Luxury or Security

In my half a decade of life in the corporate world, under three organizations and being in touch with hundreds of people, I have seen how people think and make choices in their lives and also their spending habits. How their early life decisions have become their big problems and rants in their current situations. How down they were that they let their dreams past them and how desperate they are in chasing their dreams but they have become prisoners of the corporate world.

The trend for youngsters has been the same, newly hired employees would always want something as a reward for their hard work. When looking through my news feeds on social networking sites, I would see some of my colleagues who now have a car or house of their own at the early stages of their life. I feel happy for them, but on the other hand I wish them luck on their decisions. I may a feel a little envious, but thinking deeper, I come to realize that they have made the wrong choices.

Yes, buying a car may be a luxury, but buying a house is a need for some but for me, both are just luxuries in the thought that given the amount of money you have been paying for the car or house or both, most of what you are paying for goes to interest. The longer you pay, the bigger the interest.

Think of it like this, you have applied for a car loan or a housing loan then a casualty happens, you badly needed money and you haven’t save up anything because you have put your money as initial payment to the car loan or housing loan. Your monthly salary is being eaten up by your loan amortizations that would take years or even decades (in case of a house loan) to end. In short, you are messed up. You have exchanged your financial security for a luxury that you may have at a latter stage of your life. You might even apply a personal loan for the sole purpose of taking care of the said casualty. This has been the wrong mentality people has been doing for generations.

The price you have to pay in exchanging your financial security for your luxurious ideals will eat you up in the long run. I have met a lot of people who have made their lives miserable a few years after applying for their loans. I am not saying this for you to avoid loans, but rather to think carefully. I am just feeling sorry for those people who have to drag themselves to work because they have nowhere to go but to the organization they are working for because if not, their house and all other properties might be repossessed by the bank or any financial institution.

If you would ask me what should be done on the money you earn during your early working days, I would definitely say that you save it on the bank and have it ready for any casualty that might come up. Worst things comes to worse, you are sure that you would have something that can be used to cover up for those scenarios. If nothing bad happens, you still have your money in the bank and by the time you have spent a decade or so working and saving, you now have come up with a business that you want to put up.

Having your own business is a hard thing to establish but could generate more than what you are earning as an employee in the long run. Many businessmen started out at their early age. They never doubted their ideals, some never pursued being an employee. The world would not run out of opportunities, you just have to discover, innovate or pursue your passion. Good employees are being recognized by the organization but good businessmen are being recognized by the world.

Starting up a business hands-on is also better than letting your investments to be managed by individuals who never worked for the money you have invested. You would be in touch with your employees and will be exposed to the challenges of your business. Once the business have gained growth through the years, you would be pleased that you have not traded any Luxury for Financial Security.

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