I’m quite a calculative and thrifty person – even though I’m the only one in the family who is not from banking or accounting background. When I mean calculative and thrifty, I don’t mean calculating every single cent or chasing after people just because they owe me 20 cent. What I mean is, I tend to save money more than spending them. Oh, and I tend to brainwash myself into not buying something I really wanted.

There are times when I would spend months just to decide whether I should buy a particular item – the more expensive it is, the longer I will take. For example, the new laptop that I bought took me a whole 6 months to think about it – how much do I need to pay every month, do I really need it, what are the things I want to use it for, is there any cheaper option, bla bla bla. Yes, that is the type of person I am (but funnily, I don’t mind spending money on my family).

Sometimes, my parents feel both happy and sad after seeing me like this. Happy because I’m a financially conscious person and know how to manage my money well …sad because I’m reluctant to buy something which I really wanted (I don’t really have many WANTs).

Then one day, my dad told me a story about his friend. This friend of his is a very nice guy but just like me, he is also a pretty thrifty person. He would only spend when there’s really a need to do so. Otherwise, he would normally convince himself that he did not need it. In case you’re wondering, he’s actually quite rich. Few years ago, this guy was admitted to hospital due to cancer. Fortunately, he has recovered but the experience has completely changed his life. Nowadays, he still manage his money wisely but he is willing to buy the things that he wants.

After sharing with me that story, my dad said that it is good to spend wisely and even better if I don’t have too many WANTs (a lot of young people nowadays have too many WANTs that their credit cards could not accommodate). But life is short, and we should pamper ourselves once in a while by buying the things that we want. And there’s no need to justify every single thing. If you want something, can afford it and it won’t jeopardize your financial condition, then just buy it. Just be sure to utilize and cherish that thing after that.

Thinking about the story my dad told me and the advice he gave me, I feel that it is true. Life is short and unpredictable. If we don’t pamper ourselves now, when do we plan to do that?

Save for the future, but also use some money to pamper yourselves. We only live once after all.

p/s….Well, I’m not asking you to become like those people who have unlimited WANTs though….those are pretty unhealthy habits.

The saying “money is the root of all evil” has been around for ages now….maybe even longer than my 27 years in this world. But whenever I hear someone says this, I really start to wonder “is money really the root of all evil…or is it our own greed?”

Why do people want more and more money in the first place? Some, to survive. But for many others, to buy whatever they want and to achieve their dreams. But what if we are already content with what we have and don’t need new cars, houses, gadgets, or anything new for that matter? And what if we can actually survive for long term even without that unlimited supply of money?

Will we still want more money? And if there’s no need for extra money, will people resort to not-so-nice activities including hurting other people (robberies, extortions, etc)? Will people still say money is the root of all evil?

To be honest, I believe that if everyone can be content with what they have and occasionally spend some money to reward yourselves……the thirst for money will not be that strong. Because you won’t have much use for that much money anyway.

But if you are not content with what you have, and are always waiting to become rich (millionaire type of rich)…..then I can only say good luck to you. Just remember that if you don’t control your greediness, it will definitely bring you down one day.

Conclusion? To me, money is not the root of all evil but our own greediness is.

Note: and if you’re telling me that you want more money so that you can live happily. Then I can tell you, money may and may not bring you the happiness you want. But most likely, it won’t help much. As usual, it is easier for us to look “outside” for a way to make ourselves happy……..and not “inside”.

p/s….. to certain people who are already rich. Money is never a problem to them. But they will look elsewhere to fulfill the greediness within them. Seek for higher position, more power, more control, etc. All these can be considered as behaviors which are supposed to fuel their greediness.

Everyone has their own priorities when it comes to spending their hard-earned money. Some people spend on toys for kids, some people spend on games, some gadgets, some cosmetics, etc. Honestly, there’s no right or wrong since it’s personal preferences even though we still get to hear pretty often things like “Aiyo, why are you spending so much on such gadgets?” or “See? Spending 40k to go to Timbuktu, such a waste of money”, etc.

Louis Vuitton (LV) bags

But to me, we will never understand why people spend on those things unless we are in their shoes. Guys will never understand why girls spend so much on cosmetics and fashion stuff (LV bags…omg… =_= so freaking expensive bags). And girls will never understand why guys love gadgets so much.

So the next time you want to comment on other people for spending a lot on something that doesn’t make sense to you…..think again. It might not make sense to you….just like the things you buy don’t seem to make sense to other people.

I think in the end, the most important thing is for you to know what you are spending on and your own priorities especially during recession period. Is the thing you buying really worth it? Can you live and enjoy life WITHOUT it? Will the value depreciate a lot after you’ve bought it? Ask yourselves such questions and hopefully the answers will be able to help you in making the right decision.

P/S… by the way, I don’t know how much it cost to go to Timbuktu. I assume you’ll need at least 40k in order to come back alive.

Last week, I talked about Malaysians’ tendency to spend a lot during sales in “Have more promotions and Malaysians will buy from you“. Guess what, it’s true. Check this article from The Star Online – Poll: Malaysians have ‘mega sale’ culture.

It seems like most Malaysians are worried about our country’s economy but are not able to control themselves from spending more. However, compared to previous sales, most Malaysians ARE spending lesser, which is a good sign.

At the end of the day, it is important to spend on your NEEDs but it is even more important to know your limit. Always have the right plans which will ensure you are ready for year 2009, which is said to be worse than 2008.

But that does not mean all of us should dig our head into the mud and be prepared for doom. Be optimistic and always hope for a better year ahead. Without hope, we’re nothing.

Have a very happy year 2009 folks.

Economy getting worse. Consumer-related companies are having more sales than ever to promote consumer spendings. People become attracted to the cheap stuff and start to buy. Some buy without considering whether they need it, or if they can afford it. In the end, the amount they need to pay for their credit cards becomes shockingly large. Some will fail to pay. Banks end up in big trouble since many people cannot pay their bills and loans.

At the end of the day, the consumer-related companies earn the most. Those people who cannot pay will have to return their homes/cars to the banks, and some even forced to declare bankrupt. And when people cannot pay, the banks will not gain any benefits. They will start losing money if this continues. True, they can take back those cars and real estates, and resell them but they can only resell them at a much lower price. And reselling does not mean there will surely be a buyer. Those cars and real estates might stay with the banks for quite a while due to the poor economy.

In my opinion, I think all these started from the point when consumers (us) start to spend money like water and buy things which they cannot afford, and even borrow loans which they cannot pay (and the banks approve loans without thinking twice. Few months ago, the banks were competing fiercely with each other to get more people to apply for house and car loans. When competition is that fierce, the banks will become more linear when it comes to approving those loans).

So how serious is this?

Frankly speaking, I have a feeling that our country is actually undergoing such a situation, albeit in an early phase. True, encouraging people to spend more will certainly boost the economy since it improves consumer spending. But it does not take away the fact that people ARE getting poorer with the high inflation rate (and companies ARE doing badly due to the bad economy. Do bear in mind that not all companies are involved in consumer business..that’s why there is a possibility of job cuts).

I think perhaps it’s time for people to start being frugal and be prepared. And I do hope that Malaysia will not end up like US, though my gut feel is telling me our country is indeed heading towards that direction (maybe not as bad).

Last but not least, good luck to us all.