Whenever money comes into our lives, our tendency leads us to think first about what we can spend it on – what to do for fun, how much clothing we can buy, where we can go on vacation.
However, few people tend to understand the importance of setting financial priorities.
- Do we really need the latest mobile phone if our current one is working properly?
- Do we really need the buy branded clothing every month when our wardrobe can’t take any more clothes?
- Do we really need the buy an expensive car if we do not afford it?
A lot of people tend to spend all of their salary, without even noticing how much they are spending on travel, food, clothes and the latest technology.
Unfortunately, a lot of people tend to forget the importance of saving towards their future, towards having an adequate pension at retirement and not be a burden on their relatives. How can we spend 20% of our salary on food delivery every day when we can prepare it ourselves? More than that, we then tend to forget about saving for our future when we will really need the money to live comfortably at retirement. Have you ever thought on the maximum pension provided by the government? Will that be enough?
We must enjoy life, travel and go to our favourite restaurants. However, we must also plan ahead and save towards the future.