Spend you are poor, don't spend you are poor too

Talking nonsense? Perhaps. But let me give you a scenario. Imagine that you suddenly realize that your uncle has included in his will 1 million dollars for you but he is now 60. Fortune tellers confirm that he will live up to 110 years. You are 40 now and that means you could only inherit that 1 million at age of 90 years, do you FEEL like a millionaire now?

The answer is mostly likely you don't have such feeling because you cannot access that fortune. The same goes with our own money and assets. If you do not ‘consume’ it, it is as good as not having in a way.

Hence, we must know how to differentiate between acquiring fortune and acquiring richness. Acquiring fortune simply means that we work hard to get more and more money. By doing so, we are able to keep more money for rainy days which of course is very important. But any savings beyond this point is going to be quite meaningless as it becomes your ‘uncle’s fortune’. It gives you a good feeling of assurance but apart from that, you do not benefit.

‘Acquiring richness’ to me simply means we try to acquire assets but without compromising quality of life. In other words, while we save, we also spend accordingly to improve quality of life. The principles that to be balanced here are ‘money for raining days’ and ‘leading a quality life’ without having assets stuck in ‘uncle’s property’.

Imagine we have a pay rise. Besides saving for the rainy days, why not also budget a bit for upgrading your internet service from dial-in to broadband? (If you need speed of course). Instead of cursing in a jam, use the highway with toll payment instead? Instead of worrying about getting a summon for illegal parking, park in a shopping mall perhaps? If you are in a stressful urban life like mine, these are little things that can help alleviate your suffering. By the way, it’s cheaper than treating hypertension for sure.

Well, the choice is ours. It’s a delicate balance between saving for rainy days and spending for quality life. If the worry is that there may not be enough for the next generation, may be my point of view can give some perspective:

a) maximize your death – we all know that death is certain. Buy insurance to cover it so that you use your money and your kids use your insurance money!
b) The best gift for the children is giving them education – not only in technical term like a college degree but AS WELL AS management skills such as how to manage money, manage time and manage LIFE!