Nowadays some posts are making rounds on social media platforms where some comparison has been made between two things. The first one is the product of the company and the second one is its current stock value.
The comparison states that: If in past you had consumed the product manufactured by that company instead of investing the same money into the stock of that company, how much wealth you have missed to generate. Instead, if you had been invested the same amount in the stock of that company then great wealth would have been created in the long run instead of wasting the capital in consumption. .
Is the comparison is really worth it? Can we ever compare need-based consumption with investment? One can compare splurging of money with investment instead, but not need-based consumption.
When we understand the difference between NEED and WANT and when we follow the basics of financial planning, we never get tempted to waste our money on instant gratification and then repent for not investing the same for fulfilling our financial goals.
Consumer Expenditure is spending we usually do for living life. This Expenditure can be
- Basic spending done for satisfying our basic needs food, clothes, shelter, education,transport and basic entertainment.
- Second type of expenditure can be lifestyle expenditure. Lifestyle is a way of life established by society, culture, group or individual. This includes patterns of behavior, interaction, consumption, work, activity and interests that describe how a person spends their time. The scale of Lifestyle keeps on increasing day by day. And we try to keep pace with this new lifestyle. Nowadays under the name of Lifestyle Expenses, we keep on spending on unnecessary things. We think these expenses are mandatory to keep our Status intact.
Both types of spending are called consumption spending which is done to live life in a better way.
One has to have a fine balance with TODAY and TOMORROW. Both these times are important. Today enriches us with experiences, joy, liveliness, and pleasure needed to keep ongoing. Tomorrow gives us hope, makes us a better person, and promises a better future than the present.
Once you set up a goal-based investment plan and start investing towards it in discipline then you should not worry about your expenses. Life is to live, enjoy and get different experiences. So first save but then surely spend to enjoy life and get lifetime experiences.
Life is always full of if and but or this or that. If we take a well-informed decision while considering all the prevailing options available then just own the decision and move on.
“Opportunities come and go in the share market but regret and guilt keep on haunting you if you do not move on”