When we returned to India in 2017, I continued to spend the way I normally would when working with Microsoft in the US. And as a result, made tons of mistakes that I just shouldn't have.
Over the next few years, I learned many things related to finances that I wouldn't have if I had continued working at the job.
1. Utilisation factor matters. If I have a lot of things but hardly use most of them, it is a sure way to be depressed. (Look around)
2. The core idea of money is that it facilitates easy exchange of goods and services. Not that you have to have a lot of it to get everything up for sale. (Read this twice)
3. The true worth of money is in what it can do for you. Yes, an emergency medical fund is important. Insurances are important. A good home, healthy food, a good school for kids, and a nice lifestyle are all important. But beyond that, everything else is only nice to have. (Remember good, not best)
4. Society pushes a narrative for money that you should avoid believing in. Most people fall for it. If someone bought a posh villa, they flaunt about it and make you want to buy one as well. They do it to validate their own insecurities. Don't fall for it.
5. True wealth is about meaningful relationships. Money can't do anything about it. In fact, the more money you throw at it, the tougher it becomes to build them.
6. Diversification matters. Cannot stress this enough. This is the only thing that will give you peace of mind about your finances. Only after I started diversifying I got hold of my finances. Also, no knee-jerk changes to strategies.
7. Prefer services over goods - every single time. The joy of buying something doesn't last long after you buy it. Usually, every additional thing we buy comes with maintaining it for years and sometimes decades. Pampering yourself or outsourcing mundane stuff in your life is a much better option. So if you must spend, consider services over goods.
8. Investing in yourself by buying AND reading a book, taking a class that you've forever wanted to, and learning something new are things that will compound your joy over time for a long period. Don't look for shortcuts here. Things start to make sense once they start compounding.
So yes, I did forget to spend, at least the way I used to. I am prudent and look for returns now. Not the kind that society thinks you should look for. I simply look around for joy - the joy of life.
Have more tips that you've learned on your life journey? Please add in the comments.
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