How often would you have seen a field Sales Executive, drawing a salary of INR 50k per month, using an iPhone, sporting a costly bike, wearing branded clothes and dining in expensive restaurants
You would often wonder – why is this person living beyond his means ; what if there are adverse situations , why doesn’t he save for a rainy day
As Morgan Housel wrote in The Psychology of Money, saving money is the gap between your ego and your income.
Often, we spend our money on things we don’t need, just to feed our ego. This comes in the way of our financial freedom and future options.
“Modern capitalism is a pro at two things: generating wealth and generating envy. Perhaps they go hand in hand; wanting to surpass your peers can be the fuel of hard work. But life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.”
Spending money to show people how much money you have is the fastest way to have less money.
Social media, influencers and retailers seem to conspire to create the illusion that we are not “normal” if we cannot afford a certain lifestyle
Rather, wealth is created by suppressing what you could buy today in order to have more stuff and more options in the future
What do you think?