Probably the financial advice you didn’t know, you needed. If you are big believer in the mantra that “Money is meant to be spent” or while in school lived by the approach “Eat once, starve once”, then this article is for you. Consider this write up and words a safe space.
For decades, we have been fed the same gospel. Save every coin (even I myself published an article on why “Saving is Right” when I was about 10/11 years old in my Primary school; the famous article that got my readers calling me Engineer, as was written in the article that that was my “dream career ” then. So ironic that now I am over 26, my perspective on money has since changed.
Financial advisors are big on preaching “cut every expense”, “sacrifice every pleasure”, “delay every enjoyment”, “Llve modestly today so that one day, in some distant future, you can finally enjoy life”. Here is exactly where I have a problem with that belief, now that say I have grown and know much better. Tomorrow is a promise nobody has!
Sadly, some people spend their entire lives preparing to live rather than actually living. They wake up at 5am, work tirelessly for 40 years, deny themselves vacations, postpone buying the clothes they love, skip experiences that bring them joy and eat the cheapest meals possible, all in the hope that one day they will “enjoy the fruits of their labor.”
Then life happens. Some never make it to retirement, also given the life expectancy in my home country is what? 45! Others get there with failing health, unable to enjoy the things they spent decades saving for. And then there are those whose carefully guarded fortunes eventually land in the hands of children and grandchildren who squander it all in a matter of years.
The irony is painful. A man can spend 50 years building wealth only for a second/third generation descendant to burn through it in five. History is littered with such examples, at least in my home country where succession wars happen in three out of every 5 families after the bread winners passes on, and a few if not all members of the family both close and extended want in on the share of the family cake of the estate.
Perhaps that is why my argument is that you live slightly above your means. Not recklessly. Not foolishly. Not to the point of drowning in debt. But enough to enjoy the rewards of your hard work while you are still alive to experience them. Because one could say that maybe they don’t have spare money on the side to engage in luxurious exploits like buying a good meal/ exploring new foreign foods like sushi and sea food, wearing a nice outfit, taking the holiday, drive the car that makes them smile every time they walk toward it, attending the concert and generally creating memories. My question then becomes how much is enough money??
Because the truth is that nobody remembers the money sitting quietly in your account. Not like you can go bungee jumping, gorilla tracking, go karting, sky diving etc; when you are 70. Your 20s, 30s and early 40s come once in a lifetime. Even when your final bed, I bet your mind would be much concerned about how much you have in your bank account. Instead it will recount the moments, the stories and memories created with your loved ones, the places you visited, the birthdays you attended/ hosted, the family trip you took, and the experiences you shared.
Many people treat life as if they are immortal investors waiting for the perfect market conditions before cashing out. Life doesn’t work that way. You can spend years postponing happiness only to discover that happiness was never waiting at the finish line. It was available all along.
After all, nobody has ever stood at a funeral and said, “What a shame. He enjoyed his life too much.” They talk about the places you went, the people you loved, the laughs you shared, the life you lived. So save your money, yes. Invest wisely, absolutely. Plan for tomorrow, by all means.
But do not become so obsessed with preserving wealth for the future that you forget to enjoy the present. Because one day, somebody else may spend the money anyway. You might as well enjoy some of it yourself.
Outside the succession yiddi yadda, living beyond your means also elevates you in the social and professional ladder. There is something psychologically powerful about looking successful. People may hate to admit it, but appearance matters. The world responds differently when you carry yourself with confidence, dress well and present yourself as someone who values quality.
Sometimes the expensive suit isn’t about impressing others. It is about how it makes you feel.
The nice restaurant? It isn’t about showing off. It is about rewarding yourself for surviving another difficult month. The decent place that sounds like it might be way out of the range for the amount you had planned for rent, but comes with security, comfort, a fair access to the road, and leaving you without worry when you return home late in the night, move in that house without much thought. Again, perception is everything. You’ll pull more social respect, even by the place you choose to stay. If going to a business meeting, it doesn’t hurt to dig deeper to go in a cab than a motorcycle, because first impression is everything. It might hurt your pocket for a bit, but in the event that you close that business, you get to smile your way to the bank. Sometimes the holiday isn’t a luxury. It is maintenance. The danger, of course, is confusing enjoyment with excess. Living above your means should never mean starving yourself to finance a lifestyle you cannot sustain. It should not mean borrowing recklessly or accumulating debt just to impress strangers on social media. That is not living. That is performing. There is a difference. The art lies in understanding that money is a tool, not a trophy. A bank balance is meaningless if you never use it to improve your quality of life. The goal is not to die with the biggest account balance. The goal is to live a life rich in experiences, relationships, comfort and memories.
Whereas some statements stated above may almost send financial advisors into cardiac arrests, it is important that they advise their clients to also live a little, and not just live their lives in fear of uncertainties. Not the most financially woke, but one way around it I would recommend is the 80/20 rule. Out of 100% income/ cash coming in, spend 25% on the necessities (rent, school fees, amenities, etc), invest 40% and you can use the other the best way you know how. Most importantly, don’t forget to live a lot.