Monday, February 22, 2010

How spending less results in saving less

I noticed a real significant change in me.

Since the start of the year, I'd been having a real shift in how I view money. It's very very stark to me because I realised how much I've shortchanged my life till now. In the past, I was quite focused on the amount of money that I had in my bank. Somehow that meant security to me - so perhaps that's why I kept hoarding money and trying all I could to increase security.

It took me a long long time to change that view. The proverbial straw that broke the camel's back must be the reservist stint that I had recently in Jan this year. After I came out of it, I felt very enlightened. It could be the change of environment that made caused this shift in me, but nevertheless, I came out feeling very happy.

In the past, I used to care more about expenses. I would do all I can to reduce it. These days, I care more about increasing my earnings. I would gladly spend money for the following reasons:


1. It makes me happy

2. It goes towards furthering my goals and purpose

3. It saves me time

4. It fosters relationships and forms new experiences


I starting spending more money and feeling all the more happier because of it. My mindset used to be that I have limited money so every money spent must be scrutinized carefully. If it's not a need, delay it. Wait a few years or a few months then decide again. I missed a few opportunities because of this mindset (the guitar that i wanted is no longer sold; a memorable figurine that I wanted is gone too). I reflected and think about the whole host of opportunities that could have gone if I keep on doing this and realised that this is not the way to go ahead in life. My life must not end with me in regret.

Cheapskate mentality MUST be removed in order to go further in life. I do not want to save a penny to lose a dollar. In fact, I want to spend a penny now so that I can earn many times in the future.

The most interesting thing is this: Even though I spend more money, making myself and the people around me more happy, I actually save more too. It's amazing how the universe works. Freeing myself from the limited money mentality frees me to earn even more. Perhaps it's because I feel happier and that translates into more productive work and on and on. Seriously, I don't care how and why it works.

All this will not happen without valuing your time well. Know the value of your time and you will stop doing a lot of nonsense things and move aggressively into things that you value most. We all come into this world with an unknown expiration date - so make the best use out of it.

12 comments :

Patty said...

i always thought if i lock myself in shackles and bolt (mentally) in order to attain financial freedom, what will happen come the day when i truly attain freedom? will i be able to remove myself from these restraints? or will i continue living a miserable existence?

or perhaps it is better to live without those mental restraints, set higher ambitions and challenge myself to reach standards beyond my current capabilities?

Createwealth8888 said...

In Saturday, 7 March 2009, I posted this article:

http://createwealth8888.blogspot.com/2009/03/focusing-in-increasing-income.html

Congratulations! Never to late to realize it.

Anonymous said...

Hi LP & Patty, thanks for sharing!

I like to get best value for my purchases, usually with some waiting. I try not to get things in hurry. I enjoy the waiting time and looking around.. so time spent is not what I consider "wasted". Its wasted if I see good value for something I need and did not make purchase.

Then there is "need" and "want" which defines a person lifestyle. As long a person is at peace and happy with the lifestyle he choose, (based on his values at that time) its seem ok. if not, one will feel deprive & miserable for saving too much.

u're changing LP! Its abt mindset & value..

Take giving for example, Some ppl "give" to "invest" -- "give" so that the act of "giving" can generate better future returns.

While others "give" to have a good feel. or "give" because he
believes in 善有善报, which is a motive behind giving.

While others make sure he gives to those who could not be repaid back.

Unconditional Giving is not popular here, although I feel its important to cultivate that, esp. in the babes & children.

Food for thot

:http://www.spiritualwealth.com/2009/10/30/impatient-optimism-and-radical-generosity/

"Earn all you can
Save all you can
Give all you can" (John Wesley)

cheers!

HH

AK71 said...

Whatever we do, we must always be happy doing it. If we do not feel happy, something is wrong. That's what I always say. Not very complicated. We owe it to ourselves to be happy. :)

Createwealth8888 said...

Just don't follow Tiger Hoot's way of finding happiness should be OK

Anonymous said...

Hi LP,

Sorry to divert into "giving".

I always think you are generous with your time and sharing.. "giving" or "spending" is not all monetary, isn't it?

bro8888.. Indeed - short term euphoria, long term pain.

Pursuing happiness based on own std also can result in pain.

HH

la papillion said...

Hey pat,

Wat a nice way to put it. It's true, if the journey there had to be bounded by chains, upon reaching the destination there will be another effort to break those chains.

Very enlightening.

la papillion said...

Hi bro8888,

Haha, yup, never too late to realise it. I read your posts before, it must have helped me in shifting my mindset :)

la papillion said...

Hi HH,

Thanks for sharing with me :)

"Earn all you can
Save all you can
Give all you can" (John Wesley)

Hard to do the last part :)

la papillion said...

Hi AK,

Hard for me to make myself happy. Usually I place other people's happiness before me. Need to be a little more 'selfish' :)

PanzerGrenadier said...

Hi LP

The delicate balance between needs and wants. When I was young, I also swung towards being stingy and minimise spending.

Now that I'm a bit older and read of people dropping off at age 30 or younger, I balance by spending a little now and then.

Be well and prosper.

la papillion said...

Hi pg,

Likewise likewise, haha :)