Many people believe that earning money is not easy, so they cannot spend it wastefully. In addition, many people also have the view of saving money for emergencies, while some believe that the purpose of earning money is for enjoyment. If we cannot spend money on ourselves because we work far away, then what is the point of living. Many young people are firm in their belief that in this day and age, saving money and not spending money are no different, because why. Because land prices and house prices keep rising, so do commodity prices.

Who has the ability to save money, it is better to spend money to enjoy life. But in reality, those who choose to save money from now on may seem frugal at first glance, but their future has a clearer purpose and plan. The more years go by, the more the saved money will help extend their lives further away from those who spend as much as they earn. At the same time, those who live carefree can continue if their work environment is stable, but if unexpected problems arise, their enjoyment will definitely be interrupted. When faced with emergencies, people without savings will become more frantic in finding solutions compared to those with savings, and the result may be facing relatively serious and dire consequences.

There is a saying: "Transitioning from a frugal, simple life to a luxurious, extravagant life is easy, but living a frugal life after living extravagantly is extremely difficult." This is very true for those who have always lived carefree, when suddenly they find themselves in a situation where they need to be frugal. It is likely that they will be willing to plunge into a cycle of debt to meet their needs regardless of the high price they have to pay. This may be the time when you become a prime target for various types of installment loans and credit cards. With the confidence that they have a monthly income, many people convince themselves that they can easily repay these debts, and the result is that they end up buying things beyond their financial means. This is when you voluntarily bind yourself to debt.

Whether big or small, being in debt is a barrier that significantly slows down the process of accumulating substantial assets. Once in debt, you not only have to pay to own things beyond your reach, but you also have to pay additional money for the accompanying interest rates. Furthermore, your salary increase rate is certainly not as fast as the rate of interest and inflation, so you will usually find it very difficult to repay both the principal and interest within the allowed time. What's worse is that you may change jobs in the first few years of your career. This means that your income is not as stable as you imagined. Many cases of borrowing money with high interest rates lead to debt evasion and unfortunate consequences.

Why do some people work hard but still live in extreme poverty?

Usually, those with low incomes are often criticized with phrases like "not willing to work hard," "not persistent enough to jump from job to job," "lazy and only like easy work." But in reality, there are some people who are willing to throw themselves into work but not always earn proportionate amounts of money. Street vendors have to wake up early every day to wander the streets to make a living until late at night before returning home. Stall vendors in the market endure heat all year round, earning just enough to get by each day. Outdoor workers endure the sun and wind regardless of the dangers to do hard work.

Factory workers work overtime sitting in assembly lines all day. They work diligently enough, but they are all hardworking and diligent workers, yet they still do not have the life they desire. The truth is, if a person is willing to earn money, they also need to learn how to save money. If they do not know how to save money and spend as much as they earn, life will still be a series of passing days, and old age will come quickly while they still have nothing. Perhaps people like this belong to the slow social class and live relying on monthly wages. A month's salary may be enough to sustain the life they desire.

Save money to spend wisely

Take an example like this, so you can understand the issue. A is a shopaholic, receiving 3-4 orders every day. Most of the items purchased are snacks, clothes, and many miscellaneous items. When asked why A does not save money and keeps spending wastefully, people wonder where the money will come from for marriage, supporting parents, or how they will cope with illness or accidents. In response, A believes that unfortunate events are for the future, assuming that if accidents or illnesses occur later, they will not be able to spend money. To some extent, A's words also show that they are an optimist.

However, life is a continuous process, and if you spend all day thinking about what will happen if you have an accident and cannot spend money, it is very difficult to accept the idea of spending every penny to truly enjoy life. Someone like A is not actually enjoying life in the true sense, because every time they look at their account, A worries, but then this feeling quickly passes. A has no awareness of disciplining themselves with money. Enjoying life is a long-term thing, accompanied by peace of mind. While A spends money to enjoy life, when they run out of money, they feel regret and worry. For someone who understands how important money is, they will see their phone as a communication tool, not chasing trends, and walking or jogging as exercise instead of spending millions on gym memberships each year.

To learn something, you must first research on the internet, everything is free. Many people spend on unnecessary things. Warren Buffett once said, "If you buy something unnecessary, not long after, you will have to sell the essentials. 80% of what we buy is truly unnecessary in life."

A person who does not talk about money will never grow up, and a person who does not understand the importance of saving money is the same. Saving money does not mean ruining life; in fact, enjoying life does not require spending a lot of money but is about having a positive attitude from the inside out. The highest level of self-discipline for a person starts with saving money; if you have a savings fund, you will confidently handle unexpected situations.

Are you saving or being extravagant?

Do not confuse the two concepts, which will make your life more tiring. There is a thin line between saving and being extravagant. What category do your expenses fall into? Many people are used to thinking that 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, viewing it as a motto to help them save more money. But in reality, they are wrong because with these expenses, although they may save more money than others, they are gradually destroying their lives. Because by always chasing after saving, you are not taking care of your current life. As a result, you always struggle and regret when spending your money.

Truly, a saver cannot expect to live a life like that, and that is being extravagant. Because you are confusing saving and being extravagant, it causes many troubles in life. One thing you need to know is that smart spenders never let their lives fall into deprivation, no matter what income level they are at, they always find a way to balance their finances and use money for the right purposes, instead of trying to cut all expenses. Suppose two people have an income of ten units, the saver will spend 6 units and save 4 units. The extravagant person will spend 2 units and save 8 units.

At first glance, it seems that the extravagant person will save twice as much money as the saver. But look at the quality of life of each person. The saver will use money to rent a comfortable, clean, fully equipped and secure house. After a tiring day at work, they will come home and experience a comfortable life to recharge for the next day. The extravagant person will try to forget the cheapest accommodation possible and live far away. The amenities of this place are almost non-existent, imagine spending a tiring day at work and facing a cramped living space. This makes their life more tiring. This is an example of the countless examples of the habits of savers and spenders.

Savers always build a life in line with their financial capabilities. The core is that they always consciously build and take care of their lives.

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