Updated: Feb 28, 2021
Let's start straightforward without wasting any time and put first things first. A major factor that lags you from accumulating wealth is nobody else but you when you don't really know the difference between your needs & wants. You spend your income as soon as you receive it because well, YOLO! You probably end up buying really expensive stuff that you don't really require sometimes. Confusing your wants with your needs makes you think that your expenses are more than your income and your income is no longer sufficient to fund your spendings!
Let me change this mindset of yours.
Living LIfe to its fullest, #YOLO!
Before we go ahead let me remind you that I'm of your age only (22yo). So yes I do believe in living life to its fullest. So why am I behaving like an old uncle telling you about saving your money? Here's why.
Our generation believes in being independent (financially), we don't want to bother our parents about them taking care of us anymore. We are grown-ups or maybe sometimes we just act like one! We want to do it all by ourselves, yes exactly ALL BY OURSELVES. We want it and we want it now, ASAP.
Also, we want to match with our peers which leads to nowhere but to more and more spendings. Because how else one could tell the world that 'I HAVE DONE IT!'
How far you can go with spending your money like this (no matter how much you earn)..??
Is it taking you anywhere financially? Nahh! I don't think so.
Where does it take you?
How's the life worth living for when you limit all your 'future demands' by spending carelessly today?
Let's say, for instance, buying a smartphone is a need but buying a premium one is WANT (unless it is really your requirement). Just because having it makes you feel good, makes you feel likable around people or whatever the reason, it just took extra money out from your pocket which you'll never get back and it's kind of unfair to your 'finances'.
I didn't talk about brand names or price tag here but you are smart enough to figure it out by yourself.
Ask yourself a question before buying anything,
Do I really need it?
Or I'm just buying it because everyone's talking about it?
Or maybe just because having it makes you feel cool?
Buying new clothes & expensive accessories every now & then, having a flashy smartphone, and riding a cool motorbike might make you feel like a rich person but do make a note here that it actually makes you poorer as it takes away your hard-earned money & gets you nothing but a feeling (which is based on other people's opinion & thoughts). Seriously??
Everybody says YOLO, you only live once!
But deep down you know that you can live & maintain a good lifestyle only when your pockets are filled. So don't just think of now, start thinking of the long term. Start projecting yourself where do you see yourself say 10 years down the line financially. Start creating your sources of passive income. Because you truly can't be independent if you're not having financial freedom!
(Financial freedom means when you don't need to work for money anymore. When you've done enough investments that all your living expenses are taken care of.)
I really love our spirit that how we thrive to become an independent individual, maybe it is the most important factor that differentiates us from our previous generation. So let's adopt a habit from our parents & grandparents of being conservative when it comes to money but also be smart enough to plan our finances. Think of your financial future, think financial planning.
Let's conclude it with the wisdom of Warren Buffett - "If you buy things you do not need, soon you will have to sell things you need."
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