Any country’s economy is majorly a combination of individual, business and governments investments. Consumer spending takes up a considerable amount in the economy because it generally overlaps with the total consumer financial confidence. Higher consumer confidence results in higher levels of consumer spending in the market. This kind of financial confidence helps the governments and businesses to analyze the perception of the consumers.
Hence, in the current economy, spenders are the big winners as they know the right places to spend their money or invest the same.
Different types of spenders
There are two types of spenders in the economy – Affluent Class & the Middle Class. According to most of the middle class people, spending money simply means to buy goods or services such as house, cars, apparels, televisions, food, medical bills etc. The middle class generally leads a comfortable and routine life. They follow a set pattern: Go to work, earn income, and buy a liability such as a home or a car. Yes, you heard it right. Buying cars and homes is definitely a depreciating liability and not an asset. Because of this very reason they are unable to either save or grow their money. To spend more than what they make, middle class are forced to work for longer hours and longer periods. They merely live their lives from paycheck to paycheck and cannot maintain their lifestyle if they lose their high paying job.
Opportunities for making more money
The affluent class is just the opposite in terms of spending money. They very well know that time is money and they spend their time to educate and become more aware of the opportunities for making more money. Moreover, unlike the middle class they buy cash-flowing assets that create a passive income for them. With that income they buy more such assets that generate even more such income. They are well prepared for the future
The real meaning of spending
Money is a currency and it is only powerful when it is in motion. Idle money will do no good as well as lose its worth. So, when we say that spenders are the winners in the current economy we are not wrong since we need to spend on appreciating assets rather than on liabilities.
Know where to spend to be a winner
From time immemorial, we have been conditioned to save our money wisely. In the current times, this advice doesn’t work out at all. Just saving money will not help you get rich or for that matter save a lot. If we want to get ahead in life financially, we have to learn how to spend money wisely. One must follow this as the most important principle.
To spend money wisely, one must be financially aware of the surroundings. Educate yourself about how you can spend and earn more. Get to study the markets, pay more attention to details and understand the concepts of how to earn more by spending more. It’s never too late to start. Just tweaking your mindset about spending will definitely make a big difference in your financial plans ahead.
