At DollarsAndSense, we love challenging societal norms because we believe doing so can lead to meaningful improvements in our lives—especially when the right norms are questioned.
Today, we want to challenge young married couples to think differently about spending. Specifically, we encourage you to consider living on a single income, even if both partners are working.
We acknowledge this isn’t easy, especially for most Singaporean couples. After all, we are constantly surrounded by advertisements designed to convince us to spend our hard-earned money on things we might not actually need.
However, we believe there are compelling reasons to take on this challenge. Learning to live on one income can bring long-term financial stability, greater peace of mind, and opportunities to focus on what truly matters.
How Much Does The Average Household In Singapore Spend?
Let’s take a closer look at what this might mean for a young married couple in Singapore. Imagine a couple earning $3,000 each per month, for a combined household income of $6,000. After CPF contributions, they would take home about $4,800 monthly.
For simplicity, let’s assume their CPF contributions are sufficient to cover their monthly mortgage payments. This leaves us with $4,800 in cash to manage everything else.
To make this scenario more relatable, we’ve referenced data from SingStat to illustrate how typical Singaporean households allocate their expenses. Here’s how their income stacks up against real-life expenditure patterns:
This is undoubtedly a conservative estimate—perhaps even overly—since the data we’re referencing comes from the Average Household Expenditure Survey of 2017/2018, which is already seven years old. It’s safe to say that expenses have likely risen since then.
What we’re about to suggest may not resonate with everyone, and we fully acknowledge that many will disagree with the feasibility of spending so little on household expenses in a city as expensive as Singapore.
The table above illustrates that an average middle-income household in Singapore spends about $4,812 per month (median spending is $4,906). In comparison, lower-income households live on about $2,570 per month.
Our suggestion is this: even if you earn a middle-income salary, challenge yourself to live more like a lower-income family.
Yes, it will be tight. However, as lower-income families in Singapore have demonstrated, it is possible. And with this approach, you might unlock greater financial resilience and peace of mind.
Advantages Of Spending (Way Below) Your Means
Let’s be honest—spending less and drafting budgets aren’t exactly the most exciting activities. But here’s the thing: the advantages of doing so are crystal clear and potentially life-changing.
Not Being Beholden To A Job: By living on less, you’re not chained to your jobs. If one of you wants—or needs—to leave work, you can do so without major financial stress, as long as your spouse is still earning. This flexibility also means the wife can take time off for maternity leave comfortably, allowing the family to plan what’s best for their child without financial worries.
Smaller Emergency Fund: With lower monthly expenses, you don’t need a massive emergency fund to feel secure. This means even in the unfortunate event of job loss for one or both of you, your savings can stretch further and buy you time to bounce back.
Early Retirement: Spending less now means you can save and invest more. Over time, these savings compound, making early retirement a real possibility. Imagine the freedom of having more control over your time and life choices earlier than most.
Read Also: What Is Gross Monthly Household Income – And How Does It Affect You In Singapore?
Not Being Beholden To A Job
Does this sound familiar? You’re stuck in a job you hate, but you’re too drained and busy at the end of each day to look for something better. It’s a vicious cycle, and escaping it feels impossible.
What if we told you that spending less—specifically, living as though you’re a single-income family—could break that cycle? Imagine being able to leave your current job whenever you need to (as long as your partner is still working) and taking the time to find a more fulfilling, rewarding career without the stress of mounting bills or debt. Wouldn’t that kind of freedom be worth considering?
Too often, young working adults fall into the trap of overspending on lifestyle upgrades as soon as they start earning. Before they know it, they’re stuck in jobs they don’t love to sustain the lives they’ve built. But it doesn’t have to be this way. Spending less means taking back control of your life, your choices, and your future.
After all, aren’t the best things in life supposed to be free?
Smaller Emergency Fund
We have always believed that every family should have an emergency fund equivalent to at least six months’ worth of expenses. This safety net is essential for peace of mind, and achieving it comes down to two key factors.
The first factor is income. To save money, you need to earn it. Many people often say they can’t save because they don’t make enough money, and that’s a valid concern. For most of us, our income isn’t something we can easily or quickly change.
However, the second factor—expenses—is entirely within our control. Strangely enough, we rarely hear people say they can’t save because they spend too much. Yet, this is the one area where we have real power to make changes. Adjusting your spending habits can make all the difference when it comes to saving effectively.
This is why we advocate spending based on a single income. Not only does this approach reduce your financial stress, but it also significantly shortens the time it takes to build a robust emergency fund. For example, if a couple earns a combined take-home income of $4,800 but limits their monthly expenses to just $2,400, they’re saving $2,400 each month. With this level of discipline, they would need only six months to save up six months’ worth of expenses.
By spending just $1,200 more each month, the couple would take five times longer to accumulate the amount they need for their emergency fund. Why? Because every extra dollar spent doesn’t only reduce the amount available for savings—it also raises their monthly expenses. And when monthly expenses go up, the amount required for a six-month emergency fund also increases.
It’s a double impact: not only are you saving less, but you’re also inflating the size of your emergency fund target. For example, if a couple spends $2,400 per month, they would need $14,400 set aside for six months of expenses. But if they increase their spending to $3,600 per month, their emergency fund target jumps to $21,600. At the same time, their savings rate drops, meaning it will take significantly longer to reach that higher goal.
This highlights the compounding effect of spending less—not only does it help you save more each month, but it also keeps your emergency fund requirements manageable, allowing you to achieve financial security much faster. Every dollar saved truly counts.
Read Also: Working Adults Guide To Starting An Emergency Fund – And How Much You Should Have In It
Early Retirement
The less you spend, the more you save—and the more you save, the more you can invest. And the more you invest, the closer you are to achieving early retirement. It’s a virtuous cycle that rewards disciplined financial habits.
Imagine this: a 25-year-old couple invests $2,400 each month and earns an annual return of 6% on their investments. By the time they turn 50, their portfolio would be worth an impressive $1.66 million. Not bad at all for a middle-income family, right?
Now, let’s take it a step further. If their portfolio generates a 3% dividend yield annually, they would receive approximately $4,000 per month in passive income. That’s more money to spend in retirement than their monthly take-home pay while they were working!
This highlights the power of compounding and disciplined investing. By starting early and maintaining a consistent investment habit, even middle-income families can build a substantial nest egg and enjoy financial freedom well before the traditional retirement age. It’s proof that small, consistent steps today can lead to big rewards tomorrow.
Spend Less Today, For A More Secure, Comfortable Tomorrow
Living on just one person’s income may require some lifestyle adjustments today, but the long-term advantages make it a worthwhile trade-off. Sure, giving up the car, dining out at restaurants, or scaling back on two (or three) annual holidays might feel like significant sacrifices at first. But when you weigh these against the extra freedom and financial security you gain, the choice becomes clear.
A more frugal lifestyle allows you to take control of your finances rather than letting your expenses control you. It means having the flexibility to make life decisions—like switching careers, taking time off, or retiring earlier—without the constant pressure of living paycheck to paycheck. Your temporary adjustments can lead to a lifetime of peace of mind and opportunities. Those sacrifices are small compared to the freedom you gain in the grand scheme of things.
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