Just Because You Can Afford it Doesn’t Mean You Should Buy It
Recently with the amount of money that has been pouring into the crypto space, I see many people becoming wealthier than they imagined, especially those from a younger generation. However despite of this, many people are going to throw almost all the money they made, away. Either through bad choices or buying expensive stuff they don’t need, that money is going to be eaten up. With how the media and culture we consume pushes a buy now, pay later mentality, I think it is very important for people to learn that just because you can afford something doesn’t mean you should buy it.
Every month it seems like another celebrity who was once a multimillionaire, even worth hundreds of millions or more, declare bankruptcy or are forced to sell off most of their assets. We live in a culture that values those who spend obscene amounts of money on nice things and people, especially younger people buy into it. Even in the bitcoin space we have watched many figures through the years go down in a ball of flames, when, if they had just sat back and threw their money in an index fund, would be living on a beach somewhere.
Despite what people actually believe, having nice things wont make you exceptionally happy. Have you ever bought something you really wanted to and then the appeal wears off after a week or so? This is the same thing that happens for rich people just on a much higher scale. There is a reason why so many people who are so wealthy turn to drugs in order to get them high. When you can suddenly buy anything you want, there is little to yearn and wish for. Buying everything wont fill the hole in your heart, in fact it probably will hurt you more than it helps.
If you truly want to create a life filled with wealth that is more than just material, take a job doing something you love, pay off your loans, live within your means and don’t buy everything just because you can. There is a time and a place to buy things you want and if you have the money and really want something, go ahead buy it, just know that its only an item. Youre better off purchasing something for functionality rather than status. Yes a Lamborghini may come with a ton of status, but functionally it is still just a car.
People who like you for the status you bring, aren’t exactly people you really want to be hanging out with anyway. Those who will be with you for the good and the bad times are your real friends, not the imposters who like you for your things. So I say this, no matter how cheap or expensive something is, weigh the value that it will bring to your life and whether or not that is worth it. If you decide an item is worth purchasing, go ahead, but beware buying something simply because you can.
Thanks to @Elyaque for the badges
Nice post! However, I do believe there is a difference if you made a lot of money being a celebrity or actor or if you made the money 'making money'. People that have made a lot of money on cryptocurrencies are in average very financial savvy individual, and I do not thing they are going to throw their money away like another Mike Tyson...
you would be suprised, many peope are still young kids in this space and kids make mistakes.
SO very true! Sadly, not that many people will read this and let it sink in... because money represents "glamour" and "lifestyle" to them... where it could so much more effectively be used as "long term security."
To some degree, I expect it's the classic "You value things about as much as you pay/work for them." truism. I often watch-- with sadness-- how someone might win a couple of million in some lottery or event... and in another couple of years they are broke. On the other hand, someone who worked their way to a million dollar bank balance... they tend to have something for the long run.
Crypto winners who go broke? Putting money into some "investment" that goes up 20x in a year or less, that's really more like a lottery winning than an actual investment. Doesn't surprise me it gets squandered.
I spend very little money on stuff like electronics, clothes or gadgets. I prefer spending money on my health, hobbies and travels or some workshops/ courses which maybe help im in self development. Also buying some crypto. So I think that currently investing in onself and crypto are the best way to spend your money. Also remeber to give some to charities or supporting those who doesn't have so much luck. What you give, comes back :)
Yeah definitely spend money on things that will make your life experience better no matter what happens and you wont regret it much. There are studies done that memories from experiences and travel outlast even the largest of purchases.
spending money on health and hobbies - TOP!
ironic , isnt it? we often buy stuff that damage our health and than spend more to recover)
Good blog @calaber24p
People have very different attitudes towards money and spending. When I studied media, I had a colleague who said he loves spending lots of money. A friend pointed out that this guy bought seriously overpriced iPhone. The same model was available for less elsewhere. The response was shocking to me. The colleague said that he prefers to overpay because he just likes the feeling of paying large amounts for something, regardless of its value. It left me speechless.
I am very much into low-cost living and self-sustainability. I love bargains and if something takes not much effort I prefer doing it myself over paying someone else for it. I prefer making things to buying things too.
Some people take a sense of power from spending. It makes them feel rich and therefore valued. It seems like a typical example of compensatory behaviour.
One thing I can relate to is the sense of empowerment that comes with wealth. I do not have a large budget, but I support different projects when it's possible. I love being able to do that, even if it's only on a small scale. It's incredibly rewarding. It's about having a tangible impact, creating visible change and being able to improve things for myself and others.
I have seen that same behavior @dana-varahi... people needlessly throwing money around because it "makes them feel important." It's very sad that someone can feel so completely DIS-empowered that they feel compelled to do that... I feel mostly sorry for them.
I know what you mean. The person I described didn't strike me as happy at all. I wouldn't want to be in their place.
I too am very interested into low cost living and life sustainability. I save almost every dollar I make that doesnt go to paying off loans just so I can retire early and enjoy myself. I could afford a laptop 10x the price, but I use a $300 one until it breaks.
This is pure wisdom!
@calaber24p I agree with the article. I really wish more kids learned about financial discipline growing up. I think Rich Dad Poor Dad should be required reading before Scarlett Letter.
Money is such an emotional process. Such as I grew up where if my Mom spent money on me she would be yelled at. I've found it is tough to spend money on me but easy to save and invest. There are emotional problems with that as well if it goes to an extreme.
We need to bring our children up understanding priorities so they are balanced and make good choices.
Yes, if you read the book Rich Dad Poor Dad, you'll learn a lot about financial literacy. I learned a lot and I'd highly recommend it to anyone!
I agree I enjoyed that book as well. Living below your means is the most important thing.
I agree with you 100%. Why not just put it into safe investments after a certain point if you want to retire and be comfortable?
Keeping up with the joneses ;)
I would like to buy this post.
i would like to buy your comment ? possible? :)
Anything is possible in this crazy world!
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