Cutting your spending rate is more effective than increasing income by the same amount Did you realise that decreasing spending is much more effective than increasing income by the same amount? It is obvious really, but something that many people forget and that is to spend money you have to earn a much higher amount to replace it. Example, you spend $1000. To get $1000 you have to earn it and earnings are taxed. On a 37% tax rate, you would have to earn $1,587 to be left with $1,000. If you are on the top tax rate of 47% that would be $1,887 needed to be earned to generate $1,000 after tax. Add in the Medicare levy and it gets worse - $1,961. So reducing your expenses would be almost as good as earning twice as much money.