There is an old saying “A fool and his money are easily parted”. This saying is indeed true. Earning money is a bit difficult and it does involve hard work but retaining the money that one has earned and maintaining the constant flow of that money is far more difficult.
For instance, any individual might earn a billion of dollars through a lottery and a jackpot. Instead of using the money wisely like starting a new business or investing in valuable things such as property or jewelry with the help of the money, individuals waste the money by going for expensive trips and buying fancy clothes. Instead, they should invest money in a way that they get returns out of the money instead of spending it lavishly on useless items.
Spending money intelligently is what is extremely essential if one is interested in sticking with money throughout his or her life. We find a number of people with huge sums of money but very few are there who have the ability and intelligence to spend their money wisely. Now the question that arises is how an individual can spend his or her own money intelligently.
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In the first place it is essential for each and every individual to understand the difference between having a perfect wardrobe and a wardrobe in which most of the items and useless. People who do not plan their wardrobe requirements end up buying each and every item which catches their attention without understanding whether that item will be of use for them or not. The youngsters especially should understand this fact.
Next, it is important to understand that just to fulfill your fantasy of having that dream yacht or your dream Porsche is not enough. Even if you have money, you should understand that the after expenses on the maintenance of these items cost far more than their cost price. Buying a painting worth crores is worth only if you actually have that much money in excess. Otherwise taking any such fancy item on loan is acting foolish.
Peer pressure is something that can part an individual from his or her money. Just showing off your money has become a trend among most of the friend circles. You can have a meal for four at a normal restaurant instead of a five-star hotel if you are running out of budget. You are definitely a fool if you give more importance to show-off rather than your peace of mind.
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Money will definitely leave you if you spend it without giving a second thought. It is essential to make a few back up plans like life insurance plans, fixed deposits so that you have ample amount of money in times of emergency. Being a little cautious about money helps greatly extend if you want the stick with it forever. The choice is simply yours.