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Sometimes, I wonder why people making lots of money at work are still complaining about not having enough money. Then, if we ask a few questions, we understand why.
Often, the reason is because they scaled up their consumption as they made more money.
Keep our lifestyle simple even as we make more money over time. That is a sure way to having enough money now and in the future.
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| Want some ice cream? We don't have to go to Swensen's. |
Over the years, quite a few readers have written to me to say that they took action after reading my blog posts. I am happy that they feel less stressed up and more secure about their finances now.
Recently, I wrote this in reply to a reader:
"I am happy to sense a tone of determination and also a clarity of mind in your message. You have a plan now and you sound confident of your financial future."
I would have liked to share his story but he would rather not have his story shared. It would have been quite helpful to some, I thought, to read a real life account of how scaling up our consumption even as we make more money would set us back financially.
I will end with a Chinese saying:
师父领进门，修行在个人.
If we do not act upon a good idea, what good is the idea to us?
Related posts:
1. Are you sometimes forced to be extravagant?
2. The evil instalment schemes and their minions.
3. An essential habit to becoming richer.
Free "e-books" on financial security for Singaporeans: here.
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6 comments:
From my FB wall:
秀秀:
Easier said than done. Trying very hard to scale down my shopping and restaurant binge. :(
Mimi Melati Gunawan:
Can be done. Very painful at first. Even now we will still indulge occasionally, can not deprive hubby and son too much otherwise they will rebel without my knowing, worst. But at least now manage to save substantial amount monthly. And when hubby saw the amount, happier to cooperate. Must improve further, åŠ æ²¹。
Be inspired! :)
Jia you! :))
Actually hor. ...i still think ppl spend money coz they hv too much time on their hands. Shopping and eating out at restaurants. ...all requires time. If we put our time to meaningful use....no time to use these unnecessary spending.
Hi pf,
Did you sign up for a few more courses lately? ;p
Yes i did. :)
aside to that, flat hunting, mortgage hunting....all these take up time too.
It is very natural that when one's income increase, the spending also likely to increase "proportionally".
Most people is like that. If not, why earn more money?
However, the active income (working for people) does not last indefinitely. It will come to an end when it due. I am speaking to myself as I am now retire.
So, while we indulge ourselves for higher living standard, we shall not forget to save more for golden age. Rule no 1 is to Pay Yourself First. The amount is relative, but rule of thumb is 15% from net take home pay (after CPF deduction). Some has save 50%. I save 25%.
Spend wisely and make it a good habit. Sometime we buy expensive stuff with high quality. It end up cheaper than buy lower price with lower quality. Don't be "Penny wise, pound foolish".
I buy what I need, may be not cheap but value for money.
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