Emotional threat of Spending

Dear buddy, this is quite some sensitive issue to talk about here. Know why? Because if I ask people not to spend, I offense them by limiting/forcing them to have fun shopping. But if I ask them to spend, then another issue will be "incoming" in the future. So here in this post I would like to discuss a little about the word SPEND.

People who like to spend DO enjoy the moment of paying at the casher. (especially those who standing at the counter of LV, GUCCI, PRADA, LACOSTE...). I can imagine the feeling of satisfaction. Every month after you see the paycheck that incease the value in your bank saving, you feel like getting something to reward yourself. It's like my childhood time where I get reward in the form of present from my parent or from my uncle if i get flying colour in my exam. As I mentioned earlier on, I dont stop people from buying branded stuff as I will offense both the buyer and the seller at this point. So, I would just like to use the word DISCUSS here :)

Let's discuss about the spending procedure (in my point of view):

Spending case A=

Salary/Income >> Spend >> Basic needs >> Loan/Debt >> Saving/Investment/Buying asset.

Spending case B=

Salary/Income >> Saving/Investment/Buying asset. >> Basic needs >> Loan/Debt >>Spend

Ok, in case A and case B both do spend. But case A spend the money first and then only do the rest, but case B invest the money first before he/she starts to spend. Is there any different? YES! THERE IS! For people in case A, end of the month they will either save A LITTLE of money only or they will end up totally do not plan and spend all of the money before they can save. When people around them advise him/her to invest or plan properly, he/she will say something like this: "aiyakkkkk, I got my "branded" last week la.... bank kosong bosssss". But for case B, the day he/she get his/her pay, they do the investment and saving first as what they have planned. Then the rest goes to the debt and needs, and then the SPEND:). At this point, in my opinion, spending the extra wont give you the pain in the wallet, but spending the money early on will give you stress and pain. (you don't have to tell, your facial expression already told the world you're in pain). -sorry if I offense someone in this discussion. ANYTHING here are made out of story.

So lesson ONE: Pay yourself, before you pay the others. (from the book rich dad poor dad).

Now lesson TWO, as I said, spending is the emotional expression of the individual. Either him/her are trying to reward their self or just the hobby to shop and spend. Here, I can divide into 2 cases again. The LONG TERM HAPPINESS vs SHORT TERM HAPPINESS. As when you spend earlier on and do not plan with your financial, you will stuck in the middle class, and those who plan for financial will probably be in the first class. (I dont mean everyone who spend early wont get rich, neither do the ppl who plan earlier will get rich, but just that the probability is higher). The Power of Compound, I gonna bullshit a bit about power of compound when I have the time but for now, I will just say that this lesson no. 2 is linked to the power of compound. Let's us call it the POC. So, when you plan, and stick to the plan with DISCIPLINE, you will be able to follow according to your financial planning path. But if you just chasing for the fun-ness of the short term happiness, and get yourself something branded in the early stage, then you might be a bit slower catching up with the upper class. REMEMBER, when I say branded doesn't mean you don't buy quality stuff. In my opinion, when you have the necessary of having that particular things, get it in the best quality so that you can save both your time and your money in the long run.

So, lesson TWO: Spend on the necessary with QUALITY, and DON'T spend if you do not have extra and you don't really need it.