Is There a Link Between Debt and Wanting to Earn More?
Some of the links in this post are from our sponsors. Read our disclosure to see how we make money.
I’ve been doing some soul searching, trying to figure out why I’m a bit of a workaholic. I’ve always had a strong work ethic, and I enjoy being a good employee, but there was something more to it.
Ever since I became self-employed, I’ve been trying to earn more each month. I started from $0 and reached my highest earning point just last month.
No surprise – I realized I have a slight addiction to earning more. When the earning power is in your hands, it’s hard to scale back. The most I ever got paid at a day job was $14/hr. However, I also wasn’t working over 40 hours a week, and I’ve definitely surpassed that now.
Why is earning more so important to me? Because I’m sick of my student loan debt. Every month I earn more means making more of a dent in my balance. I know I’m not alone, either. The inspiration behind paying off my student loans early came from other bloggers who paid their loans off in three years or less (and they owed more than I did).
This has led me to wonder – is there a strong link between being in debt and wanting to earning more? Let’s explore.
Debt is a Strong Motivator to earn more
Back when I was receiving a bi-weekly paycheck of around $800, I did everything I could to work overtime so I could put more money toward my student loans.
Working a little extra each week never bothered me. It was worth it to see my balance drop faster.
However, when I left my job and switched to self-employment, I had to start from scratch. (I relocated due to my fiance getting a promotion.) I knew building up my business would be rough, even with savings. As a result, I made little to no progress on my student loans for several months.
When I started making what I had been at my last job, I ramped up my efforts. When I made double that amount, I wanted more.
Of course, killing yourself by working more just to pay off debt isn’t always sustainable. Some would argue it’s not worth it, while some would argue it’s necessary.
“Debt Is An Emergency”
There are some financial gurus and bloggers out there who state debt should be treated like an emergency. That means prioritizing it over everything else, including saving.
While some people side hustle to increase the amount of money they can save, I think debt can be a stronger motivator to earn more. Psychologically, it’s a bigger deal than saving because it’s costing you more. You know interest is accruing every day, and it’s also costing you freedom because you owe an institution. Your paycheck doesn’t entirely belong to you.
There’s more urgency when you want to pay off debt, and that can lead to things like side hustling, working overtime, cutting back, and doing whatever else it takes to get more money going toward your monthly payments.
Where Side Hustling Comes Into Play
The thought of working for myself had never crossed my mind before I started blogging. I had never heard the term “side hustle” used before then, either. Once I started reading finance blogs focused on paying off debt, I realized one thing: lots of people were working over 40 hours a week doing something in addition to their day job so they could pay off their debt quicker.
Duh. I had been stuck in the mindset of “cut back on everything!” because I figured my earning potential would never amount to much. That was a mistake.
Now I can safely say I see why some people elect to take this route. Once you’ve cut back on everything you possibly can, you need to focus on the other side of the equation. Figuring out where you can spend less and save more is addicting for some people, and earning more is addicting for others.
It’s clear that paying off debt can become a singular focus for many people. I know it has been for me. Once I finished funding a decent sized emergency fund, I realized getting rid of my debt was the only financial goal that really mattered to me. (Don’t worry- I realized retirement needs to be a part of my plan and have since been contributing to that monthly.)
For those who aren’t happy with their debt situation and are actively trying to get out of it as fast as they can, earning more is one of the most effective ways to do it.
Is Earning More Worth It?
I think a case can be made for there being a link between being in debt and wanting to earn more, but does there have to be? Of course not. As with most things in personal finance, there’s no 100 percent right or wrong answer.
While I don’t like being in debt, I know I haven’t gone to the extreme lengths others have to pay off their loans. There are people working 90+ hours a week at two or more jobs, and that’s not exactly something I’m willing to do.
Everyone has their own limits, and it’s important to know yours, especially when it’s so easy to get carried away focusing on one goal.
Debt is a very emotional thing, and it can be the driving force behind a lot of our financial decisions. However, after working so much to earn more, I’m not sure it’s truly worth it. I would love to be debt free sooner, but sacrificing my mental health at the expense of working so many hours and tiring myself out in the process hasn’t been fun (or healthy).
Yes, it might be temporary, but I’ve been keeping up this pace with work for close to a year and am slowly losing steam. I admire anyone who can do it, but just because there are people out there paying off debt at a rapid rate doesn’t mean you need to be one of them.
It’s important to have a life worth living, even when you’re in debt. There are plenty of free things to enjoy, and you shouldn’t feel pressured to earn more at all times to increase how much you’re able to put toward your debt. Everyone should travel at their own pace instead. It’s okay if you don’t make as much progress one month – take a long view of your journey and I’m sure you’ll be proud of what you’ve been able to accomplish.
Do you think there’s a link between debt and wanting to earn more money? Have you experienced this? Were you able to sustain it? Do you think hurrying to pay off debt is worth the sacrifice?
Latest posts by Erin M (see all)
- A Budget Template for New Grads: 10 Steps to Master Your Money - February 15, 2019
- 8 Questions to Ask Before Paying Off Debt - July 17, 2017
- Why You Shouldn’t Let Debt Hold You Back - March 31, 2016