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MOGR: Don’t Be Penny-Wise and Pound-Foolish. It Isn’t Worth It.
By Steve | March 26, 2008
I have observed that wealthy people did not indulge in small pleasures and small economies.
The right thing to do is to go ahead and live comfortably; set aside a certain amount to pamper yourself. This mindset is confirmed by T. Harv’s Jar Money Management concept where he suggested putting aside 10% for a PLAY account.
Don’t get me wrong. Warren Buffett’s being rich and living simply does not mean he lived poorly. If you need to spend, do so. T. Harv’s Jar Management concept discusses putting aside money with discipline. What successfully rich people do is be consistent and stay away from drugs, alcohol, gambling, and stuff that can suddenly suck their money away.
Trying to make scrimp too much in order to become prosperous is doomed to failure. It won’t make you rich, but it will make you miserable. It is not a great way to start your day when you are miserable. You need decent meals, decent clothes, a car to transport you and your family, and most important, a positive attitude. In the movie “The Secret,” the Law of Attraction is about having positive thoughts and feelings.
Hang on here - doesn’t the teaching from T. Harv Eker’s Millionaire Mindset say that we should spend a little less on pleasure such as taking a budget holiday while we are in the process of getting our finances in order? Once these are in order, we can then work on getting rich. And getting rich doesn’t mean you have to scrimp your way through. Saving money is important, but earning money is MORE important. Wealthy people do not scrimp and save. Surely some of them are overly restrained with their spending and you need to use a crowbar to open their wallets. But while they may be prudent about their big purchases, they don’t buy cheap coffee and jam in the hopes that these acts of economizing can substantially add to their wealth.
I have seen here in my country that people buy luxury cars and houses, yet they cannot even afford a Starbucks coffee every morning to indulge in. They live hand-to-mouth. This is dangerous and is the wrong way of ‘saving’ your money.
What’s important is for you to ask yourself whether you really need that Benz, those big houses, or that fourth or fifth Rolex watch.
Save, by all means, for all those big purchases, but perhaps you should take stock of your lifestyle and ask yourself if you really need them. Don’t think that giving up those little pleasures and those little luxuries which enhance your life will increase your wealth. A mindset of escaping from penury is probably one of the keys to success and paths to prosperity. When you’re on a diet, for instance - if you deny yourself every small pleasure (i.e., your favorite food), you’ll most likely fail. Little pleasures are the way forward.
Read about the Jar Money Management System, or buy a copy of the Secret of the Millionaire Mindset to understand how you can manage your money well without having to scrimp along the way. T. Harv’s concept is a proven system to do just that.
Topics: Category00: Mindsets of Getting Rich - MOGR |
March 26th, 2008 at 8:41 pm
Great tip, enjoy life today while saving/investing for the future. Don’t be an Uncle Scrooge. — Jeff Rivera (Author of FOREVER MY LADY - Warner Books)
April 8th, 2008 at 2:31 am
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April 10th, 2008 at 8:22 am
I have a friend who was nitpicking on whether to buy a pack of berries that cost 20 cents more or the other one. Afterwards, she spent $25 on a bottle of wine in a restaurant which she could have bought and had at home for $14.
The worst thing is, when I brought this up, she thought she was completely logical.