Socien's Blog

Introducing the Conflict Between Immediate and Future Spending: In today’s world, we often find ourselves torn between whether to spend the money we earn immediately or save it for later. There is a prevailing societal encouragement for the general population to save and allocate their funds for when they are no longer able to work and have retired in old age. Essentially, in the short term, we save with the aim of ensuring that the money we currently possess will suffice until we have the capacity to earn more in the future.

The Conflict Between Immediate and Future Spending: In today’s world, we often find ourselves torn between whether to spend the money we earn immediately or save it for later. There is a prevailing societal encouragement for the general population to save and allocate their funds for when they are no longer able to work and have retired in old age. Essentially, in the short term, we save with the aim of ensuring that the money we currently possess will suffice until we have the capacity to earn more in the future.

The Purpose of Saving Money: Saving money must be functional. One mustn’t save money for nothing that is to simply consume it at very late date. If he does so he might be in a double loss whereby (I) his money is not spend over something that can generate more money (a function) and (ii) is in the savings account for nothing (no function). In this context, a function refers to the increasing worth of money or an item as it is used or expended. Saving money for a specific purpose can be likened to a crucial piece in someone’s path to success.

Explanation of Long-term Savings Strategy: Long-term savings should not remain dormant for many years until retirement from a regular job. Doing so indicates that the savings are being accumulated for the wrong reasons, and inflation poses a threat to their value.
Individuals who are generating new wealth have opted for short-term savings lasting no more than three years initially. This approach enables them to utilize a growing savings balance to advance an idea until it becomes attractive to new investors with capital. Balancing current and future consumption is essential in this strategy.

The Society’s Perception of Wealth and Consumption: Contemporary society assesses an individual’s value based on the extravagant image they can present to the public. To be deemed wealthy, one must not only spend, but also invest in items that contribute to this outward facade. The desire for affluence is widespread, leading to a surge in spending that benefits capitalists selling products to the general population, thereby increasing immediate consumption. In the current era of consumerism, accumulating wealth is challenging for those who aim to mask their financial limitations with ostentatious purchases. The prevailing conflict leans towards immediate consumption, albeit in a manner that lacks long-term purpose.

The Evolution of Wealth Management: The era of the gold standard has become a thing of the past. Saving money is no longer a reliable method for preserving, let alone building, wealth. Presently, there is a widespread preference for immediate consumption that involves acquiring assets capable of generating income. This approach is now more appealing than ever. In this age, regardless of a country’s prosperous economic past, the possibility of an economic downturn silencing the nation’s economy indefinitely looms, making it crucial to adapt to these uncertainties.

Resisting Social Media Pressure and Prioritising Financial Well-being: Resist succumbing to the pressures of social media. Stay composed. You are not in a competition to demonstrate your wealth to others. Simply be authentic and allocate your money towards meaningful purposes. Invest in securing your financial stability for the future.

In today’s digital age, the pervasive influence of social media can often create a sense of pressure to showcase affluence and material possessions. However, it’s crucial to maintain composure and resist the urge to conform to these external pressures. Instead of engaging in a race to portray ostentatious wealth, it’s important to stay true to oneself and allocate financial resources towards endeavors that hold genuine meaning and value.

The emphasis should be on making prudent financial decisions that align with long-term goals and aspirations. By focusing on meaningful uses of money, individuals can essentially invest in their future financial stability. This approach involves strategic planning, such as budgeting, saving, and making informed investment choices, to secure a solid financial foundation for the years to come.

The concept of “buying your ticket to future financial stability” underscores the proactive and deliberate nature of financial planning. It encourages individuals to make sound financial decisions today that will yield benefits in the future, providing a sense of security and peace of mind. This can encompass various strategies, such as building an emergency fund, investing in education or skill development, and setting aside funds for retirement.

Ultimately, the message encourages a mindset shift away from the superficial pressures of social media and towards a focus on personal financial empowerment and stability. It promotes the idea that genuine wealth lies not in conspicuous displays, but in the ability to make thoughtful, purposeful choices that contribute to long-term financial well-being.