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MY
WEALTH
Consumerism
Mentality
Posted: Nov 2009
Why
do people have consumerism
mentality? How can you resist
the consumerism mentality?
The
wish for ownership is endless.
We do want to have as much as
possible. Although we could live
with a few things, we want many
things in our possession. There
are two ways to accommodate what
we want: we can reduce our
appetite for things or increase
our income.
The
wish to possess as much as we
can is leading us to consumerism
mentality. But if you are
tempted to buy something, before
doing so ask yourself three
questions.
This
approach will help you to forget
things that you do not need. It
will give you a chance to buy
things cheaper, for the things
that you really need. In reality
you can get any product or
service below the regular retail
price. All what you need is a
little effort and thinking.
-
Buying
for cash will give you the
discount.
-
New
product is usually
expensive. Buying product
later will give you a chance
to buy it cheaper.
-
If
you do not spend your money
on many unnecessary things
you can invest your money.
Return on investment can
give you a chance to buy
things. You money is earning
the money.
Whenever
you feel a need to buy something
you need to ask yourself
"Why?". Do you really
need it? When you see somebody
buying some product, ask
yourself do you really need it
too? Or you simply want to keep
up the pace? You need to make
good judgment about every
purchase. You need to reprogram
your brain. If you are buying
things that you do not need you
lose a lot. Firstly you spend
your money. Secondly, you get
garbage that you do not need.
Finally, you could have save and
invest some money that would
earn money for you.
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It
is up to you, whether you
want to be: consumerist and
shopaholic or future
rich. The consumerist is
spending more than it earns.
Therefore he borrows the
money to cover the deficit
within budget. Borrowing of
the money is also draining
budget because of the
interest rates. The future
rich one is spending less
than it earns and invests
the rest.
This
is the difference in
mentality of consumerist and
the rich. Future rich are
becoming rich from day to
day. Consumerist is ending
up in poverty, with a
pension that can barely
cover basic costs. As they
get old, the rich can
continue to live as rich,
while poor will have to get
another job – if anybody
would employ them at all.
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When
you are making up the choice
between spending and
investing, think about long
term effect. Whenever you
buy be aware that you missed
an investment potential of
that money. 12 dollars spent
less today can bring you
$690 in 30 years if you
invest them into investment
fund with, say 15% return on
investment. If you add $12
every month to your
investment after 30 years
you will have $ 83.079. If
you manage to save $12 every
day and invest them monthly
to the fund you will have
$2.526.997 after 30 years.
With
2,5 millions you do not need
to worry about the
retirement. You may even
retire earlier if you want.
The difference is only in
$12 that you can daily spend
or save and invest. What
will be your choice?
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