Are you desperate to Spend?
I remember my childhood that when I used to get some money either from my parents, grandparents or relatives, I used to keep it in the piggy bank (mainly the coins) and try to save it as much as possible so that I can spend later when I need. This cycle continued for my whole childhood and I do not have to spend that money and those coins are still lying in my piggy bank (yes I do have some coins in my piggy bank after like 20 years). Now I have given that piggy bank to my daughter and thus I intentionally ask her to add some coins to that piggy bank.
!
PC: Pixabay.com
Now, because of this reason I have more tendency to save than to invest because that thing is cultivated in my mind from childhood. And that tendency to save money is still within me. If it's absolutely necessary then only I invest and thus try to save it as much as possible. The urge to save is higher in me and that is cultivated from childhood and thus I am trying to build the same thing for my daughter too. Because if we do not understand the importance of saving money from childhood, it will be a big task to learn when you get older.
I guess this also reflect in your investing journey too, where you tend to save more and invest. Also the people who actually have this type of mindset are actually somewhat conservative investor (just like me) where we are not all in, in the riskier asset class and thus try to balance it with debt and equity, along with some real estate and crypto.
Now there are a lot of people who are actually quite opposite to the above personality where they are desperate to spend and live paycheck to paycheck or even spend more than they earn by using loans or credit cards. This is because they are desperate to spend and thus it became a habit of many and and its not easy to come out of this quite easily.
Now let's understand why actually people are desperate to spend. Though understanding is one step in the right direction to make it correct, might be people know it actually but it's good to have a refresher.
Show Off
Yes, people are desperate to spend because of showoff. I have seen people spend a lot of money to show people that they have a lot of money. People are actually buying flat, cars, new phone all on loans to just off to the society.
Financially illiterate
Other reason which I think of is that they are uneducated about finance. If you are financially illiterate you are bound to stay in paycheck to paycheck scenario and you will continue to spend desperately.
Boredom
Now, this is actually true to some people where they think that even if they lose some money they will be excited about the journey. This is actually good but again you should not be desperate to spend a lot of money just to get the excitement.
These are reasons which I can think of is why people are desperate to spend. But again everything drills down to financial education. If you are financially educated then actually you will not be desperate to spend everything which you earn. Now financially education is a must for each individual, I am not saying that people should invest everything they earn. But again the main thing is that people should save and invest something for their future.
Posted Using LeoFinance Beta
There's need for some persons to strive for financial education. Excessive spending or spending on liabilities is a proof that many of not literate financially. In turn, these sects of persons run into bankruptcy and debts. It is more wise to invest than to spend especially on things that do not bring any form of profits in return
That's absolutely true, financial education is the key to get wealth which we always strive for.
Posted Using LeoFinance Beta
Well said! It's sad that these things aren't taught at the early stages of life. Hence, the reason for the prevailing financial problems faced by individuals
Posted Using LeoFinance Beta
https://twitter.com/codingdefined/status/1482386415732555776
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
The marketing departments nowadays are also very skilled at playing the psychological game to make you spend money on things you don’t really need or want. And with the internet and smartphones, it is very easy to sneak in some random advertisement that make you feel the fomo because you don’t have that one product.
That's true, now-a-days there are so many things which attract people to spend. We just have to keep away from these things so that our money can be saved and create wealth.
Posted Using LeoFinance Beta
I think the status in society is largely to blame for this. There are idiots in the society who judge others by how much they are able to spend and not how much they are able to save and invest. These are mostly the rich people who try to screw over the middle class and poor by pushing them into something they are not comfortable with.
Actually, saving and investing is not seen by many in society, but buying new gadgets or new car is shown as a status symbol. The problem is people usually forget their financial status to do the showoff.
Posted Using LeoFinance Beta
Yup, I think we're both saying the same thing :)
I like Robert Kiyosaki's teach about the things that put money in your pocket and things that don't. I started to discipline myself to only spend the rewards from investing.
That's great, I too have read Robert Kiyosaki's Rich Dad and Poor Dad, actually a very good book to get financial education.
Posted Using LeoFinance Beta
!1UP
You have received a 1UP from @sketchygamerguy!
@leo-curator, @ctp-curator, @neoxag-curator, @pal-curator, @pob-curator, @vyb-curator, @bee-curatorAnd look, they brought !PIZZA 🍕
Delegate your tribe tokens to our Cartel curation accounts and earn daily rewards. Join the family on Discord.
This post has been manually curated by @bala41288 from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share 100 % of the curation rewards with the delegators.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
Read our latest announcement post to get more information.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
This post has been manually curated by @bala41288 from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
In spite of the wisdom in saving and investing, it's almost impossible to follow that wisdom path if one is living from hand to mouth.
But, it's wise to endeavour to save and invest in order to reduce heartbreak.
You cannot change everything overnight, but 1 cent a day can make a huge difference in the future.
Posted Using LeoFinance Beta