Many people believe that earning money is not easy, so they cannot spend it wastefully. In addition, many people also have the view that saving money is to set aside funds for emergencies, while others believe that the purpose of earning money is to enjoy life. If we cannot spend the money we earn, then what is the point of living? Many other young people are adamant that in this day and age, having savings and having no money to spend are essentially the same, because why? Because land and housing prices are continuously rising, and so are the prices of goods.
Who has the ability to save? It is better to spend money to enjoy life. But in reality, those who choose to save money from now on may seem to live frugally, but their future is more purposeful and clearly planned. The more years that pass, the more the savings will help their lives stretch further compared to those who spend everything they have. At the same time, those who indulge in spending can continue if their work environment is stable, but as soon as their job unexpectedly encounters problems, their enjoyment will definitely be interrupted. When facing emergencies, those without savings will become flustered and think of ways to cope compared to those with savings, and the result is that they may have to face relatively serious and tragic consequences.
There is a saying: "It is easy to transition from a frugal, simple life to a luxurious, wealthy life, but once you have lived a luxurious life, it is extremely difficult to live frugally." This is very true for those who originally indulge in spending, when suddenly faced with the need to eat and drink frugally. It is highly likely that they will be willing to plunge into a cycle of debt to meet their personal needs, regardless of the high price to pay. Perhaps this is when you will become the prime target for various types of installment loans and credit cards. With the confident mindset that they have a monthly income, many people convince themselves that they can easily pay off these debts, resulting in them purchasing items beyond their financial means. This is when they bind themselves into a cycle of debt.
Whether big or small, being in debt is a barrier that slows down the process of accumulating significant assets. Once in debt, you not only have to pay money to own things that are beyond your reach but also have to pay additional interest. Moreover, your salary increase is certainly not as fast as the increase in interest rates and inflation, so it is usually very difficult for you to pay off both the principal and interest within the allowed time. Worse, you may change jobs in the first few years of your career. This means your income is not as stable as you imagined. Many cases of borrowing money lead to debt and result in unfortunate consequences.
Why do some people work hard but still live in hardship?
Typically, low-wage workers are often criticized for "not working hard enough," "not being persistent with job hopping," or "being lazy and only wanting easy jobs." But in reality, some people are willing to throw themselves into work, yet the money they earn does not always correlate. Street vendors have to wake up early and wander through alleys to make a living until late at night. Those who set up stalls in markets endure the heat year-round, earning just enough to get by. Outdoor workers face the elements regardless of danger to do heavy labor.
Factory workers sit in one place all day on assembly lines. They work hard enough, right? They are all very diligent and hardworking, yet still do not have the life they desire. The truth is that if a person is willing to dive into making money, they also need to learn how to save money. If they do not know how to save, spending everything they earn, in the end, their life will still be a series of temporary days passing by, and before long, old age will come while they have nothing in hand. Perhaps such people belong to the slow-moving segment of society, living off their monthly salaries. A month's salary can hardly fulfill the life they desire.
Save money to spend wisely
Take an example like this, so you can visualize the issue. A is a shopping addict, receiving 3 or 4 packages every day. Most of the items purchased are snacks, clothes, and various other things. When talking, everyone wonders why A does not save money but continues to spend wastefully like that, where will the money come from for marriage, supporting parents, or what will happen when illness strikes. In response, A believes that misfortunes are matters of the future; if an accident or illness occurs later, then even if they want to spend money, they cannot. To some extent, A's words also prove that this is a person living with an optimistic attitude.
However, life is a continuous process; if one keeps thinking that tomorrow, if they encounter an accident and cannot spend money, then it is really hard to accept the idea of spending every penny to enjoy life. A person like A is not truly enjoying life because every time they look at their account, they worry, but this feeling quickly passes. A has no awareness of self-discipline regarding money. Enjoying life is a long-term thing, accompanied by peace of mind. Like A spends money in a way that seems to enjoy life, but when they run out of money, they feel anxious and worried. For someone who understands how important money is, they will see their phone as a communication tool, not needing to follow trends, and running is also a form of exercise instead of spending millions on annual gym memberships.
Wanting to learn something, one must first research on the internet; everything is free. There are too many people spending on unnecessary things. Warren Buffett once said, "If you buy something unnecessary, before long, you will have to sell the necessary things." 80% of what we buy is truly unnecessary in life.
A person who does not talk about money will never mature; a person who does not understand the importance of saving money is similar. Saving money does not mean ruining life; in fact, enjoying life does not require spending a lot of money but is a positive attitude from within. The highest level of self-discipline in a person starts with saving money; if you have a savings fund, you will be confident in facing unexpected situations.
Are you saving or being stingy?
Do not confuse the two concepts that make your life more exhausting. There is a thin line between saving and being stingy. What type of spending do you belong to? Many people are accustomed to thinking they are very frugal by spending as little money as possible. They bargain for every penny and do not dare to spend anything on themselves, and they see this as a principle to help them save more money. But in reality, they are mistaken because with such spending, although they may save more money than others, they are gradually ruining their own lives. Because of constantly chasing savings, they do not take care of their current life. Thus, they always struggle with legitimate needs and regret when spending their own money.
In reality, a saver cannot wish to live such a life, and that is being stingy. The confusion between saving and being stingy causes many troubles in life. One thing you need to know is that smart spenders never let their lives fall into scarcity; regardless of income level, they always find ways to balance finances and use money for the right purposes, rather than trying to cut all expenses. Suppose two people have the same income of ten dollars; the saver will spend 6 dollars and keep 4 dollars. The stingy person will spend 2 dollars and keep 8 dollars.
At first glance, it seems that the stingy person will save more than double what the saver does. But let’s look at the quality of life of each person. The saver will use money to rent a decent, clean house with full utilities and security. After a tiring day at work, they will return home and experience a comfortable life to recharge for the next day. The stingy person will try to find the cheapest room possible and live far away. The amenities of this place are almost non-existent; just imagine a tiring day at work and having to face a cramped space. That makes their life exhausting. This is just one example among many regarding the habits of savers and stingy people.
Savers always build a life that matches their financial capabilities. The core is that they are always aware of building and taking care of their lives.