We all know people generally spend more when they earn more but is the opposite possibly true as well?
As we climb up the corporate ladder, gradually getting salary increment and more savings in the bank. The natural tenancy would be to spend more on enjoyment as the experience is just pure pleasure even when it actually creates a big hole in our pocket. I understand the emotional struggle especially when you have worked really hard for the last few weeks and what you ask for is merely a deserving break. What few of us know is that the opposite is true as well and in fact even more appealing – earn more by spending more.
Before you start to build castle in the sky, let me write it more accurately – by spending more correctly, you will earn more eventually.
By spending more correctly, you will earn more eventually.
Smart items to spend on
Spending more here does not refer to unnecessary purchases but spending on creating assets and opportunities. This could simply be any of the following:
- Purchase of property when one meets the loan criteria
- Purchase of financial products which comes with dividends
- Purchase of experience (travelling, overseas exchange)
- Attending value adding courses
- and the list goes on
These items are assets that will bring more value to your personal development which will also generate wealth. In some scenarios, you may need to cut down expenses on unnecessary items to pay your spending on these smart items. I can assure you that it is worthy! A friend of mine needs to downgrade his BMW x3 to a Toyota to free up more cashflow for his second property which will provide him a passive rental income. Hence, by spending more you earn more.
You must have heard of – don’t work hard, work smart. Today I introduce a complimentary quote to you. Don’t spend hard, spend smart.
Don’t spend hard, spend smart.
Let me know if you have spent on something which made you earn more! 🙂