A person I was talking to is currently trying to maintain a budget by not spending money on unnecessary things as a way to make up for a past few months of mismanaging his money which has caused him to be in a tight financial situation. While it looked like he was doing an okay job, suddenly he spent hundreds of dollars on an electronic product that he didnâ€™t need and said that it was a good deal. As a result, this dropped his savings to under $300.
I then asked why he would do that as one must be putting themselves through so much psychological stress as well by not having a lot of money in general while also not really having any incase of an emergency. While he knows it is bad, he mentioned that he mainly did it as well because itâ€™s not like he has absolutely nothing left and that he can still survive, so it shouldnâ€™t be that big of a deal as of now.
I personally think that way of thinking when it comes to money is dangerous as this is assuming that nothing will ever change and that the world stands still. That is actually very common Iâ€™d say too as for many they worry about just getting by at that moment as oppose to seeing it in a different way such as seeing how much they are losing by not doing something.
It kind of reminds of stories that I used to hear as a kid from teachers about saving and planning. Example, in the summer time you had two people with a farm and one person just kept growing/harvesting enough food for his day, which seemed easier and more relaxing, while the other person stocked up more and even stored them for future use such as placing them in jars. I guess you know how the story turns out when it came to the winter time as both of them couldnâ€™t harvest anymore food.
As always, always think ahead and make decisions not just based on that one moment.