How to be poor...
If we don’t have savings we can get caught dry and end up asking other people’s help
Published: 04:05 PM,May 08,2023 | EDITED : 08:05 PM,May 08,2023
A young friend sat for a conversation and he said I should write about how to be poor.
Why would that be interesting, I asked him.
He said that there are certain reasons why people remain poor.
Being Millennial is a whole different game. There is a rush to see a new direction because they want to be different from all other generations. It is not that they want, they are different.
The baby boomers are still active in many ways even while some might be thinking of retiring and they have been comfortable. The general consensus is that the younger generation have not been able to be as comfortable as the baby boomers.
So, my friend who is a millennial continued, some people spend the whole salary the same month and wait for next month’s salary with zero balance and anxious for the next salary. They live from one month to another month. There is no space for saving.
He said this lifestyle can make you poor. First of all you have to separate the needs and the desires. Food, medicine, needs of the child and there are basic necessities to be met with such as water and electricity, and these are the needs. The desire list has eating out, cinema, travelling, catching up with trends and fashion and so on. Once we separate this and finish the list of needs we can think of desires, he said. But the most important aspect is not to finish all the salary.
At least saving 20 per cent of the salary is a need so that you can invest or save. Whether you are getting RO 1,000 and another has RO 5,000 but if both parties are spending without saving, by the end of the month they are in the same boat.
If we don’t have savings we can get caught dry and end up asking other people’s help. Instead experts say we must have at least six months salary in savings so it would take care of us during the lean days. On the other hand if the job security is on then this is the amount to invest.
Conspicuous consumption, he said, is on the rise and it is just to impress others. It has always been there to an extend I interrupted, but maybe more now, I reflected.
The current generation is consumption oriented because you take them to the mall to buy them something new they are excited but are not the same if you take them to visit someone such as their grandmother, he noted. Maybe it is time to look for experiences. The feeling of retail therapy is short lived.
It is not easy to be wealthy, he noted.
But experts also say it is not about just keeping money saved. The best situation is when money is making money. And for that we need to invest.
He said he does not advise to do investment unless they have a talent for it, and if you are going to leave it for others to do it, you will end up losing it.
I took a moment to reflect as it is the same case with young entrepreneurs too. We fail to take a salary and before we know we are too burned out. Because by nature we want something in return and especially financial independence.
Family businesses are good in the sense because there are group of people who can share the responsibilities.
Working for someone or an organisation guarantee salaries and provides a sense of security.
As for being an entrepreneur, he said, not everyone is meant for it as there are risks involved.
End of the day one has to know what they want out of their life. An education would mean learning to observe all these factors too.
Sometimes it is okay to be calculating in life because living is not just about moments but also about counting. On the other hand it is important to create memories other than gathering collectibles. The long lasting memories are the ones with best of experiences. Most important experiences are with people. It need not be in the fanciest coffee shops but just at home. Time does not wait, when they are gone they are gone.
If you know how to be poor then you would know how to avoid it.
Why would that be interesting, I asked him.
He said that there are certain reasons why people remain poor.
Being Millennial is a whole different game. There is a rush to see a new direction because they want to be different from all other generations. It is not that they want, they are different.
The baby boomers are still active in many ways even while some might be thinking of retiring and they have been comfortable. The general consensus is that the younger generation have not been able to be as comfortable as the baby boomers.
So, my friend who is a millennial continued, some people spend the whole salary the same month and wait for next month’s salary with zero balance and anxious for the next salary. They live from one month to another month. There is no space for saving.
He said this lifestyle can make you poor. First of all you have to separate the needs and the desires. Food, medicine, needs of the child and there are basic necessities to be met with such as water and electricity, and these are the needs. The desire list has eating out, cinema, travelling, catching up with trends and fashion and so on. Once we separate this and finish the list of needs we can think of desires, he said. But the most important aspect is not to finish all the salary.
At least saving 20 per cent of the salary is a need so that you can invest or save. Whether you are getting RO 1,000 and another has RO 5,000 but if both parties are spending without saving, by the end of the month they are in the same boat.
If we don’t have savings we can get caught dry and end up asking other people’s help. Instead experts say we must have at least six months salary in savings so it would take care of us during the lean days. On the other hand if the job security is on then this is the amount to invest.
Conspicuous consumption, he said, is on the rise and it is just to impress others. It has always been there to an extend I interrupted, but maybe more now, I reflected.
The current generation is consumption oriented because you take them to the mall to buy them something new they are excited but are not the same if you take them to visit someone such as their grandmother, he noted. Maybe it is time to look for experiences. The feeling of retail therapy is short lived.
It is not easy to be wealthy, he noted.
But experts also say it is not about just keeping money saved. The best situation is when money is making money. And for that we need to invest.
He said he does not advise to do investment unless they have a talent for it, and if you are going to leave it for others to do it, you will end up losing it.
I took a moment to reflect as it is the same case with young entrepreneurs too. We fail to take a salary and before we know we are too burned out. Because by nature we want something in return and especially financial independence.
Family businesses are good in the sense because there are group of people who can share the responsibilities.
Working for someone or an organisation guarantee salaries and provides a sense of security.
As for being an entrepreneur, he said, not everyone is meant for it as there are risks involved.
End of the day one has to know what they want out of their life. An education would mean learning to observe all these factors too.
Sometimes it is okay to be calculating in life because living is not just about moments but also about counting. On the other hand it is important to create memories other than gathering collectibles. The long lasting memories are the ones with best of experiences. Most important experiences are with people. It need not be in the fanciest coffee shops but just at home. Time does not wait, when they are gone they are gone.
If you know how to be poor then you would know how to avoid it.