The Ideology Of Spending Less, Earning & Owning More
When we spend more than we own, it means we need to earn more than we spend if not, bankruptcy becomes possible and incurable. Being bankrupt mostly results from carelessness, most people in Nigeria imagine the worst of their finances when they're good enough. But they keep themselves in this Mental positioning because of the fear of bankruptcy.
However, economics is majorly to manage resources. If everyone were wealthy without their spending spree having any repercussions, the principles of economics will make no sense. So, we create a sense of limitation or a line we cannot cross when it comes to spending, especially for people who have experienced the pain of having no emergency funds in their times of emergency.
However, it's not everyone that wants to spend less and own more. There are bizarre people in the world, while some others care about safeguarding the future of their kids, some others just want to have fun and spend everything they earn. This means that people can choose to wear or own their worth, saving to some others is a mirage and that's why some people live for today, creating the external illusion that they're wealthy or that their bank account is fat and shapeless.
It's bad to create a wealth illusion when the things we own don't reflect this phenomenon. It's also important to understand that one of the reasons we need to live minimally is because is to create the correct financial impression about us.
For example, dressing flamboyantly is a status increaser. While some people truly do so because they have money, some people just do this unnecessarily for reasons that are not logical whatsoever. As a person who is seeking to attain some financial height, minimalism is important until we hit a milestone where some financial actions wouldn't come with consequences we cannot bear.
There are indeed figures we might hit in life and everything changes, but if we do not get to these figures, we have to sharpen our spending culture and habit to a particular limitation. More so, in the journey of personal finance, I can say we're mostly learner, and hence more room for mistakes that becomes experiences in our lives.
In reality, not everyone knows the importance of minimalism in personal finance. However, the more learned we choose to be, the better for us. It's mostly more advantageous to underestimate how much we're worth because it creates a sophisticated need for us to manage and cut down on our excesses. 2023 for me has started on a different note and one of the disciplines I've mastered thus far is hitting certain figurative milestones before spending certain figures.
I think people make resolutions out of fear of becoming what they were and sometimes these resolutions act as reminders for us to be tethered to logic especially when we're meandering from reasoning to becoming irrational.
Money tickles people and this is one of the reasons why people are advised to be disciplined. However, this is hard on its own. Discipline is difficult. Money creates a situation of emotional instability and this is why we tend to learn the act of discipline every day of our lives.
However, this isn't to say we should be fearful of spending, the truth is that spending without a thorough understanding of our financial environment can set us back. In the journey of personal finance, how much we spend is irrelevant, the goal is to never hit bankruptcy either in an attempt to own or multiply what we have by sacrificing what we own or by being too careful not to lose what we already have.
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In this country, a lot of spend more than we earn. Mainly because the cost of things are increasing but our salaries are still at the same amount and even cut down in some cases.
That is the main truth, many spend more than they earn, it's the practice of trying to change this while owning more that I've expatiated on.
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Thats true, we should be careful on that because in life there can be come ups and downs. If we spend randomly then we will be in empty hand when we would need. I have once faced that problem in my life, since then I stay careful. And also we should not waste anything in life.
Great post @josediccus! The ideology of spending less, earning more, and owning more is crucial for financial stability and wealth creation. It's essential to live below our means and invest in assets that appreciate over time. Keep the valuable insights coming!
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Inflation makes it difficult to live within our means, this is mostly why it becomes a struggle in our lifetime to achieve a situation where we own more assets and spend less. Nigeria is one of such countries that makes it difficult.
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Man, You're on Point.
When it comes to spending money first thing knocks my mind is "Duh, you know how much you earn" and can't exceed it.
This way I keep things Balanced by preferring my needs and controlling demands. No matter how much worse inflation could go... If we want to save or make things work better is using money wisely in limits.
Well sometimes, we exceed our budgets even when we know how much we earn. Life can get in the way and make things difficult. External factors are also there
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I agree with your view that people need to consider where their money goes. I think the biggest issue is that most people don't have much financial education. It's not taught in school and people generally have to look out for information on their own. I'd rather spend less and own more.
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There would be more that wouldn't be taught in schools subsequently. I feel that people would be responsible for rne education they wish to have, it's always going to be a necessity
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The issue of keeping up with the Joneses has led many people to bankruptcy, people love comparing themselves to those around them. Spending less than what comes in should be everyone's mantra, once you spend more than you earn it's a recipe for trouble. As you rightly put it spending is not a bad thing and has to happen but within the earning parameters.
Thank you so much for sharing and keep enjoying your weekend :}
Thank you. Bankruptcy is not as far as we imagine if we underestimate it totally. Spending has got to happen, but the amount of money we earn cumulatively must always be considered.
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Keeping gains is always harder than making money, in now days society spending multiplies rapidly because IMO has become a way to emotionally patch bad moments like stress, depression, I think thats something most ppl dont pay attention too since they dont know whats the trigger, when they feel bad they like to spend money, my point is that its the worst financial mistake since its like a disease so at the end ppl just end up in financial troubles before they know...been there, done that for years....thanks God Im clean now after having kids, family and responsibilities, thx for sharing ✌️
I appreciate your insights regarding the significance of minimalism in managing personal finances. It's crucial for us to be mindful of our spending habits and handle our finances prudently. The journey of personal finance is a perpetual learning process that necessitates discipline and a comprehensive comprehension of our financial surroundings. Your post is enlightening and can be valuable to anyone looking to enhance their personal finance practices.
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Thanks for the comments. Like you've said, it's a personal learning process and people have different experiences that shapes their knowledge, so we might not learn the same things, or learn the same things in different ways. The idea is uniqueness at the end of the day.
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