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  • Category: Miscellaneous

    Are we becoming penny wise and pound foolish

    Many of us are used to the luxuries of life and some of us certainly aspire for the same in the new urban world. We go bargain hunting, buy groceries at today's deal prices, travel with monthly passes, book holiday tickets or flights in advance, use discount vouchers when we buy or do transactions for day to day needs.

    Yet we (some of us) have two cars (EMI outflow), an apartment in an upscale neighbourhood ( EMI + maintenance outflow), have a good social life (expenses with luxury taxation outflow), good but expensive tastes ( alcohol, eating out at good restaurants, branded clothes and watches) which are priced at the higher end with good GST taxes). All this with the assurance that 'all is well' and holding a job in a changing world.

    So are we living beyond our means, are we becoming pennywise and pound foolish in our lives?
  • #611659

    There are many people in the world who fall in this category of - peny wise and pound foolish.
    What happens is when we go for expensive items we are impressed by the show rooms and the glittering world of show off and finally purchase those items at high prices even after substantial discounts. These discounts are false. They are only to attract the customers.
    Most interesting thing is we may not be in fact requiring that item but due to false prestige in society and friend circle we buy it.
    Anyway we do many such mistakes or rather blunders in our life and paradoxically do the opposite things while buying cheap items or paying small amounts to workers or car cleaning boys and many such petty items where we quarrel a lot for even a rupee. We do not believe in giving a small tip of 1-2 rupees to these casual child Labourers.

    So it is true that some people are like that and may be due to blind race of show off some are in the process of becoming like that.

    Thoughts exchanged is knowledge gained.

  • #611678
    There are many people who behave like this. A car or A TV we purchase once in a lifetime. So we will see that we should have a good one as it is not a one day or two days affair. So a little more cost also we will be tempted to go for it.
    Travel, groceries and bus travels are an everyday affair. On daily basis, if we count the expenditure how much we spend on those items is much higher than the amount we spend on a car. The only difference is we have pay out a huge amount a single time whereas for the other times less amount many times we spend.
    Our expenditure will be in proportion to our income and we should have some savings also.
    But as mentioned by the author we think many times and bargain much for a small item that too with a small vendor, but when we go to a restaurant we never hesitate to give Rs. 50/- tip to the supplier there. It is the prestige there. But a lady comes to our house with a basket on her head with fruits we will bargain with her for Rs.10/-. Really it is pennywise and pound foolish.

    always confident

  • #611689
    Yes, there are many people who live beyond their means. I have seen some youngsters changing cars every year, motorbikes in every six months and mobile phones in every quarter. The live life king-size but may have to die as pauper.

    The extravagance has become a habit for them. They would do well if they remember Warren Buffett: 'Chains of habit are too light to be felt until they are too heavy to be broken.'

    Beware! I question everything and everybody.

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