I do talk about saving money and it’s importance all the time but I never recommend being obsessed with savings and investments. Saving and Investment money is important to accomplish your goal of getting rich and living a prosperous debt free life but being obsessed with saving ruins almost everything. When I talk about saving and investing your saved money to increase your wealth, it is to lead a luxurious life, a life of your dreams and not to live frugally throughout your life. If you never spend anything, then what is the point of getting rich?

Spending Money Is Important

I believe that spending is as important as saving and investing. I invest from the age of 17 because I want to get rich, not just to see my net worth increasing but to see myself living a luxurious life and yet have net worth to be proud of. All of us dream to become rich, drive a sports car, live in a huge bungalow but not many of us do things to accomplish our goals. Some people would never save anything and some people save everything, well both ways you fail to live up to your dreams.

I know several people as of date who are living frugally even when they have so much money. They can afford a Mercedes but yet they drive a Maruti 800. They say that they cannot afford to spend so much money and they like to live that way. They cause drama and whine like anything if something wrong happens and they have to spend some money to fix it. They will try every possibility to get the thing done/repaired for cheaper because they cannot see a lot of money being spent. I really don’t understand such people. If you never wanted to spend anything anywhere, then why did you want to get rich? They really don’t understand that they cannot take all that money up with them after they end their life.

So Why Save Money? Just Spend Everything

No! Saving money is important to keep the wealth growing day by day. The more the money generated today means the more the money spending tomorrow. The idea is to earn so much money that you will get confused where to spend. Living a rich and luxury life costs a lot, to cater to those needs, one must make sure they invest a lot as early in their life. That way you can guarantee that you spend a lot yet be very rich. We don’t want to spend everything we have, but we want to spend enough to live up to our dreams and yet call ourselves rich as per net worth.

Balance Between Spending and Saving

To cater to your needs of being rich in future as well as living a decent life, it is very important that you try and create a balance between your spending and saving. In the beginning of your earning carrier, spend less and save more, and slowly as you age, increase your spending and lower your saving. As years pass, you will have saved enough to keep the wealth growing on its own, so a little bit more spending does not harm at all. As per your personal needs, you have to create a financial plan that balances your spending and saving. Keep reviewing the plan each year and make changes to suit yourself.

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1. Excuses For Not Saving
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3. Why Do We Save Money?
4. Track Your Expenses
5. Benefits Of Investing Early