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Spending Vs Saving - The fight for financial supremacy in one's personal finance

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@creativehive
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Hello Lions on the LeoFinance ecosystem! It's quite a good day to be alive and it's always a pleasure to see you view my post, I appreciate. Good evening!

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One subject that isn't taught in schools is how a man can spend or save his or her money. The subject matter of spending and saving is one everyone that wants to go far in his or her financial journey needs to take very seriously in life.

Spending one's hard earned money isn't bad on its own and you should know that it's a major factor in one's financial life, but the major challenge there is spending without earning or additional income that keeps more money for the spender to spend.

What is spending? Consumer spending is the total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy. Contemporary measures of consumer spending include all private purchases of durable goods, nondurable goods, and services. Consumer spending can be regarded as complementary to personal saving, investment spending, and production in an economy.

I'm truly in love with the above definition of spending and narrowing it to consumer spending helps this post a lot. A times people tend to spend on things that don't have reproductive values. Reproductive values here means spending on things that can produce other things. When we spend on unproductive venture it has several implications.

What are the implications of spending without saving? Spending without additional income stream(s) can be likened to drawing water from a dried well and expect the well or reservoir to produce water. The following are the implications of spending money without adding money to you account.

  • one of the implications of spending without saving is that the consequences isn't easily noticed immediately. This is so frightening because the damages must have been made before the individual realized the consequences. Being rich is everyone's dream but keeping to the rules is very difficult to keep. This means that it's very easy to spend than to save money and this is because the wants and needs of people grow or increases on a daily basis. A person from Nigeria might not know that one million naira had pass through his or her hands if they don't take stock of what they spend on a daily, weekly and monthly basis.

  • immediately money enters a person's hand truth be told, it's decision time for such an individual and the outcome of the decisions you take will determine whether it's good or bad. It becomes good when the money is used productively, but becomes a bad decision when the money is spent wastefully.

  • short term trends doesn't have long term benefits. Just imagine the fashionable clothes you bought 5 years ago are they still invoke today. Most things we pursue have short term benefits and most of them die once that trends is no longer the reigning trends. I want to buy the latest iphone and tomorrow Apples will introduce another latest iphone version and the one you bought two months ago becomes the old version. In my country, I can tell you that most young people who use iphone aren't the makers of such monies so they don't know the value of what they request from friends.

Solutions

  • take care of your spending habits. Your spending life should be based on certain shared percentages. What I mean here is that every income that enters your hand or account should be divided into savings, food, flexing (outing), and other needs. A certain percentage of one's income should go to savings, while others can be divided into other needs and wants. The savings helps the spender to plan his or her life and with the savings the spender might have other businesses or investments that'll bring more incomes to the family.
  • create long term plans that'll produce yield in the nearest future. It's very important we plan ahead because we don't know what's ahead of us. There are ventures we can dive into that'll be productive and profiting in the future.

https://punchng.com/your-spending-choices-have-financial-consequences/?amp

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