6 Oct 2014

DAY 12: PERSONAL FINANCE PARADOX: The Secret To More Is To Want Less

I first learned what a paradox is in a JSS 1 Literature in English class on ‘Figures of speech’. My teacher explained a paradoxical statement as one with two contradictory words placed side by side, or a self contradictory statement that still makes sense in spite of the obvious contradiction. For example bittersweet, cold fire and ‘that Lion is gentle’. Paradoxical statements sometimes sound ironic (Irony, itself being a figure of speech).


In personal finance, the key to becoming financial free (-which I define as being able to buy anything because you can afford to), is to not buy everything (commonsense!), or anything at all even though you can afford it.
sijinius.com

Don’t go about buying things simply because you can afford it, definitely is paradoxical. Then what’s the whole purpose of being financially free- being able to have anything because I can afford (to have) it if I won’t but it even then?, you ask.
Exactly, it is because you go about not buying everything you see that you can afford anything you see.

When you teach yourself to curb your expensive impulsive spending habits, you will learn over time that human wants which are infinite and insatiable are best checked by knowing what your true needs are. Remember ‘Scale of preference’ in Economics? Accept the fact that we live in a world of infinite wants and limited, scarce resources of meeting them. Set a priority on your needs and wants according to the amount you have budgeted to spend on them for that month, and you will end every month of your life happier than you started it.

You don’t need money to make money. But you need money to make more money -paradoxical….? I know!

Start to trim your wants today so you can have more money to make even more money tomorrow.

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