According to financial expert Purushottam Bedekar, QPFP®️, both cost-cutting and earning additional income serve different purposes in financial management. As reported by Mint, cutting expenses protects existing income while side hustles add new revenue streams. The combination of these approaches can improve finances without making daily life unnecessarily difficult for households facing rising living costs.
Financial advisors recommend starting with expense management by identifying wasteful spending patterns. According to the report, frequent food deliveries, unused subscriptions and impulse purchases can leave less money available for important needs. Key areas to review include commuting costs, avoidable interest payments, investment portfolios, insurance premiums, and refinancing expensive debt. The advantage of this approach is that saving ₹5,000 monthly leaves that amount available for emergency funds, debt repayment, or financial goals without requiring extra working hours.
Side hustles offer alternative income sources through existing skills and interests. As reported by Mint, teaching, writing, photography, freelancing and online services are viable options, with specialized experience allowing consulting or mentoring services. However, these activities require time, energy, and potential upfront investments before generating returns. Financial experts recommend considering whether extra work could affect main employment or reduce family time, while also checking tax responsibilities and employment restrictions. Recent developments show that quick commerce delivery, weekend ride-hailing, and remote AI data annotation are emerging as popular options, with platforms offering ₹10,000 to ₹18,000 monthly for remote work and ₹12,000 to ₹16,000 monthly for delivery services.
According to the financial guidance, identifying wasteful spending before developing additional income provides a clearer financial picture. The report uses an example of someone earning ₹1 lakh monthly who could cut unnecessary expenses by ₹10,000 and earn an additional ₹15,000 through extra work, resulting in a combined improvement of ₹25,000. Financial experts emphasize that both approaches address different aspects of the same financial problem, with the larger goal being to connect income, expenses, savings and investments with life goals. Recent analysis shows that earning an extra ₹15,000 per month can compound into significant wealth over time, with ₹1,80,000 in surplus annual income potentially growing to over ₹35 lakh in 10 years when invested in mutual funds generating 12% annualized returns.
