I came across this great article about “money management”, and it made me ponder. All of us earn money, but how many of us know how to spend (and save) it. I know of so many people, who have grown financially but they still know zero about money management. Earning money and managing money (to regenerate it) are two different aspects, albeit corelated. Money is a feeling, but more than that its a unique energy which needs to be channelized for optimum efficiency in one’s life. Having said that, lifestyle is not money IMHO.
Anyways, here’s an excerpt from the article I read:
… beyond a certain point, any amount will not matter. If you are satisfied with amount X, the pleasure you derive from amount X times 10 or X times 100 is no different. In economics, this is known as the theory of diminishing marginal utility. Thereafter, for each additional million you make, the excitement reduces.
The secret is, know your critical or optimal level. Once you know that, you know that, no matter what, life is never compromised on anything. You will have ample. And you will love whatever you do, feel complete and have an optimal level of satisfaction and accomplishment.
Anything beyond your critical level is money you can splurge. Critical level is that quantum of money you need to have. Aim to touch that threshold. Else, nothing will change, life will be just the same.