Balancing today's gratification for tomorrow's needs

I am reading the book "The Millionaire in You" by Micheal LeBoeuf, PH.D. and his concepts about financial freedom also touch on the need to save, invest and grow your wealth using the power of compound interest to help you achieve your objectives.

LeBoeuf also takes about how delaying instant gratification and saving for tomorrow's needs is one of the ways that we can achieve financial freedom. But he also makes the point that money is earned to be enjoyed.

The recent tragedy involving the five Singaporean dragon boaters who lost their lives in Cambodia reminds us of the fragility of life! We are sad for the five men taken in the prime of their lives and our prayers go out to the family of those who were lost to the river.

Living today vs saving for tomorrow
The fundamental question that we face each time we decide to save or spend is what to forgo for today so that we can have more for tomorrow. But what if tomorrow never comes? That is the key argument proponents of "live today for we do not know if tomorrow will ever come" approach to life. They believe that living hedonistically, spending to enjoy what life can offer is the way to go because life is FRAGILE!

Life is not a PSLE examination. There are no RIGHT or WRONG answers. You decide what answers to write down to the question of life: how do you want to live your life?

My own approach is to strike a balance between savings and spending. I try to live a simple life where my expenses do not exceed my monthly income allowing me savings to be channeled into investments to grow my capital. However, I also start to realise that money is to be enjoyed while one is able to appreciate some of what it can buy. Thus, while my fundamental philosophy has not changed, I am becoming less of a tightwad if the money spent is for my family to enjoy themselves a little.


Buying a car - what heresy!
I am now inclined towards buying a car to provide for a slightly more "luxury" mode of travel for my family especially now that a new addition is on the way. I have never owned a car since I started working and have relied on the public transport system for my travelling needs supplemented by the occasional taxi. However, with the numbers in my household increasing soon, I realise that, hey, I have been as prudent as I should by clearing off my housing loan and thus I can enjoy life a little by getting a small car. :-)

I also feel less guilty towards car ownership as I can use my family as the excuse! hahahah.... :-)

Financial Security
I was also paranoid about financial security since the dot.com days when I saw colleagues being retrenched without retrenchment benefits, i.e. being counseled to resign. Now, I realise financial security can only do so much if one does not take care of one's mental and physical health.

The road towards financial freedom changes now and then because your circumstances may change. A new addition to the family. A spouse who stops working. A promotion, an increment or a windfall are all things that can happen in life. The key principles that will help you navigate through the challenges of life are a positive attitude, flexibility and a love for life.

Life is the greatest gift of all and if we have a meaningful life anchored in health, we can overcome all obstacles and challenges put in front of us.

Remember to live according to your principles and if financial freedom is your ultimate objective, stay engaged in how best to navigate the journey towards your final destination!

Be well and prosper.