People love to spend the money they make. It’s much like a reward for the hard working hours they spent making it: when they finally buy that pair of shoes, that bike or laptop, when they finally fund their Euro Palace account and go for the jackpot – whichever their heart’s desire would be.
Why the Euro Palace, you might ask? Why mention a place where you spend money non-stop when you try to make a point about conscious spending? Well, because the Euro Palace, unlike some similar games millions of people play, is a much better investment. Playing there doesn’t come with any guarantees, but it comes with a chance of becoming filthy rich in a very short time. The Euro Palace offers a wide range of progressive slot games, some of them with top prizes with a real potential to change lives. Besides, it can teach its players important lessons about money management – which is very important if you plan to adapt your spending habits to reality. And if you add the entertainment value, the investment is becoming even better.
The point I’m trying to make is that money can be spent in two ways. One of them focuses on simple things and everyday living. The other one is the smart way.
Spend for the future
Setting aside even a small amount each month can have a massive impact on your future. Spending all you make on everyday items won’t improve your life int he long run. Buying those pairs of shoes, jeans, laptops and bikes might feel great at the time – but all these items start losing their value the moment you take them out of the shop. No matter if you’ve never used the shoes – you can’t sell them for as much as you paid for them. Smartphones, the most desired gadgets of our time, suddenly become “obsolete” the moment the next model hits the market.
Whenever you prepare to spend, especially when it comes to major purchases, bear in mind the impact said purchase will have on your future. This way you can make the most of the money you earn – and save – and help yourself improve the quality of your life in the long run.
Consumer products depreciate in time
The majority of consumer products are not built to last forever. And this shows best when you take a look at their resale value.
Depending on the make and model, a new car loses about 10% of its monetary value the moment you leave the dealership. In the following years its value keeps decreasing, no matter how good care you take of it, ending up being worth under half of what you paid for it by year 5. Electronics lose value even faster. On one hand, there is the wear and tear caused by everyday use, on the other you find the constant rush to release a newer, faster and fancier generation – which instantly reduces the market value of “last year’s” flagship. But homes, toys, sports equipment, basically everything else keeps depreciating in time.
So what should I invest in to maintain value in the long run?
Gold and art sound like an obvious choice – but most of us have nowhere near the funds to do that. Instead, you can focus on possibly “intangible” things, like your health, or higher education – and maybe even experiences. Thinking of money rather than a tool instead of a goal can help you change your perspective about it and make a better long-term decision.