“Live as if it’s the last day of your life” – amazing thought it is!!!! But are we taking this philosophy too seriously? Few days back I happened to come across a few youngsters who wanted to plan their finances and believe me talking to them was real fun. I asked them a simple question ‘what does money mean to them’? The answer was simple it’s a medium to buy what we need and what we want. But the shocking fact was they knew how much were they spending on their needs but had no clue of the amount being spent on wants. It’s not just with these few young people, it’s with almost everyone today. People have no clue where is the money being spent. I understand, we work hard day and night to live our lives but is it just about living for today? What about the future? Who’s going to fulfill your dreams of going to that exotic vacation or going for masters to a reputed university or buying a car etc.? Have you thought of it? Of course we have but it’s not in the priority list right now. And if it’s not today it would be never!!!
Money talks are all about “where we spend”
Money is one of those conversation topics that people often refrain from bringing up at party with friends or colleagues etc. People talk about the latest gadgets, cars or clothes they have bought or a recent party or a vacation they have been to. Nowhere these conversations involve talking about spending wisely. Today, people are overly influenced by how their friends and family spend and hence most of us don’t talk about wise spending ideas considering what would people around think. But would it solve the problem?
Not monitoring how much we spend
When the bank a/c gets credited with pay at the start of the month, it gives immense happiness and people start thinking about the things they have to spend on, this month. Having money in hand boosts up the confidence to spend. Every month we incur majorly two types of expenses: – one which are need based such food, shelter, travel, utility bills such as electricity, internet, telephone etc. and the others which you may or may not need such as clothing, recreation etc. And that’s how the income is consumed. When I ask people how do you save, and people often say” paise hi nae bachte, save kaha se karein”. The problem is we know what comes in but we fail to keep a track of what goes out.
Imagine you have Rs.5000 in hand, what would you do with it??? May be go for a party or buy some clothes or accessories or someone might even think of saving it for the down payment of car. Buying clothes or accessories or going for a party will give you immediate pleasure and saving for down payment of your car may defer you pleasure. Hence people often choose to spend on something that gives them immediate pleasure and future needs go for a toss. It’s true all of us would die one day and it’s wise to live to the fullest today. But what about the dreams that you want to fulfill tomorrow? It’s you who will have to pay for those dreams.
If you think I intend to say that you should be miser and save every penny that’s left after spending on your day to day needs; the answer is NO. Never ever do that. You earn not just to save but also to fulfill your aspirations. Fulfill your dreams and desires but before spending, just take a moment to think “Do I really need it now”.