Why you need to spend more to earn more

Spend more to earn more” .

It looks like a counterintuitive advice but believe me it’s not.

 

Probably you are hearing it for the first time. Let me clarify.

 

People may take wrong meaning from this. It’s not advising you to spend more than what you earn. It just advises you atleast make conscious efforts to spend some part of your earnings.

 

Only on the surface it looks like a counterintuitive advice but it’s truth at its core.

 

But tell me,how can spending more money can give me more money?

Well, it’s not about money only, it’s about time & money.

 

If you want to make more money, spend money intelligently. If you want to create more free time, you need to spend your time intelligently.

 

Is there any logic to this?

 

Think about it for a moment, if you spend money & time in your business, you allocated enough money & time to innovation, marketing & other core activities…. When you are preparing for MBA entrance exam, you put your time into studies & money on coaching classes & materials but if you decide it to save that money. What will happen?

But the more relevant question is are you really comfortable to spend more money? (Everybody is OK to spend more time) Not everybody is comfortable to spend huge sums of money(even if they have it)

 

Most people don’t even have that kind of money but even if they got it somehow via means of lottery or inherited from forefathers or found somewhere(really lucky) they are not  comfortable to spend more money.

 

It’s not about spending more till you go broke. Don’t take it the wrong way.

But if you have $ 5 million in your account & you are asked to spend $0.13 million on Audi R8 , will you spend it? It’s nothing compared to your net worth but if you are like most people you will not spend. You will consider it as a bad investment or you will consider it as not worthy to spend on Audi R8.

 

Remember,it’s not the question of worthiness , it’s about your mentality.

 

Consider you are a common person, if someone offers you dinner at 5/7 star restaurant, are you comfortable to go there? (It’s not for the people who enjoy the lunch/dinner at 5/7 star restaurants at their company’s expense. They will say “YES” to this)

 

It’s question of worthiness.

Do you consider yourself worthy of that dinner party? Do you consider yourself worthy of driving Audi R8?

How do you feel when somebody drives BMW 7series/Audi or Ferrari in front of you?

 

 

What you think of the person owning this?

Do you judge him? Do you envy him?

Do you get jealous of him?

Most of us go through this feeling. Only a few of you will actually appreciate the person.

 

Remember a time when you were congratulating/appreciating someone from the bottom of your heart. You will rarely remember such an incident.

Human tendency is to pull someone down to their mediocrity. Human tendency is to see someone fail.

 

Have you purchased something big from a shopping mall without looking at the price tag? When was the last time you didn’t look at the word “discount” “sale”? When was the last time you didn’t bargain for the price? (now don’t say I did it at fixed price shop)

 

I am not saying you should not see the price tag or you should not buy from supermarket but you shouldn’t be comfortable with that. I have posted an article on this. Read it here.

It goes like this, if you have a lot of money but you don’t know where you want to spend, it’s not going to come, even if it comes, it will go somewhere else because unless you know why you want money, there is practically no use of getting it.

 

You may know many people who don’t like spending even if they have a lot of money. They will most probably not attract money to their full potential just because of the same reason.

 

Do you like to give tip to the waiter when you leave the restaurant? I mean tip proportionate to your bill.

Lets say you had dinner worth 10000 bucks , are you comfortable to give atleast 1000 bucks to the waiter? Now you may say its not worth.It’s about your comfort level when you give it to the waiter.Think about it for a moment.

 

Most of us are probably are not at the level they want them to be just because they are not comfortable with success or money. They are afraid of success.

Many of us may not even know that there is a fear of success.

 

There are some people who are uncomfortable when someone appreciates them. Why? Because they don’t appreciate anybody.

 

Let’s someone gives you $ 1 million to spend, are you comfortable to spend it? If somebody asks you to put half a million in his worthy project. Even if you make sure the project is going to be a big hit, you will not put money into it. In your mind, it’s gambling.

 

Think about this, Sunil Mittal lost half his net worth from 2011 to 2012. Do you think he will not put remaining of his money into worthy projects. His net worth dropped fro $40 to $20 billion.

 

It’s all about Money Blueprint you have in your mind.

I am not saying , handing over 100 Rs to a street beggar would be a wise bet, If you give 100 Rs to a street beggar, you are not helping him, you are actually encouraging him to beg more.

 

Investors, big businessmen don’t hesitate at the thought of putting huge chunks of money into worthy ventures. Don’t say you would have also spent it , if you had it, You will never have it because God knows you are not going to spend.(It’s pretty weird but true) so you will not get that kind of money anywhere in your near  future, even if you get it either by some means or by stroke of fortune . You will never know when you have lost it.

 

It’s prosperity consciousness that determines your net worth.

 

 

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Sukrut is a passionate geek, internet visionary and a full time blogger, he has been teaching MBA students from the past two years, he is a chemical engineer by qualification,. Read my full story here

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