On spending money and the Luxury rule

Bugatti Veyron [Explored]It might appear as easy (“If I have money I'd know how to spend it!”) but in reality spending money is all but. In fact it is also a skill that needs to be learned, if one was not lucky enough to live in a surrounding where money spending skills were taught.

I have learned the first step the tough way and I'd like to pass my experience on.

Greatest challenge with spending money is understanding what money really is. It is not the ticket to your dreams, but a tool for changing the world.

When I earned my first big bucks, I did what I thought was right at the time - chased my passion, more accurately I spent it all on a sports car. I bought a really powerful one and I was living my dream.

For about two months.

A friend of mine spent his first big money on a new BMW. He then proceeded to buy Hi-Fi equipment for 25,000 EUR.

And then he was happy. For about two months.

And it seems that we both needed a lesson before we could figure out an important thing that unfortunately nobody told us before. Using money to purchase materialistic goods is throwing it in the air (even worse than that, because money thrown in the air can at least be found by somebody who really needs it).

The Luxury Rule

As you can imagine, at first I had problems comprehending this newly found wisdom and putting it to practice. I worked so hard so I could 'enjoy' life, and then all of the sudden I became all ‘wise’ and didn’t think that was such a good idea any more. Truth was I did not want to be enlightened in this way, I wanted to spend money on the luxuries that I longed for and I did not have the inner strength of a Tibetan monk to resist the temptation. To combat this I have devised what I simply call the luxury rule:

Whenever you desire to spend money on a luxurious item (item you can normally live without), first spend equal amount of money on charity.

And by charity I mean spending money doing a good deed. It can be a charity organization, or total stranger in need, or helping your friend, or a family member.

What it does is it stops you right there in the track as suddenly every luxury becomes twice as expensive.

And if you really want it so bad, you first have to make sure you have sane amounts of funds left while forcing you to do something good you might not normally be inclined to do. And by doing all this, you will discover you are actually helping yourself.


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8 Comments

  1. Oct 15th, 2011 9:46 PM

    a grown man and yet, so naive... :(

  2. Sep 22nd, 2011 11:17 PM

    Consumerism is a dangerous beast. One may feed it all his life with no satisfaction in the end. The Western idea of happiness as a consumable commodity is defunct. For some it takes a lot of time and money to finally realize this simple truth.
    That said, I still refuse to compromise on my coffee. :-)

  3. Sep 15th, 2011 4:06 AM

    That is a good rule to live by, now all I need is the money

  4. Sep 2nd, 2011 1:40 PM

    Svaka vam čast predobar artikal, jeli problem da ga objavim na svom blogu?

  5. Sep 1st, 2011 8:38 AM

    I totally agree. People get too impulsive when they get their hands on big dough. When I got my first paycheck, I bought expensive gadgets such as music player, headphones, cellphone, gaming PC and a gaming laptop (yup I earned a lot that time before I had to quit the job) but then after a couple of DAYS, responsibilities came knocking on my door and I had only enough money left for food and gas until my next paycheck. I have all the papered responsibilities on my hand and all the gadgets in front of me and I'm looking at them. I was like "Damn..." and that's all I could say. I had to borrow money from friends and family so I could pay what needs to be paid. It took me around a couple of months before I could recover and I even lost my girlfriend of 8 years. She's been telling me what to do with my finances but I never listened and she got fed up. During the time I was trying to recover I was so deprived and can't even indulge on foods that I'm craving I swear I lived a really frugal life that time. Now I have a new job (higher paying) but I didn't take that as a reason to buy all the things I want. You're right, I always make sure I have the equal amount of funds in my bank before I buy something of a certain amount. Now I don't have problems in handling my money. But I never got my partner back though.

    Money is powerful. Without you knowing it, you could lose someone because of it. The good thing is you can learn from money too, but one thing I regret is I should have listened to my partner who was way wiser with money than I am instead of getting into a fight with her saying that I know what I'm doing and that I'm responsible. It just ended up being a hard punch on my face.

  6. Aug 29th, 2011 3:15 PM

    I've rarely had the opportunity to spend such amounts, but I like your idea of pairing the desire to spend with the desire to aid.

    So is the picture, a picture of your car. :O)

    • Aug 30th, 2011 10:44 AM

      I am afraid it isn't :)

  7. Bojan Petrovic
    Aug 29th, 2011 9:39 AM

    I totally agree! Well said! Thanks for sharing :)