By Irshad Mushtaq
Have you ever thought about how much we spend when we go out? It’s not uncommon for us to splurge on luxurious treats like fancy cakes and juice boxes, adding up costs that can easily exceed 3,000 to 5,000. While it’s fine to indulge once in a while, we often overlook the true value of these items. After all, most of these treats are temporary pleasures; they expire quickly and can sometimes end up in the trash or even fed to animals.
Let’s take a moment to reflect on gifting practices from the past. Remember the tradition of giving coins or gold? Those gifts had intrinsic value, appreciating over time. Today, however, we often invest our wealth into things like houses, which can take up 80% or even 100% of our net worth. It’s a common belief that buying a home is a wise investment. But the reality is that many of us are tying up our money in what isn’t necessarily a valuable asset.
Purchasing a house might feel like a solid step, yet we need to recognize that buildings often don’t appreciate in value as we hope. For many, it’s not until a decade later that any real increase in value is seen, and even then, it may just keep pace with inflation. This means we often find ourselves in a position where we’ve invested a significant percentage of our net worth into something that doesn’t yield high returns.
Instead of making hasty financial decisions, we should focus on buying only what we truly need. The great Warren Buffett once said that true wealth comes not from what you earn, but from what you wisely invest. Creating a mindset shaped by understanding, saving, and investing can lead us to more sustainable and meaningful financial health.
Good health is paramount, and when you are in a good place healthwise, it becomes so much easier to manage your finances and make sound decisions. Let’s strive to develop a balanced perspective on spending and investing. By practicing financial wisdom, we can enhance our lives, ensure a more secure future, and ultimately find joy in what truly matters.
- Learn from the insights of @Irshad Mushtaq, Writer, Investor, Entrepreneur & Founder of M I Securities! Connect for valuable financial advice at [email protected]
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