Wealth can deliver three key benefits

Wealth can deliver three key benefits
11 July 2013

I’m often asked why do you save and invest, when we often here pundits and gurus talking about living in the present moment – the ‘Now.’ Or people say: ‘what good is money, you can’t take it with you when you are dead.’

I am a big advocate of living in the present and enjoying what I have now, it means I am more grateful for what I do have and not carried away with desires for more ‘stuff.’

However, at some time or other we will all reach a crossroads in our life, where we feel a need to change direction, travel more, follow a passion, or spend more time with loved ones. A healthy bank balance certainly makes life a little easier when we reach this crossroads.

In my view saving and investing to build wealth can deliver three key benefits:

Security and freedom

If you have money, you don't have to worry about it. Avoiding debt gives you peace of mind and much more sense of security and stability. Concerns over financial security permeate so many of us in our daily lives, and that concern reduces life satisfaction levels. By living below your means, you can obtain a degree of financial control.

Money can give you the freedom to pursue your passions. 

The happiest people I know are typically those who have a sense of purpose. Life does not have to be a hamster wheel of mediocrity, when we choose to save and invest we have more flexibility in later years. I am sure most of us would rather spend our days engaged in activities that we find absorbing and satisfying, doing something we enjoy and feel we are good at -- and where we feel we are doing good.

Money can ‘buy’ you time with those dearest to you. 

Many studies show that true wealth comes from relationships, not from dollars and cents. In fact, we don’t need a study to tell us this – we intrinsically know the truth of it. Having built up a comfortable nest egg we have more time to relax on vacations with our loved ones, spend quality time together on adventures or experiences. 

Wealth is not about consuming more stuff – it is about the freedom to choose where and with whom we spend our time.  What does wealth mean to you?

Comments

No comments.

If you are registered you need to log in to comment, if not, please sign up.

Author
Head of Behavioral Finance
cashy
Facebook Feed
Related articles