Using your newly earned salary
The first salary, and the few that follow, are truly special. They bring a sense of empowerment, maturity, and for some, a greater sense of responsibility. As you progress in life, here's a mantra to use your money wisely: prioritize experiences over things.
Let me explain.
Whenever you buy something new, a few things typically happen:
- You Make a Trade-Off: Like most people, each significant purchase requires some sort of trade-off. Money is finite, and every time you buy something, you either postpone or forgo buying something else. Unless, of course, you prefer credit or don't believe in concepts like savings, compounding, or the time value of money.
- Novelty Fades Quickly: The excitement of a new phone or gadget diminishes rapidly after a month of use. This is true for almost everything we buy, except for essential items like home appliances or your first laptop. The care we show for new things in the first month is nowhere near the attention we give them a year later (sounds familiar, right?).
Now, think about the price of your last laptop, tablet, phone, or car. You can probably recall the figure instantly. Keep that number in mind as we continue.
What if I told you to skip buying that new gadget and instead plan a holiday? Or enroll in a course you've always wanted to take but couldn't due to time or money constraints? Or spend quality time with family or friends on a memorable outing?
You'll cherish the memories of a holiday for years, unlike a gadget that quickly loses its charm. A new course might help you grow professionally or fulfill a long-standing desire to do something different from your daily routine. These experiences leave lasting impressions and enrich your life far more than material possessions.
And here's the kicker: these experiences often cost less than a new smartphone.
We tend to remember experiences much better than the money spent on them, especially the pleasant ones. We cherish these memories long after we've forgotten the cost, highlighting what truly matters to us.
Can you recall the cost of your last vacation or the expense of hosting a get-together at home? Probably not as quickly as you can recall the price of your phone.
Atleast, I can't. 🙂