Adopting the right mind-set for better investments

One time, I saw this cute bag in a shop. Although I had enough money for the bag, I did not plan on buying it. So my frugal side and I were having an intense conversation. – A whole thousand dollars for a bag?? You could save it, or buy something you really need. But when I stood in front of the mirror with the bag in my hand, my not so economical side got excited – Oh, the outfits I would rock, the places we would go! The way I work hard, I deserve this bag. I never treat myself. Its an investment. 

I know I’m not the only one who uses this line ‘its an investment’ to justify spending. Although, we all, deep down know that its not always an investment. An investment is an asset acquired to generate income. Bags (or shoes) look good, but unless you are using them to benefit you economically, they are not an investment.

I’m aware that if you buy a quality bag now, you may not need to buy another one in a while. But you know, it’s not always about needs. The next new bag is always different (This is another excuse I use). Sometimes, a girl might also think she deserves some self-pampering a couple of times; until you wake up one day with a portfolio of a closet full of bags and shoes. 

Financial maturity is when you can call expenses what they are and let investments be investments. When you get to a financial point where you can splurge on a pair of shoes and call it a treat, while you have savings and the potential to earn more from your investments, then you’d have arrived friend. Until then, let’s make future returns the goal in our investment decisions.