Weekend Musings on ILLUMINATION — To Save or To Spend, it all Depends.
We hear the following all the time.
“We have got to SAVE ~ for the Long Term.”
“We have got to SAVE ~ for our retirement.”
Have you ever wondered if Earning-to-Save is the only logical cycle in Life?

The funny thing about saving is not the lesson per se but the way that message is delivered. It almost, always, assumes, that we are juveniles and we have money problems. Truthfully, while almost everyone grapples with money issues, not everyone has a savings problem.
Yup, you got that right.
Not everyone has a savings problem.
In fact, the reverse could be observed in some countries. The National Savings Rate for Singapore between 2007–2017 ranges between 48% — 50%. Switzerland’s number is 34% in 2017. We have savers all around the World. So chill and rest easy here.
While some people struggle with having enough to save, others have to think about productive spending. The keyword here is “productive”.
“Productive” spending has to be distinguished from “Discretionary” spending, in particular the incessant chase for material possessions as well as symbols of success. Luxury goods are great to have and there is definitely a plethora of reasons why they command a premium. Symbols of success — no matter how abstract — makes us feel good. That feel good fact in itself is the premium.
I do not debate the quality premium that comes along with great items.
I question the need for incessant purchases.
Is there an actual need for 7 branded bags? 3 Ferraris?
Really?
Or that bungalow sitting by the edge of the cliff overlooking that far horizon where the sky and sea unite?
I don’t judge and personally, I do think there are better use for our hard-earned money.
For instance — Personal Development.
Personal development is pretty underrated. Most people cringe when they think about a $1,000 seminar of Sales Techniques. On the other hand, they are ever ready to handover $3,000 an overseas trip that promise them an experience of a lifetime in 2 weeks.
I do think that our personal development matters.
In fact, when we do deploy our savings to upgrade ourselves — Our incomes rise accordingly. When we apply what we learn, effectively we earn.
The higher the disposable income above basic expenditure, the higher our savings rate.
Then, as our savings rate increases over time, we can start thinking of investing which accelerates our way out of the open employment market if we do not enjoy what we do. It takes time to amass enough financial ammunition to invest at a volume that makes meaningful contribution in terms of our investment income on the side.
A 1% annual dividend yield based on $10,000 initial capital outlay is far more substantial than a $1,000 outlay. I trust you understand the numbers game here.
As the title header suggests, there is no standard script for saving or spending.
That said, I do think there is an overarching Principle we can apply.
Unless we can deploy our cash-at-hand to develop ourselves for the better professionally and / or personally, that hard-earned cash stays in the bank.
And how we approach our personal and professional development can be summed up into 2 words.
“It depends.”
It can be elaborated using 7 words.
“It depends on your goals in Life.”
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About the Author:
As a Consultant by training, I believe in making the complex simple.
Because simplicity adds value.
Simplicity helps us gain clarity, and clarity helps us to grow.
And if we are not growing, then what’s the point of anything else?
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