Sunday, April 15, 2012

Don’t just spend on your “needs” and ignore your “wants”!

In a few of my posts, I have always mentioned the following three steps for achieving financial freedom:
Step 1: Learn how to earn money.
Step 2: Learn how to save money.
Step 3: Learn how to grow money.

In order to achieve step 2 with maximum results, one may just spend only on the “needs” and totally don’t spend on the “wants”. However by doing that, one life may be miserable and boring. It is because there is nothing to look forward to since the “needs” are not going to change much in life.

To prevent myself from leading to such a boring life, I always cater a sum of money each year to be spent on my “want”. By allocating a fix sum of money will prevent me from overspending. This sum of money can be used for holiday trips, buying gadgets and gift for my love ones.

My advice is to all is never be a miser. Money that is not spent is not yours and will have no meaning to your life.

1 comment:

Temperament said...

Well put. We all should have something to look forward in life besides money.

Have you started your journey towards financial freedom?

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