Breaking of an Annoying Habit!!! – Savings & Investments

By far the most controversial and irresponsible topic if I ever were to take up in any form of conversation dealing with Money. For some reason my aversion towards money is unreasonable. I cannot specifically list out an incident which made me hate money or in other words made me never keep money with me. Like most of my buddies describe me as a spendthrift, I typically am one. Before you guys make up your mind that I am boasting myself here, I want to make it clear, this is not just one testimony, I have had several individuals point out this side of my character. For me to be characterized as an insane spender is one, but I do hold myself well accounted of the money that I spend. But yeah, I am not here to talk about my spending, but in general the whole idea of savings and investing, on which as of today I have no intentions and given that I remain the way I am, will never have. Why cannot we spend what we earn without even thinking about the future? Living for the future? Bull Shit!!! Since this is a highly personal way of going about life, I will have the two sides of the coin flipped in this post.

Just a thought...

When I was young my Dad used to always encourage me to save, opening an account on my birthday, matching any money I put into an account with the same amount from him, making me list my spending in an account book, etc. It really left an "investment" mindset in me. I've never been comfortable with this idea of not having "money put aside". I always want to get rid of what ever I have. Even today I have no intentions of taking a house or for that matter anything else for investment purposes.

Newton’s First Law

States that all bodies continue in its state of rest or uniform motion in a straight line unless a resultant force is applied to it to change its state.

There is a tremendous risk in slowing down and stopping. Being stationery far too long would expedite the rotting process. Life is about going on and on, definitely NOT about stopping or slowing down. So why stop and save, I say spend and move on.

Living is a continuous journey, ending only when things die and remain motionless forever. It is a daily strive for freedom and improvement, financially, mentally, and in all other senses. We just cannot stop unless there is no more energy and life in us. No one, including myself and you would want to regret at the end of our journey of life and wished that we have another chance to live our lives all over again. We all live once and we may not get a second chance again. So we would never want to think when we die (lolz), hmmm should have spent a little better! Sure does sound vague but true.

So, is it better to enjoy your money when you earn it or is it better to save your money for some time in the future?!

The first, most important requirement for financial freedom (and release from the stress and anguish that financial problems often cause) is to live beneath your means. No matter what you earn, there is someone in your neighbourhood who lives on 10% less than you do -- and is happy with his or her life.

Saving money is clearly a trick to learn.

We should have been trained to spend every last penny we earn (this is clearly a cultural phenomenon -- contrast it to Japanese spending habits, for example). But do we have to? Saving just 10% per year over the course of your career makes for a very smooth financial future. Eeeeeeewwwwwww, now I am taking about savings. Yes I am, but look at the proportion, 10% of what you earn an year is good enough for you to make a smooth progress. One has never to repent for his doings in the past, but certainly gain from it.

According to me, there are three ways you can use money. You can waste it, you can spend it or you can invest it. How are you spending your money? Let’s have a look at the three ways of using your money.

Wasting Your Money

Those who waste their money don’t even give a second thought to where their money goes. They waste their money on stupid things such as gambling and porn, and they have an “it’s not my responsibility” towards money where they will never apply principles for good money management but instead they simply blame someone else for their poor financial situation. They blame the government, or they blame to lotto and the fact that their numbers didn’t come up. If you fall into this category then it is time to change you attitude and mindset towards money quick smart. Stop wasting your life and wasting your money, learn to invest your money.

Spending Your Money

Spending your money is a step up from wasting your money but it is not much of a step up. People who spend their money use their money to provide themselves with items and pleasure right now but do not care to think about the future. People who spend their money often end up with large credit card debts as all they use their money for themselves right now, they don’t think about the future. I see people all the time who work all week and then spend all their money on the weekend drinking and smoking and partying. Effective spending is a solution for this; I certainly fall under this category.

For example, Buying a $40 shirt can be cheaper than buying 3 shirts at $13 each -- if the more expensive one is better quality, it should last longer than three cheap ones. The trick is to buy LESS items but items of better quality. Shopping where everything is $9 and under can make you go broke as the items may constantly wear out. Buy better quality, not to be confused with higher price. Most consumers know when something will last a long time and give them little trouble. These things also may have a better warranty, which makes ownership more cost-effective and reassuring.

Investing Your Money

People who spend their money in this way think they are spending their money wisely. Instead of just wasting or spending their money they are investing their money so it brings a solid return. This can be a return for themselves or a return for other people when they give their money away.

Investing money is a completely different mindset to spending money because you are not just thinking about now. You are more thinking about the future, you sacrifice now so that you and those in your sphere of influence can have a better future tomorrow. So, is this where you should be spending the most of your money? Certainly not me.

Like I said this post has many things tide to it, I do not hold anybody stupid for what they are doing now. But still, isn’t it an annoying habit!!!