Raising Dough

The best financial advice I know is “live on less than you earn and save the difference.” But what if there’s no daylight between what you earn and what you spend?

Many of us confront this problem because of four scary expenses: housing, healthcare, student loans and child care. Take housing alone. By my calculations, it would take a six-figure income to buy a $435,300 home, which is the median cost of a U.S. home today according to the National Association of Realtors.* The median U.S. household comes up well short of this, with $78,171 in 2025.

With challenges like these, it’s time to add a new chapter to the financial planning textbook—how to make more money. What would you include in a “make money” playbook? I’ll pitch my ideas, but it honestly feels like I’m stating the obvious. You may have better ideas from your life. Please add them in comments—I look forward to reading them.

Here are my thoughts:

1. If you’re still in school, know what your college major pays before you—or your child—graduates. You can look up the average first-year earnings of many majors at specific colleges here. It’s a goldmine of nuggets like this: At Purdue, graduates in biology earn $33,500 a year, on average, versus $69,200 for mechanical engineers.
2. If you’re already in the workforce, continue your education by earning a professional designation or advanced degree. This makes you a trusted authority with your employer. Extra credit: Many employers, like mine, will pay the freight on a job-related degree.
3. Job hop for a big pay bump. I wrote about this once during the pandemic, when job seekers had the upper hand in salary negotiations. That may not be true now, except in specialty fields like AI. Back then, one commenter said that changing employers seemed disloyal. If you agree, seek out promotions with your current employer.
4. Teach what you know. Nearly half of all college faculty are adjuncts these days. The pay is only so-so in my experience, but it helps to organize your knowledge. Besides, you’ll be seen as a leader in your field.
5. The world of side hustles is enormous. I’ve done freelance work and found it slightly rewarding, but every dollar counted at that moment. I’ve made more by renting out an extra house that came with my farm property. If you go the side-hustle route, just try not to wear out your car delivering passengers or pizza.

I have a second category of suggestions related to cutting expenses. No, I don’t mean draining the fun out of life, say, by never eating out. These ideas won’t diminish your quality of life but might save you tons of money:

1. Unless you’re a gearhead, buy a used car and run it for many years. You may save tens of thousands on each car purchase without sacrificing mobility. When repairs get to be a hassle, buy another used car with the savings you’ve stacked away. You don’t have to own a clunker. I’ve been driving Volvos.
2. Pay your credit card in full every month. Use the card as much as you like, as long as you never carry a balance. My card pays me 2% cash back, but you may prefer airline miles.
3. Reframe the college decision by refusing to borrow more than one year of future pay in the student’s field. For example, a nursing student at the University of Connecticut wouldn’t borrow more than $69,400—the average pay nursing graduates receive. Can’t be done? Ask for more aid or try another school.
4. Stay organized and on top of your finances. I’ve paid a penalty for paying bills late or carrying unwanted subscriptions. Sigh. Your bank, your credit card, even your local parking authority would love to dun you with mindless charges. Try not to let them.

I hope this helps someone. Now, what are your ideas?

*I assumed a 20% down payment and a 7% mortgage rate and kept the monthly payments at 30% of total income. Those who spend a higher percentage of their income on housing are deemed “cost-burdened” by the U.S. Census Bureau, but many are stuck there.