Bill Gates once said, "Spending money wisely is as difficult as earning money." The same amount of money in different hands will have different flows and values. Some people will spend on whatever they want, some blindly follow trends and swipe their cards impulsively. There are also those who live frugally, measuring the cost-effectiveness of every purchase. Money is a mirror, how you spend reflects your knowledge, vision, and level of understanding.

People with low awareness fall into the consumerism trap.

A Nobel laureate in economics, a world-class expert on poverty research in the book "The Nature of Poverty," tells the story of a character named Parker. Parker is an ordinary farmer living in Indonesia, his family is very poor, and sometimes he can only afford to eat once every two days. As a result, Parker's body is extremely weak, he is even too weak to work or earn money. To lighten the burden on his family, he had to drop out of school to work or send his children to live with their grandparents. However, when visiting Parker's house, he was shocked by what he saw, there was a TV, a VCR, and a mobile phone in the corner. There was also some tea and coffee. He was puzzled. Why doesn't Parker try to fill his empty stomach before spending money on expensive things that don't bring much benefit at the moment? Parker told him: I have to have some joy for myself. He advised Parker that he could save money for health or for his children's education, but Parker still wouldn't listen, whenever he had a little extra money, he would use it to buy entertainment. Later, he found out that Parker was not the only one with such desires.

Most of the poor people in this area are like this, and he concluded that the reason people are poor is not because of income but because of low awareness. Many people are irrational in their consumption, they don't understand what they really need and never care about the return on investment. Therefore, they constantly fall into the consumerism trap. Similar stories not only happen in poor Indonesia but also around us. Nowadays, more and more people see enjoyment as their ultimate goal and prioritize treating themselves well, so they pursue whatever is trendy and spend money on whatever is above. Today I will drink a branded milk tea. Tomorrow I will buy a new mobile phone from some brand.

Unconsciously, we spend all our money without adding any value to ourselves. There is a saying that "what truly determines the gap between rich and poor is awareness." The less money you have, the more you need to keep a clear mind. Cherish every penny in your hand and carefully consider the cost-effectiveness of each expenditure. Spend money where it truly deserves, don't spend recklessly, this is the maturity that an adult should have.

People with foresight know how to spend money wisely.

Renowned financial planner David Bach once said that the problem with money is often not that you have too little income but that you spend too much. When a person has no money, it is often because their vision is too narrow and they lack long-term spending plans. Only by always reminding yourself to prepare for a rainy day and forcing yourself to save can you easily cope with various difficulties. There is a sermon like this. The preacher is Sun Ling, who worked at a factory in the early years after graduation and only earned 2000 RMB, about 6.5 million VND per month.

As soon as other female colleagues received their salaries, they would spend it on consumption or save it for dowry, but Sun Ling was different, she didn't want to spend her whole life working at the factory. She happened to start liking to learn about computer software. However, the training costs were too high, she couldn't afford the first lesson. So after careful consideration, Sun Ling began to save money, she planned her expenses tightly, ate very simply, and stopped buying clothes and jewelry. Not long after, she saved 30,000 RMB, equivalent to about 97 million VND. She used all the money to enroll in classes and after completing her studies, she found a job as a programmer.

She continued to save money while investing in herself. First, she improved her skills and learned English, then went to a university in the United States for further studies. A few years later, with her outstanding abilities, Sun Ling joined an internet company in New York with an annual income of millions of dollars. While her colleagues at the factory were still trapped in the loop. It was because Sun Ling spent money wisely that she was able to reverse her own destiny. Japanese economist Masato Noguchi once proposed the theory of the three wallets. He believed that everyone has three wallets used for consumption, investment, and speculation. Consumption is spending money to satisfy personal desires. Speculation means spending money to seek luck, such as buying lottery tickets, collecting artworks, ...

Investment is paying part of the cost upfront and then receiving long-term profits. For example, spending money to improve oneself and educate children. The truly wise masters know how to combine the three wallets as follows. The best money spending principle is "one less, one more, one reasonable." Less speculation, more investment, and reasonable consumption. Save when it comes to extravagance and useless things if possible. Spend on things that enrich yourself when needed, spend your money on things of value and you will reap countless rewards in the future.

People with foresight will spend money wisely.

How a person spends money determines to some extent the heights that person can reach in the future. People can be divided into three levels depending on how they spend money. Those at level one spend money randomly and buy whatever they think of. Pursuing short-term happiness without leaving any reserve fund poses dangers for the future. Those at level two may save money and tighten their purse strings. Although they may ensure their lives, they miss out on many experiences and never truly live for the present.

Those at level three know how to spend money and can spend it on things that truly have value. They make money work for them, compound profits continuously increase value for themselves, and have a richer life with more experiences. Some say wealth is like water in a pond, it flows every day. What we need to do is make the outflow of money more valuable and save costs.

First, spend money on health. Have you ever noticed the health traps around you? Many people only care about making money without caring about their physical condition, they wait until a small problem becomes a big problem before solving it. Typically, most of the money saved in life is wiped out in one illness. Early health spending is called an investment. Late spending is consumption. When it comes to taking care of our bodies, we should not be stingy, you can create a health account and regularly deposit money into it for exercise, health check-ups, medical treatment, ...

Second, spend money on relationships. There is a saying that "if you want to go fast, go alone, if you want to go far, go together." Money is a winged thing that only by letting go can you get more, when you are wealthy, share a part of your big pie. When others are in difficulty, help them, others will remember your kindness and reward you double in the future. The money you spend on relationships today will become a stepping stone to help you advance in the future.

Third, spend money on self-development. Instead of having money, become valuable, the ability to earn money from investment is more important than earning millions of dollars. In this fast-changing era, your current special skills may become invaluable after a few years. If you want to avoid being eliminated, you must constantly develop your abilities by constantly learning, updating knowledge and skills, then your value and income will increase.

Some say a person's understanding of money will affect their choices and ultimately determine their fate. Where your money and time go, your life will go, reckless spending can only satisfy temporary frivolity and boredom. With a proper plan, wise investment, and spending money wisely, you can continuously reap surprises and growth.

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