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Saving Power vs Earning Power

Posted in Malaysia Personal Finance |

There is an interesting discussion over at Free Money Finance on the issue of saving and earning…

Which is more important to financial success: saving money (spending less than you earn through cost cutting) or making your income as high as possible (earning more money)?

Earning power can be upgraded by working harder and smarter and longer, mainly a physical approach.

Saving power, on the other hand, requires one to be disciplined and determined, a more will-power challenging approach.

As for me, I would opt for living below my means while working my way for higher income (sky’s the limit) and constantly upgrading my living standards. Well, as long as I do not spend more than I earn, and maintain the habit of allocating part of the income to an “untouchable” saving/investment account, I do not see the reason why you should not upgrade your living standard when you are capable of doing so.
What say you?





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  • http://games.fabiolee.com Fabio

    For me, I think “Earning power” will get more money then “Saving power”, however, I am the second type person :P

  • http://www.meshio.com yowchuan

    Yeah, you definitely earn more money if you have a strong “Earning Power”. Earning more money is not necessarily a good thing for those who are has got leaks in their pocket, where the more money you pour in, the more it will leak. Well, this is still better than owing credit card loan, where you are not just spending your “current” money, but also your “future” unearned income…

    It’s good to be the second type of person (saving POWER oriented), since I believe training yourself not to spend when you have abundance and save up for rainy days are more important than having a high paying job!