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To Save or To Spend?

When it comes to money, there are two schools of thought – the old and the new. The old school of thought believes that “One should save for a rainy day.” Save for tomorrow even if it means you have to be frugal today. The new school of thought, on the other hand, believes that “One should live one’s life today.” After all, you don’t know if you are going to be alive tomorrow. So why bother saving for it? My only question to people who believe this is, “What if you live till tomorrow?” This new thinking is further exacerbated by the easy availability of loans in all forms. You can borrow money to buy a car, to buy a house, to educate yourself, to invest in the innumerable IPOs, to go on that foreign trip, or for entirely personal reasons (no questions asked!). You can buy just about anything on an EMI. Today’s youth have never had easier access to money.

In my opinion, it is prudent to save a fair bit for a rainy day. That, however, does not imply frugality. You should enjoy luxuries, but only those that you can afford to. I personally believe that loans are a necessary evil. Take a loan to enjoy a luxury only if you know that you can pay it back without resorting to frugality. After all, what’s the point in enjoying a luxury if paying for it means you have to think twice for your next meal.

What’s your take on this?

5 thoughts on “To Save or To Spend?

  1. Hi Vinaya,
    A very thougthfull blog…
    You need to spend on the reuirements.
    and maybe once in a while for luxury…
    But always have a thought for tomorrow..
    If you are alice tomorrow how will you handle it…
    Good luck for your new endeavour..

  2. Used to be that:
    “Money saved for a rainy day,
    Buys a smaller umbrella than it does today”
    Ergo, inflation makes saving foolish.

    Now, thanks to China and IT,
    Tommorow buys a bigger PC/TV etc.

    A win-win?

  3. loved your write-up. I think people now a days are so lost in competing with each other. each must have what the other person has. and the result? well, we all know. one should be wise in knowing what he or she can afford without breaking your bank.
    enjoyed your blog.

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