We hear two extreme philosophies of life. One says, “Spend less, own less, and be minimalistic. The other says, “Live it up, enjoy the luxuries, and have fun.”
So what should you do?
While there can’t be a prescriptive answer, let me lay out a framework to think about it.
Any money you have earned, you have the right to spend in whatever way you want. Whether you choose to give some money to charity or buy diamond jewelry, nobody can (and should) judge you — it is your money after all.
But here is what happens.
When you start living it up, it is like letting a genie out of the bottle — you soon see a cost creep that you never bargained for. Here is an example.
Let us say, you spend a few crores and buy a really fancy car. It is not just a one-time expense — now you spend 10x more every year on its insurance and maintenance. Even a small dent in the car will break your heart!
Furthermore, when the car is so fancy, won’t you want designer labels, private jet travel, and expensive watches?
And to earn that much money, you drive yourself crazy at work, take extreme risks, and have no peace.
After some time, you forget why you started this chase in the first place 🙂
So does it mean, we should all go minimalistic? Not necessarily — if you can comfortably afford some luxuries you really want, why not?
Then how do you find the right balance? Here is the answer: Do what will give you the most peace of mind.
When you buy things to get social validation, splurge more than you can afford, or do things that don’t align with your values, you will feel some discomfort. That is life telling you that you are compromising your peace of mind.
Don’t do that.
– Rajan