Increasing your income and decreasing your expenses—these two elements are the holy grail of financial freedom. Yet this combination often takes a backseat in the world of personal finance discussions . The mantra "save more, spend less” often gets the spotlight. And let’s admit it: focusing on that alone can make the financial journey feel miserable.

We know we made this podcast about getting rich slow. But more money flowing in and fewer dollars flowing out can put you on the fast lane to financial independence. And who better to guide us through this conversation than the incredible Patti Lupari from Patti on the Money?

Patti is an advocate of financial literacy, parenthood, and mindful wealth. Her smart money moves have been all over the news — like paying her $150,000 student debt in six years . She’s also been featured for saving about $13,000 a year in childcare costs when her family moved states in Australia . Patti is also a wealth of knowledge about the gender gap in superannuation savings .

We are thrilled to have Patti Lupari as our guest on this latest episode of the Get Rich Slow Club podcast. We also can't wait to give you a sneak peek below into the questions we ask her.

How did Patti increase her income?

We start with a chat on how to increase your income because, honestly, that's not often talked about. Most conversations focus on how to cut expenses and start investing.

Patti, being the money guru she is, shared some practical tips she used to boost her income. If you’re looking to ramp up those savings and grow your portfolio faster, this part of the episode will be right up your alley.

Let's briefly explore the subject here.

One wise move that Patti did to increase her bank balance is upskilling. You heard that right—adding new skills to your arsenal can be one of the best investments your money can buy. Expanding your skill set enhances your value, which opens doors to higher-paying opportunities.

Upskilling doesn't always have to mean picking up a costly certification. Thanks to the wonders of the internet, there's an abundance of affordable or even free resources at your fingertips. The best part? You can tailor your learning to align with your interests and career aspirations.

The maths is simple: more money coming in means more money to divide towards building your wealth. Suddenly, saving becomes that little bit easier. Contributing to your investment goals becomes much smoother. And we all know that a larger portfolio means more financial security and freedom down the line.

Patti Lupari’s investing strategy and how to build generational wealth

Why did Patti start investing in the first place? And what's Patti’s investing strategy? Patti's passion for investing is contagious. That’s part of the reason we want to know more about her journey.

We are eager to know all the details on superannuation and generational wealth. Patti shares some insights on how spousal contributions can help bridge the “super gender gap”. She also talked about why investing for her child is so important for her. She breaks down these simple but powerful concepts to help us understand why they matter and where to start.

Superannuation, or “super” , is basically the retirement savings plan of employed Australians. It's a mandatory system in Australia where a portion of your income gets put aside for your future self.

Super also happens to be a core part of most Australian investment portfolios. It’s designed to come with some tax benefits, so you can keep more money in your pocket.

“Generational wealth” is another intriguing concept that Patti explores with us in this episode. It refers to the building up of assets and wealth that lasts for generations to come. Think of it as setting the stage for your kids, grandkids, and beyond to have a solid head start in life.

So why is building generational wealth so important for Patti? As a daughter of immigrant parents in Australia, Patti struggled to keep up with living expenses and student debt. She survived on canned tuna and instant noodles for years just to pay off her debt in lightning speed (6.5 years, to be exact!). Fast forward to the present, and Patti is building generational wealth to ensure her daughter doesn't have to face the same hardships.

Saving $14,000 a year in childcare costs

The thing is, childcare costs can be a major financial burden for many Australian families. According to a recent report , 37% of non-working parents weren’t working because they couldn’t afford childcare. This leaves families with less money to cover their expenses, and potentially drains their savings.

So, Patti’s family made the bold decision to relocate across the country. But what's so remarkable about this move?

Well, it turns out that childcare costs can vary significantly between states and cities in Australia. According to the report, the average weekly cost of full-time childcare in 2018 hit a staggering $480. And if you opted for family day care, it would set you back around $400. That's a 2.8% increase from the previous year, while the inflation rate was only 1.8%.

By moving from Sydney to Queensland, Patti’s family will be saving $14,000 annually in early childhood education and care costs. Those savings can then be contributed to extra mortgage repayments per year. Sometimes thinking outside the box can lead to a less stressful family life.

Is your house an investment?

We’re shifting gears here to explore Patti's views on homeownership. Is a house truly an investment? We've had countless debates about this topic, and Episode 13 offers our personal take on this. This time, however, we are eager to hear Patti's fresh perspective.

Patti recently purchased a property with the intention of adding value to it. So how does she see her home? And how do renovations fit into her financial strategy? Patti gives a fascinating take that challenges conventional wisdom.

To provide some context, we peeked into Patti’s Instagram account to share her homeownership journey with you.

Patti and her partner found a house that was below market value and fitted their strict budget. They weren't fixated on size or grandeur. Instead, they focused on older properties that they could renovate quite quickly. They also negotiated an extra $15,000 off the selling price to account for the renovation costs.

But Patti didn't stop there. Patti and her partner took their frugal strategy to the next level with DIY renovations. They also bought second-hand materials and upcycled furniture from online marketplaces.

Their goal? The renovations, along with weekly mortgage overpayments, could potentially increase their property equity. As a result, they are expecting to own 50% of their home in just three years.

But that’s just part of the couple’s impressive game plan. The full episode takes you into the details of other financial moves that they did before moving into their new home.

The role of a financial independence goal in Patti Lupari’s investing strategy

While Patti is deep in her career goals, we can’t help but ask her about financial independence. Patti gives us a glimpse into what financial independence personally means to her. She also explains how that ties into her overall strategy.

In general, financial independence is having enough saved and invested to support your lifestyle. It's about reaching a point where work becomes optional. You also get the choice to pursue your passions or take a well-deserved break.

So, how do you achieve financial independence?

There's a popular movement called FIRE, which stands for Financial Independence, Retire Early . The key principles of FIRE include increasing savings rate, reducing expenses, and diversification . FIRE encourages high-income individuals to save as much as 50% or more of their paycheck. For those on a lower income, the aim is simply to spend less than you earn, and save the rest. Those savings could then be invested in income-generating assets such as dividend ETFs or properties.

In a nutshell, FIRE often involves living below your means to reach financial independence faster. But don't worry, it's not about sacrificing all the joys of life in the present. Rather, there’s a perfect balance to be found between frugality and enjoyment. It's about being intentional with your spending and focusing on what truly brings you happiness and fulfillment.

Tips on how to increase income and decrease expenses

To wrap up the episode, we ask Patti for words on boosting income, investing, and reducing expenses. You might find some of her advice helpful depending on your financial situation.

We’ve also got some tips of our own for increasing your income and reducing your expenses.

Negotiate your rate / pay raise

Remember, if you don't ask, you don't get. Research suggests that 84% of employees who negotiate get a fatter paycheck. Meanwhile, 71% of employees leave thousands on the table simply because they are afraid to ask. It never hurts to advocate for your worth if it means a comfortable lifestyle and bigger savings.

Create a niche and master it

Do you have skills that you can combine to create unique value for specific people? Invest your time and money in becoming the go-to person in that niche. This can open up doors to new high income streams you never even imagined.

Build your personal brand

In today's digital age, a strong personal brand can open doors to lucrative income streams. It can lead to new clients, partnerships, and higher-paying opportunities. Show off your expertise, passions, and skills through social media or your own website.

Practice minimalism

Take a step back and think about what really brings you joy and value. Clear out the clutter, both in your physical and digital spaces. Living with less can lead to a life of financial freedom and contentment.

Sell things you no longer use

Do you have a closet bursting with clothes you haven't worn since two years ago? Or maybe you have gadgets collecting dust that could easily find a new home? Instead of letting them take up space, sell them online or organise a garage sale. Not only will you declutter your space, but you'll also generate some extra cash.

Practice conscious spending

Before swiping that credit card, take a moment to pause and ask yourself: is it a necessary and urgent expense? Is it something that aligns with your goals and values? Prioritise instead spending on experiences and items that truly add value to your life.

Embrace DIY and take advantage of free stuff

Embracing a do-it-yourself attitude can save you a lot of money over time. Instead of going on coffee runs, you can invest in a coffee machine to make yourself a better brew at home. In Patti's case, she used Flybuy dollars to get free plants for the landscaping of her new home.

Take action this week

As always, we've got an actionable takeaway for you. It's time to consider which area you want to prioritise. Is it increasing income and decreasing expenses? Should you be saving or investing? Choose your focus and take those first steps towards a financially independent life.

Head down below and listen to the full episode to hear Patti's insights in her own words. Patti's responses might help answer common personal finance questions that you have. However, we advise doing your own research, and seeking professional advice if you’re in doubt.

Happy investing!

Tash & Ana