In matters of money, most people’s ultimate aim is one of the following while trying to balance between the two:
- A life of extravagance, enjoying all the riches and wonders life has to offer at the expense of money. This lifestyle is financially not realistic for majority of the people through. Such people practice a growth mindset esp. for financial subjects.
- A frugal life through deliberate practice of spending consciously the minimum amount possible. Such people believe in the practice of need over want and focus on extracting the maximum value from a fixed set of wealth.
Most people always have a conflict of the lifestyle to choose esp. in the face of something materialistic that they have wanted for a long time. Amidst such dilemmas, keeping into consideration a couple of points can help in taking a decision regarding which one is wiser-spending or saving:
- We have only one life and how we make the most of it depends on us. Money lost can be made back but time lost is never coming back. So decisions has be made wisely.
- At times, it is ok to indulge in a bit of extravagance esp. if it’s something you had been meaning to do/buy for a long time.
- Continued extravagance on unnecessary things in the name of experience is a bad financial practice. So everything has to be balanced out.
- Not all extravagant purchase will be worth it during the post-purchase period. But it’s ok, the very fact that we did not know it beforehand was what enticed us to buy it in the first place to know it better.
- Extreme of anything is bad, be it extravagance or frugality. Too much extravagance leads to wastage of money while extreme frugality can come at the cost of the desired quality of life.
So the next time you are faced with this dilemma when it comes to spending money, considering the above points and taking a call may help you in taking decisions with minimal chances of regret.
Thank you for your time.
See you tomorrow!!!