Do you save money??
Some of you might and some of you might not.
But most of us do not save.
We all can save money but we do not because we do not know it’s value.
Our parents have brought us up and they never made us feel the scarcity of money and we are not used to saving money.
But money does have got some value and if we can understand it now; we can shape our lives differently.
It’s not that we have to save a large sum of money, even small amounts compounded for long term can do wonders.
We try to avoid savings because we love to spend on the things we like; we want to go to movies, we want to buy a new mobile phone and many things like that.
And even we sometimes go into debt without thinking about its harmful effect.
Borrowing is saving in reverse.
When you borrow money; you are not borrowing it from somebody else rather you are borrowing it from your future self. In the future, you have to pay that money to get out of debt and you will be behind everyone else when everyone else will be saving for themselves you‘ll still be paying the debts.
When you buy things which you don’t need you are playing the status game.
A bike is utility to go from one place to another but do we just buy a bike only for that reason?
We try to build our status by buying things beyond our capacity. We feel so excited in the beginning of our new bike/car.
But when the bike becomes old, the excitement has gone now.
We seek to buy status with a more expensive bike that will create an illusion of status.
The staus is not going to stay for long and will be diminished in a short period of time because now there will be more new bikes in the market, more expensive ones.
“We buy things we don’t need, with the money that we don’t have, to impress people we don’t like “
Since we know that this money spent on is going to give us nothing except some fake staus for a while. We can now invest this money as we want.
Invest this money on things which appreciate in the future and can make you wealthy in the long term.
“Buying status is the worst investment. Buying utility and convenience is a good investment, buying assets that will appreciate in value is the best investment”
Invest your money on your health, your career, your relationships, your business and things that make your life more convenient.
These investments will have a compounded return over time. That’s how people become insanely wealthy.
And ironically, if you don’t try to buy status and invest your money for growth, in the long term, status comes automatically….because everyone else who tried to buy status with money will now be broke.
And guess who has all the money now? We the people who didn’t try to buy into status:)
So start saving from today and start your journey to become The Wealthy Men.