Think and grow rich philosophy

[Lion]

Hi guys, I've started reading Think and Grow Rich by Napoleon Hill.

Interesting read. I have always been a big SAVER, disliking spending huge amounts on things and making it a priority to get a good deal in sales or by negotiation.

The book teaches you to think and live like a rich person in order to become rich.

The way I see it, you end up spending, you adjust your life focus and career in order to support this spending. Overall you increase your income which feeds your spending.

Does this mean...

You buy that BMW instead of a Honda (or any Korean/ French car in the UK),
You buy designer clothes instead of ordinary clothes,
You aim for luxury instead of compromise?

I am thinking that if I start to spend my savings, I'll have more motivation to earn more money, and that right now, I have no reason to earn more money, because I have savings.

Interested to hear your thoughts and philosophy on this.

 

[STR8UP]

Hi guys, I've started reading Think and Grow Rich by Napoleon Hill.

Interesting read. I have always been a big SAVER, disliking spending huge amounts on things and making it a priority to get a good deal in sales or by negotiation.

The book teaches you to think and live like a rich person in order to become rich.

The way I see it, you end up spending, you adjust your life focus and career in order to support this spending. Overall you increase your income which feeds your spending.

Does this mean...

You buy that BMW instead of a Honda (or any Korean/ French car in the UK),
You buy designer clothes instead of ordinary clothes,
You aim for luxury instead of compromise?

I am thinking that if I start to spend my savings, I'll have more motivation to earn more money, and that right now, I have no reason to earn more money, because I have savings.

Interested to hear your thoughts and philosophy on this.

I'll get roasted for this, but it's only by guys who have no personal experience.

Anyway, I am a firm believer in approaching things from a "how much can earn" rather than a "how much can I save" POV. Saving is based upon contraction. Earning is based upon expansion. Saving is FINITE. Earning is UNLIMITED.

You can't save more than you currently earn. Most people have bills and can't save anywhere CLOSE to what they earn. Is it a good way to get started? Yea. But the BETTER way to go about things is to constantly challenge yourself to EARN more. It's the faster and less painful way.

In one of his books (I don't think it is RDPD but I'm not sure) Robert Kiyosaki tells a story about how he had always wanted a Porsche. He approached his wife with the idea, and his wife said something to the effect of "Sure, just go out and find an income producing asset that will allow you to pay for it".

That's the difference between the saving mindset and the earning mindset.

I am also of the opinion that you should "invest in your image". Kiyosaki also talks about the importance of wearing nice clothes and staying "with the times" ni general.

The BIG thing you have to remember about investing in your image though is that you for moneys sake should only be investing in your image to maintain the air of success to PEOPLE WHO MATTER.

This means that yes, if you are cultivating success (much of which has to do with social connections), it is wise to invest in in your image. But so so wisely. You don't have to have a ferarri to impress business associates (although it might help in some cases) and you certainly don't need it to impress chicks (women look more at intangible signs of wealth such as the way you carry yourself) than they do material things.

I don't suggest you go out and start blowing your savings on material possessions. What I so suggest is that you start to learn about money and start to rub elbows with the right people. You shouldn't go crazy investing in your image when you don't even know anyone who it might influence in a positive manner to allow this investment to pay for itself.

 

[speakeasy]

In a consumer economy, if everyone starts saving, we go into recession. So yeah, I guess this philosophy works as long as only a few people do it. Think about it, I don't know what you do for a living whether you work for someone else or yourself, but whatever value you provide to the marketplace, if people decide to cut back on it because they all want to save, then there goes your earning, lessening YOUR ability to save.

 

[synergy1]

In a consumer economy, if everyone starts saving, we go into recession. So yeah, I guess this philosophy works as long as only a few people do it. Think about it, I don't know what you do for a living whether you work for someone else or yourself, but whatever value you provide to the marketplace, if people decide to cut back on it because they all want to save, then there goes your earning, lessening YOUR ability to save.

keynes proposed exactly this in the paradox of thrift;

http://en.wikipedia.org/wiki/Paradox_of_thrift

 

[Alle_Gory]

In a consumer economy, if everyone starts saving, we go into recession.

You mean a correction to the artificially inflated 'economy'. Debt can only drive the country for so long, its not self sustaining.

Think about it, I don't know what you do for a living whether you work for someone else or yourself, but whatever value you provide to the marketplace, if people decide to cut back on it because they all want to save, then there goes your earning, lessening YOUR ability to save.

Yup. That does suck. I'm not disagreeing there.

 

[Lion]

Every now and then I need to remind myself to spend and not save. I am in transition phase, since 2-3 years ago I have decided to earn rather than save- to experience life and what it has to offer, quality not quantity.

Money has always been spend wisely :yes:

 

[taiyuu_otoko]

I'll get roasted for this, but it's only by guys who have no personal experience.

What about guys that have more personal experience than you and still disagree with your opinions?

 

[OzyBoy]

I'm working on it. Got a long way to go still.

 

[STR8UP]

What about guys that have more personal experience than you and still disagree with your opinions?

This is one of those things that if you do have a different "opinion" (and it isn't even an opinion) about it, then I can automatically tell that you don't know what you are talking about.

 

[f283000]

Back when I was a kid there was this old woman that my mother knew from her job. This old woman kept on working till she was old and didn't need to. She had a couple houses in a very nice town. She was extremely frugal and saved, saved, saved. She was known as a real tight ass that just kept on working at her age for more money even though she didn't need it.

She finally retired. A few months passed after her retirement and she died (if not mistaken she died 2 months after retiring). This woman never took a vacation anywhere, didn't go to restaurants, didn't go out, didn't go shopping, she was an old school tight ass. All that greed, all that work past the time she was set with a few houses and money, and all her savings and she never got to enjoy it.

There was a time in my life not too long ago where I was working insane overtime and saving most of it. Then I remembered her story and it reminded me that money comes and goes and life can end when you least expect it. I could be working my butt off every week to save cash for something and I could get runover by a car 3 months from now from crossing a sidewalk. You never know what can happen in the future that could ruin your plans or put them to waste.

I decided to stop working overtime and just enjoy life. A big part of enjoying life for me is eating good food. I eat out most days of the week. Why eat a big mac when you get treat yourself to a $7 quality burger at a decent restaurant? whatever i feel like eating on a given day is what I do. Who cares if I can get something for 4 dollars cheapter at mickey d's than at a decent restaurant. We work hard for our money so we should reward ourselves accordingly.

We only live once so why not reward ourselves? you can still live a good life and save at the same time but you should never making savings a priority because it takes away from living life. You should never make savings a priority to the point you eat beans for dinner everyday in order to save. Life can end at any moment.

 

[Create Reality]

good post