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  • Category: Miscellaneous

    Do you encourage unnecessary spending?

    During my childhood my father used to always tell me that we should always save minimum 10% of our income. We should not take any loans. He always used to advice me that unnecessary expenditure shouldn't be incurred. I think I got accustomed to that type of living only. But these the concept is changed. No one will hesitate to take loans. For every purchase we have different avenues to get loans. The concept of saving is almost last. No one will hesitate to purchase anything they want whatever may be the cost. If we try to explain the concept of saving to young people these days many of them will laugh at us.
    What are the views of the members on this issue. Do you encourage unnecessary expenditure.
  • #653108
    There are two mistakes in the above. I am not able to edit them as edit button is not working on my mobile.
    In the fourth line after"But these" , " days " word is to be added.
    In the sixth line the word "last" is to be changed to "lost".
    I regret the mistake.

    drrao
    always confident

  • #653109
    This depends upon the economical situation or the financial condition of any individual. If the same is found to be into comfortable zone than few additional expenses can also be added onto the routine expenses or else the expenses gets automatically adjusted within it. It's good to inform that that in my family members no one is in a habit of going ahead with the extra expenses but whatever is there is within the limit & within the comfort zone.

  • #653115
    There was a time when most of the people were very particular about their spendings and did not spend a penny more than necessary.

    Now the modern age is bringing a new culture. People are spending more than they can afford. This is a good news for the business and commercial world but not healthy for the finances of the individual. Of course rich people have always have an option of spending more or less.

    Personally I belong to the earlier category and firmly believe that unnecessary spending is the root of many problems.

    Knowledge is power.

  • #653118
    Spending lavish is always danger to any type of people. Now that people especially youngsters do discard the items stored by elders in the house and buy similar items by their own. This is just waste of purchase. Similarly in olden days elders storing the needy food items only for an year but very clear in buying unwanted items. As everything nowadays available in nearby shops or super markets, it is needless to unnecessarily buy the things over and above required.

  • #653122
    The really rich people are not spendthrift. They are firm believers of simple living and may or may not of high thinking. We may try to emulate the lifestyle of Warren Buffett, the second-richest person of the world and known as the "Oracle of Omaha". He lives an unbelievably simple life and invests the money wisely. He does it not for himself, but for his investors. Same is applicable for Bill Gates or Rakesh Jhumjhunwala.

    We may remember the following quote of Britt Ekland: "Think of your pension and start saving. Like my father, I am a spendthrift, and I regret that".

    So, start saving now and don't regret in future. Further, take a loan only to create an asset or in extreme emergencies and not for sundry and fashionable gadgets.

    Beware! I question everything and everybody.

  • #653136
    Spending extra money is not advisable for anyone. I am also in favour of the same. These days youngsters don't hesitate to take loans on anything. In my opinion, taking a housing loan is okay as purchasing a house without a loan is very difficult due to high rates. Whereas loans on other things can be avoided. My father also advised me never to take a loan in any case.
    Sanjeev

    " It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

  • #653138
    I do not encourage unnecessary expenditure. It's true that many people have the tendency to purchase anything they like and ultimately end up in a huge debt trap. Times have changed and the outlook of many people have changed.

    Recently, during a discussion with one of my friends, I got to know that how difficult the situation became since he has to pay a large chunk of his salary to repay the loans. The present job scenario is not encouraging at all and many people who had taken huge loans are in serious trouble.

    Actually the requirement analysis is always essential and nobody should go for things beyond their financial capacity. The lucrative loan offers by different finance companies make the youngsters tempted and many times they end up repenting. Following a simple living standard is the best approach and those who maintain it do not have to worry regarding financial problems in future.

    Sankalan

    "Life is easier when you enjoy what you do"

  • #653140
    Dr Rao,
    Don't you think that spending money is good for the economy? Money circulation drive the market.
    But, I'll restrict my spending because I know the value of money!

  • #653143
    Neeraj,
    I never said that we should not spend money. I know that money circulation is good for economy. I say that unnecessary spending and not saving money are not good. Taking loans is also not advisable. You are doing good by restricting your expenditure.

    drrao
    always confident


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