Delay Gratification

I came across people who find excuses to change car, excuses to spend, excuses to pamper themselves. Some will say, "I only lived once", "I'm young only once", "I can earned back what I spent", etc.

I've learnt that since I lived only once, I should make the most out of it. Since I am young only once, I have to make sure I do not look back later and say to myself that I shouldn't have spent like that. I had my share of desiring a better car, only to look back and told myself "I would have been $30,000 richer if I had not changed car those few times".

What we have spent, cannot be earned back. We only get to earn new income, but not what we spent. It is easier to spend than to save and grow these funds, so that we have more in future and are more able to afford things.

Rather than spending $500 on a new watch, or many thousands to change to a new car, we could have set aside this money and invest it so that it multiplies so that we have more to spend in future. Changing car, getting new and more fashionable clothings, new gaugets such as handphones, pda, computer, etc, are not a necessity but many finds it necessary to change.

Take car for example, if we were to change to a brand new entry level car (eg, those that cost less than $50k), we may loose $25,000 (depreciation) over 3 years. Calculation as follows:
- Purchase Price : $48,000
- 3 years paper value : $20,000
- Body value : $3,000

If existing car has another 7 years left, why not drive it on? Rather than wasting more money, save up this unnecessary funds and invest. With the earnings some years later, you could afford a new car and still have left overs to spend or invest again. Think again.