• Saturday, March 02, 2024
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BusinessDay

Mastering the art of spending money

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Money is the most sought after commodity in the world today. Everyone needs it for what they can exchange it for – be it goods, services, needs, wants or ideas. We live in an inter-dependent world where we rely on one another to provide what we cannot produce by ourselves. We therefore need to spend money by giving it in exchange for what we want.

Spending is an area where most people come up short on the road to wealth and fortune. They fail to understand that there is an art to it. The rich spend and still have plenty leftover, while the poor spend and have nothing left. Those who have mastered the art of spending normally base their spending decisions on one or more of the guidelines below:

Firstly, most people believe money is meant to be spent. Rather money is meant to be multiplied. Those who have mastered the art of spending disburse a major chunk of their money on things that can be multiplied into more wealth while most others spend on what can’t produce, hence they lack as a result.

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Those who have mastered the art of spending expend money on their needs, not wants. Needs are those things you cannot do without while wants are the opposite. They constantly ask themselves – Do I need it? Do I want it? Then, they act to spend on what they need. This frees up funds that could have been frittered away on wants that could be diverted to better uses.

Thirdly, they stop carrying substantial sums of money around! Money in your possession literally calls out to be spent. This is why you find people who do not have an intention to spend but carry it around eventually end up spending on their wants. Those who have mastered the art know it is wisdom to leave money at home, or at best carry very small sums.

Wise spenders fully understand that nothing you purchase can make you happy forever. Your happiness or otherwise should not be dependent on possessions. If this is so what would you do when a better and improved model of your possession arrives? Feelings towards your possessions can and will change.

They don’t buy anything without checking several sources for the best price and if possible asking for a discount. It is foolhardy and incautious to purchase without checking several sources for the most affordable rates. This is a way of life for those who have mastered the art of spending.

Sixthly, they aren’t rash and in a hurry to spend. They don’t buy things on a whim! Scrutiny, analysis and justification of their intended purchase drive their action.

Lastly, those who have mastered the art of spending plan and budget before they spend. They look at their scale of needs and prioritise their spending. They expend from available resources instead of incurring unnecessary debts using credit.

Being rich and wealthy implies having more than enough to meet all of one’s needs, wants, desires, goals and aspirations. Very few will ever attain this height. Those who get there are careful and wise spenders, especially at the early stages. Those who have mastered the art of spending do not spend more than they make, and do not spend all that they make! Wise and creative spenders make wealth!

Kenneth Doghudje