Money can’t buy happiness” – this is a common saying that we’ve all heard at some point in our lives. But is it really true? As Bollywood superstar Shah Rukh Khan once said,  “Money can’t buy happiness, but it’s a lot more comfortable to cry in a Mercedes than on a bicycle.” While money may not guarantee happiness, it does play a significant role in our lives. Yet, when it comes to managing our finances, the emphasis is almost always on saving and investing, with little attention paid to spending. In this post, we’ll explore why spending is just as important as saving and investing, and how it can contribute to a more fulfilling life.  

Save more, invest wisely” – this is a phrase we’ve all heard countless times from financial planners, advisors, and even our own elders. There’s no denying the importance of saving and investing in building a secure financial future, but what about spending? It’s a topic that is often neglected or viewed as frivolous. Yet, spending is an essential part of our lives, and it’s crucial to strike a balance between saving, investing, and enjoying the present moment. In this post, we’ll explore the benefits of spending and why it deserves as much attention as saving and investing.”  

Saving and investing are important pillars of financial stability and growth, but they’re not the only ones. Spending money is also crucial for leading a healthy financial life. After all, what good is money if you can’t enjoy it? As the legendary Bollywood actor Rajesh Khanna once said, “Zindagi badi honi chahiye, lambi nahi” (Life should be big, not long). In other words, it’s not the length of our lives that matter, but the experiences we have during them.

Of course, this doesn’t mean you should go on a reckless spending spree and blow all your savings. But it does mean that you should allocate some of your funds towards experiences that bring you joy and fulfillment. When we spend money, we’re not just buying material possessions; we’re investing in ourselves and our happiness. As the famous Indian author Ruskin Bond once said, “Happiness is a strange thing. It can only be experienced by spending it.” Whether it’s a vacation with loved ones, a fancy dinner at a restaurant, or even just a movie ticket, these experiences contribute to our overall well-being and sense of fulfillment.

Moreover, spending also plays a vital role in the economy. As we spend money, we’re creating demand for goods and services, which in turn creates job opportunities and boosts economic growth. As the former Indian finance minister P. Chidambaram once said, “Every time you spend money, you’re casting a vote for the kind of world you want to live in.” By spending money on businesses that align with our values, we can support causes that matter to us and contribute to the betterment of society.

So, while it’s important to save and invest, it’s equally important to spend money on experiences that bring us joy and enrich our lives. As the old Indian saying goes, “Jeena isi ka naam hai” (This is what life is all about). By striking a balance between saving, investing, and spending, we can achieve financial stability and lead a fulfilling life.

Spending is a crucial aspect of personal finance, yet it often gets overlooked in favor of saving and investing. In reality, spending plays a vital role in our financial lives, and it has several benefits that should not be ignored.

First and foremost, spending allows us to meet our basic needs. As comedian Johnny Lever once joked, “Paisa apna ho ya na ho, roti toh sabko khani hai” (Whether you have money or not, everyone needs to eat). Food, clothing, shelter, and healthcare are all essential expenses that we must incur to survive and thrive. By spending money on these necessities, we can maintain our physical and mental well-being and lead a comfortable life.

However, spending is not just about fulfilling our basic needs; it’s also about enjoying life and achieving our goals. As the popular dialogue from the movie “Guru” goes, “Paisa bolta hai” (Money speaks for itself). Money can help us attain anything we desire in life, and we should not hesitate to spend it wisely. Additionally, the dialogue from the movie “Baazaar,” “Bade log, badi soch, bada paisa” (Big thinking leads to big money), highlights how thinking beyond the ordinary and taking risks can lead to significant gains in life. By spending money on experiences that align with our goals and aspirations, we can improve our lives and achieve our dreams.

Furthermore, spending plays a critical role in supporting the economy. As we spend money, we create demand for goods and services, which in turn creates job opportunities and boosts economic growth. As the famous Indian industrialist Ratan Tata once said, “I don’t believe in taking the right decisions; I take decisions and then make them right.” By spending money on businesses that align with our values and support causes we believe in, we can contribute to the betterment of society and help create a more prosperous future for all.  

Paise ped pe nahi ugte (Money doesn’t grow on trees) ,” as the old saying goes, and most of us have heard it from our elders. They’ve advised us to save and invest our hard-earned money for a rainy day. While there’s no denying the importance of financial stability and growth, what about spending? Why is it often neglected in financial planning?

The truth is, spending plays a crucial role in personal finance. Apart from meeting our basic needs, spending on things we enjoy and value can bring happiness and fulfillment. Remember the iconic dialogue from the movie “Guru” – “Paisa bolta hai”? It highlights the power of money to help achieve anything in life, and that we should never shy away from spending it.

Moreover, spending also supports the economy and creates job opportunities for many. In India, consumer spending accounts for over 60% of the GDP, and it’s a major driver of economic growth. The upcoming festive season is a perfect example of how Indians love to shop and spend. The hustle and bustle of the markets during Diwali and Dussehra is a testament to the spending power of its citizens. It not only brings joy to us but also creates employment opportunities for many.

However, some people may hesitate to spend out of fear of overspending or because they believe saving and investing should be their top priorities. It’s true that saving and investing are crucial for financial stability, but solely focusing on them can have negative consequences.

For instance, excessive saving can lead to missed opportunities for personal growth and development. Remember the movie “Zindagi Na Milegi Dobara,” where Kabir, played by Abhay Deol, encourages his friends to break out of their comfort zones and enjoy life to the fullest? It’s a reminder that we shouldn’t let the fear of overspending stop us from experiencing life.

Moreover, a reluctance to spend time and money on loved ones can strain relationships. Do you remember the movie “Piku,” where the character played by Amitabh Bachchan refuses to spend money on his daughter’s wedding? It leads to tension and conflict between them. It’s important to strike a balance between saving and spending, and to prioritize our relationships over money.

In conclusion, personal finance is not just about saving and investing, but also about spending wisely on things that bring us joy and contribute to the economy. As the Bollywood movie “3 Idiots” reminds us, life is a race, and we should not forget to enjoy it. Focusing solely on saving and investing can lead to missed opportunities for personal growth, strained relationships, and a failure to live in the moment.

While investing is necessary for financial stability and growth, it’s important to remember that it also comes with risk and uncertainty. Therefore, striking a balance between saving and spending is crucial. We should not fall into the trap of excessive saving or investing, as this may lead to a lack of joy and happiness in our lives.

So, let’s use our spending power to create experiences and memories that bring us joy while also supporting the economy. Let’s not forget that financial health is not just about the numbers in our bank accounts but also about the quality of our lives.      

Rtn. Er. Bhanu Pratap Jain, CFPCM |CII (Award) UK| CFGP The author is a computer science engineer by qualification and a certified financial planner by profession. He helps professionals and businessmen with personal finances and help them retire early. His firm manages wealth for 700 families since last 50 years with assets under management and advisory of more than 200 Crores . He can be reached at ceo@financialarchitect.in

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