Spend More to Earn More
- Punit Gogri
- Aug 1, 2022
- 2 min read
Updated: Aug 3, 2022
Hey guys, Punit here,
We have always heard, “If you want to be rich, then work hard and save more money.”
Well, I would like to give you a different approach
Spend more to earn more!
Saving money means wasting money.
We all know about inflation, right? In 2008 a McAloo Tikki burger was available for Rs. 15-20, but now the same is available for Rs 45-50. Did the burger get better, or did it start giving more utility? No, but the value of a rupee went down. This is inflation.
But where to spend it exactly?
A famous author Robert Toru Kiyosaki said,
“Do not spend your money on buying Liabilities, rather spend it on buying Assets. A rich person buys assets, and a poor person buys liabilities. Hence the rich get richer, and the poor get poorer”
Liabilities means those expenses or things that reduce their value overtime or take money out of your pocket and Assets are those expenses or things that increase their value over time or put money into your pocket. I know this is not exactly what you were taught but consider it for just the sake of understanding.
For Example,
I bought a Starbucks Coffee today and tomorrow I’ll flush my coffee along with my money.
I bought a new car, and I started driving it, I just drove 10m out of the showroom, and the value of that car decreased 10-20%.
On the other end, you can spend your money on capital expenses which will create assets for you.
E.g., You can learn a new skill, which can give you 10x or 100x returns on your investments in future if you can monetize it. In this world of the internet, you can learn any skill for free or any nominal charges like Rs. 500 to Rs. 1000.
You can buy an old car for a much lesser price and give it on rent to some ola / uber driver.
Warren Buffets once quoted,
“If can’t earn money while you sleep, you will have to work until you die”
Instead of reducing your expenses, you should focus on optimizing them. Invest your money wisely.
I will see you in my next blog.
Thank You!
Worthy enough to talk about "spend more to earn more" for a layman this seems like words in Spanish as this is exactly opposite of what Indian households had ever taught us..but honestly when it comes to perspective view this should become a next gen approach as it helps us with our finances. Something always taught in schools are the financial systems and something never taught is the financial approach and financial education, we are taught to earn but not to manage, which leads millionaires even into debt traps, ironically the finest earners are the worst sufferers as they didn't know to manage finance. Its important for us to learn to earn but more importantly to learn to manage earnings!
Simple advice yet worth millions.Optimising is important whether in a phone or computer or even expenses .A person never owns money it's his or Her turn to spend it. So one should spend it wisely.It's true if you spend more, then you will push yourself to earn more. That's the reason why USA is rich as their citizens are materialistic. On the other hand we know Indians and their saving habits.People have different mindsets .Money has in a way controlled our life these days. But we must also keep in mind that revenue expenses are also equally important to enjoy our life.
Our generation really need to know more about investment and wisely using our money instead of just wasting it just for the sake of popularity show off. We really need to question ourselves before making a purchase. These small things are going to help us to achieve big in future.