Hello Grasshoppa,
In today’s society, we tend to consider people that drive luxury cars or having expensive watches rich, but are they really as rich as they portray themselves to be? I remembered many years back when my friend bought himself a new Honda Civic but as I know, his salary was around RM3,500. Estimated Honda Civic monthly repayment is around RM1,800 back then excluding the road tax & yearly car maintenance.
Society’s pressure and temptations of having finer things in life do put us in a situation where we want to buy those things despite struggling to afford it. Back then, my temptation of wanting to buy a bigger car led me to the showroom & I was very close to making the purchase for Mitsubishi Lancer but thankfully my loan was rejected due to my young age & existing debts. I remembered the salesman even asked me for a guarantor to help strengthen my loan application.
This has been a common sight in today’s society. Do society’s standards and temptations affect your view on money & life? Is it affecting your savings or your plans to save more? Is it creating a situation where you are having credit card debts or unable to cope with your debts?
Below is an example that I am sharing so you can have a better view on the difference between how two individuals handle their money & how will that affect their financials.
Based on the 2 individuals, Ahmad has a higher salary compared to Ali but with his spending habits, his monthly balance is lower than Ali. Looking at how both individuals handle their money, Ahmad spends his money on a more expensive house, expensive car, eating out all the time & allocating RM1000 for his shopping expenses. The calculation that I have used for Ahmad is based on an RM600,000 house, Honda Civic & an average of RM50 per day on meals for 30 days. For Ali, it is based on a RM300,000 house, Perodua Bezza & an average RM20 per day on meals for 30 days. With better financial planning, Ahmad should able to save more compared to Ali but based on the above scenario, however, it seems that Ali is able to save more.
Generally speaking, this happens in our lives where we see people surrounding us owning the best cars, branded goods & many more. Does that mean they are richer than you or perhaps you have better financial planning? We always have the perception that the higher your salary is, the richer you are. Is that how it is supposed to be or is it about how well you manage your money? It is not about chasing the highest salary or earning more money. It is about managing your money in a situation where you can save while enjoying your life.
Your next question is, how do I save & enjoy life? It sounds almost impossible for some of us but it is not really that hard. The one & only tip is to save before you spend. Is it that hard? You may read my previous post on 4 Effective Ways To Save Money From Your Daily & Monthly Spending. I’ve been using the same method to save money for a few years & it is extremely effective as long as you are disciplined with the plan. With the money-saving plan, does that mean that you cant’ buy the luxury item you’ve been eyeing on or holiday you are aiming for? No, you can still enjoy your life as long as you are consistent with your savings & manage your money wisely.
OSS!
