in the same room saves money… and improves relationships too.
【5. WHY FRUGALITY HAS A LIMIT】
Here’s the real issue.
Frugality has a floor.
You cannot reduce your expenses to zero.
But income?
Income has no ceiling.
That changes everything.
【6. INCOME CHANGES YOUR LIFE】
Eventually, the people who become financially comfortable usually do one thing:
They increase income streams.
That could mean:
• side hustles
• freelancing
• learning skills
• content creation
• YouTube
• editing videos
• blogging
• changing careers
It doesn’t need to start big.
Even an extra 100 dollars a month matters.
Because the moment you have multiple income streams…
life feels safer.
【7. MAKE MONEY WORK FOR YOU】
And then comes the next level:
Investing.
Not gambling. Not get-rich-quick nonsense.
Long-term investing.
Index funds. Retirement accounts. Building assets slowly.
This is not about becoming rich tomorrow.
It’s about making life easier later.
Frugality alone creates endless restriction.
But:
higher income + investing
creates freedom.
More choices. Less stress. More control over your future.
【ENDING】
Cutting fixed expenses matters.
But that is NOT the final goal.
The real goal is increasing your ability to earn.
Protect your money with smart spending.
Grow your future with higher income.
If you’re exhausted from endless budgeting…
maybe the next step isn’t cutting more.
Maybe it’s learning how to earn more.
Don’t build a life that only survives by cutting things away.
Build a life that grows.