Preparing For Retirement: Should You Spend Less Or Earn More?

American Advisor Group (Image Credits: American Advisors Group via Flickr)

In order to make your dream of retiring early a reality, you generally have two options: to spend less or to earn more. If you are an avid reader of personal articles, it is no surprise that spending less is included in “Ways To Save For Retirement”. But, when you want to focus on maximizing your earning potential then, you will have to do several measures to earn more.



Spending less gives an a more instantaneous result compared to earning more due to its direct nature. It is easier to accomplish because of money management and budgeting techniques.


There is a limit to when you can spend less before you hit a boiling point. For instance, some people restrict their way of life to the point that it is extremely uncomfortable and unsatisfactory.


  • Lower your utility bills by unplugging cables, turning off the lights, and minimizing the air conditioner temperature.
  • Cancel your hand phone plans and switch to prepaid in order to regulate your telecom bills.
  • It is important to track where your money is going through the last month’s bank statements and receipts. Notice what you have spending too much on and reduce it.
  • Cut down your T.V. bill by canceling your cable subscription and opting for watching at lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – for free! But, viewing of premium content is on a subscription basis.
  • Lastly, if you are buying a new appliance, make sure that it is an energy efficient model. Smaller appliances not only help you save more on space but on bills also.



The ways you can earn are endless. Ultimately, it is based on your good financial choices, a ton of effort, and a sprinkle of luck. Additionally, here is no limitation in the amount you can possibly earn.


Making more money takes time and effort. You will need to find a better job or to work more hours in order get a start-up capital for your small business. The flow of profit after the initial business launch takes time too.


  • Increase your earnings by upgrading your skills. To upgrade your skills, you can enroll to workshops or courses. Consider going down to your community centre (CC) and find out the affordable courses they offer. Transform the awesome skills you learned into viable freelance businesses or part-time occupations.

Related Article: 4 Community Centres’ Workshops That Can Really Make You Money

  • Start your own small business such as an online clothing shop. Online business allows you to sell your product or service at the convenience of your own home and your own time.

Related Article: How And Why You Should Start An Online Business Now

  • Lastly, contemplate on proposing a salary increase or a leaving the company for a better company.


On your way to save for your retirement fund, frugality or spending less is the first step. Once you are financially stable, it makes more sense to seek for higher income.
You can earn millions of dollars but if you are spending irrationally, you can get into financial problems. And, even if you are cutting down your spending, you may not reach your goal if you do not earn a decent amount of money. So, the best way to reach your retirement goal is to have a combination of both options.


(Image Credits: 401(K) 2012 via Flickr)

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