What we learnt wrong about MONEY…
Money is one wonderful resource, around which the world works. It ain’t a god but its nothing less than that. We all want to earn money - a lot of it. We wander around looking for any possible means that could make us that that extra rich. It comes in different form you call it a dollar, a pound a riyal and what not we call it Rupee.
We all are ready to walk that extra, work extra hard to earn it. But we never know this is not all what it takes to be that extra rich. We earn it we hold it but than we spend it on that extras we don’t even want it in long run. This post is not about how to earn money in few clicks or a numbered ways to make you a multimillionaire.
We all have our own learning and ways to earn money. We have resources, skills and methods to earn it right. But what it is then we are missing on to WHY aren’t we like that one handful of people that are getting super rich. What makes them ahead of the crowd when they too are getting similar education, owing same skill set and are living a super thrilling awesome lifestyle.
What I learnt over the past about money it ain’t anyone best friend. Today its yours tomorrow its with someone else. Yes I am talking about money circulation in the market. I still remember one fine day, way back in school out of curiosity I asked my teacher why we are not a rich country when we have our own mints to produce/print currency. That day I learnt a country's economy isn’t defined by how much currency it holds its about the reserve of gold it has/holds. I Still don’t find it true.
But something I learnt at my own over my past actions. We can easily earn but our habits of spending makes it different. Over the last week I stumbled around a thousand ways to in invest money to have an alternate source of income. But the first step, the very basics that I was missing on was to have money to spend be it on learning, or on a business or an Idea you have been holding so long to execute, all that needs money at least to setup your Idea nothing comes free in this world of digital engagement.
Here in I am sharing all the do’s that we have been doing wrong since ages or months and what needs to be done right.
1. Problem is not having money its about spending right.
We all have money, be it pocket money we get from home or the salary that credits to our account at month end. But if we don’t spend it right we will always lack it even if the earnings will be in crores. The problem is not earning, problem is not your savings its how much you are spending.
2. What we learnt about saving
way back in our school we have been taught Income- Expenditure = saving. This is what we believed in for ages. What If I say that we learnt it wrong. For me lets turn around the equations a little bit and see what wonders it can create in the long run. For me, Income- Savings = Expenditure. You might wonder what difference does it makes. But lets get into the basics of the same
Income- Savings = Expenditure.
3. Strategy can create wonders
The strategy had to be a way more different. For me it should be whatever you earn, you have to set aside mandatory some part as your savings and then what left around post savings should be your expenditure. You cant spend money first and than save it later. Believe me you have been doing it for ages and here you are still wondering where the money is going.
4. The magical formula
As we learnt it right, Income- Savings = Expenditure.
How much should be the expenditure can it be managed. can It be controlled if not can it be minimized to any extent. Yes it can be its all about the choices you make. I searched around it a lot and got a magical way. What we can call it 50–30–20 formula. Its basically, you have to save 20% of your earnings at first no questions asked. Lets say you are getting a 100(be it dollar, pound or rupee) and you set aside 20 out of it as your savings. you are still left around with 80. So now lets see how you are gonna spend it. Make a further division of 50–30 of the remaining amount. 50 Lets say has to be spend on necessities. Necessities like food, living(rent or monthly emi) and bills for the month, this is something you have to pay for no matter what. So we are left around with 30, this is the percentage we can spend on our wants. This left out 30% could be spend around luxuries, a holiday with friends, buying that new iPhone and what not. 30% doesn't sounds much. But when planned right over a month or two it can create wonders in long run
5. The digital world of endless desires
In this world of digital commerce each and every thing is just a click. We have a numerous app installed in our phones be it for shopping, a subscription that we hardly gonna use or the lurking sale around the season that we have been waiting for so long. Each and every company is comes up with their own sales around every season of the corner. The product prices are well managed that they play well with our mind. We find the slashed prices too low that even if we don’t want that particular product that point in time we add it to our cart list, pull out our credit cards and hit on that secure pay button, without even thinking if we really need that thing in long run or will that be a lying around in a corner of your house. And then at the end of months with empty pockets we keep looking for ways to pay those never ending bills. It starts as fun and becomes a habit and then a part of our lifestyle. Next time without making any purchase, ask yourself if you really need that product/service.
The idea is not to spend less, its to redefine our ways to spend it right
I have been following this for past six months and I haven’t seen another month without money as once it used to be. Hope it helps you too. happy reading, have a great day :-)
