Spending Equals Investing

Spending Equals Investing

You ever hear that saying “time is money”? It feels like I’ve personally heard it a thousand times from a thousand different people. Even though that phrase is overused and annoying sometimes, it doesn’t mean that it isn’t true. Another common phrase is “money makes the world go around”. Of course money isn’t the physical source that causes the earth to rotate on its axis, but it does play a part in everything humans do on this earth. Money can take many forms, be used for multiple purposes, and can dictate whether someone lives or dies in extreme cases. As much as we would love for everyone to be equal and on a level playing field, that world only exists in fantasy land. The truth is that people who don’t have money want it, and people who do have it want more. The more you have, the more options become available to you.

Since I can remember I’ve had an interesting relationship with money and how I choose to use it. I was raised by a single mom, who worked extremely hard to make sure my sister and I had a roof over our heads, food to eat, and clothes on our backs. To say it plainly, I don’t come from a lot. As an observant young kid I noticed that at a relatively early age. As a kid I got $100 from my grandma every birthday. Most kids would hit the mall, toy store, or any store that contained something they wanted because that money would burn a hole in their pocket. I on the other hand always waited. It wasn’t that I didn’t want toys, new clothes, or something shiny to impress the ladies with. I just knew that I felt better with the money in my pocket then spending it on something that I could only use, or wear at certain times. My goal was to save it and use it only for emergencies or until I found something that could help me in the long run.

The issue most consumers have is that many think for the moment. That video game is popular right now. This style of shoes is in right now. These are the same shades that so and so had on in his music video. Fast forward six months from now and who cares about any of that. The video game is old, the shoes are last season, and the shades are from a video of a song that no one can stand anymore. Why not think six months ahead before spending that money.

The trick is to imagine every transaction as an investment. Of course paying bills, buying groceries, and putting gas in one’s car are essential. It’s the non-essentials that one should concentrate on. Everything we do costs money, going to college, on vacation, to the gym. Time is really money. What you invest your time in dictates what results you get in life. Same rules should be applied with daily transactions. Every time you make a transaction, think about what payoffs and consequences buying that product or service will get you in the future. Steer away from the impulse buy and embrace the investment buy.


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