Have you been eyeing a certain thing for such a long time that you would be willing to splurge hundreds or thousands on it? Whether it’s the latest iPhone, a Chanel 2.55, or maybe that vacation to Europe for a long time.
While these are all things that we would definitely love to have, let’s put a different spin to that question – what if instead of spending that money on material things, you use that money to further your investment goals?
Think about it this way: By instead buying stocks and shares and getting a decent return on investment, that money can be further compounded to make you even more money! By then, you’d hopefully have more than enough to buy whatever it is you want.
This is perhaps a different school of thought from the norm – instead of instant gratification by buying whatever material goods and services now, you delay just a little longer so that you’ll be more financially stable in the future, which will then allow you to buy the material goods and services with the excess you have.
Why would we suggest you stop shopping? Allow us to list a few points here:-
- By investing in stocks and options instead of buying a Prada bag, you stand a much better chance of getting rich quick.
Let’s face it – branded bags are expensive, with costs running into the thousands. Those thousands of dollars could perhaps be used to say, buy some stocks from Starbucks (don’t we all drink Starbucks?).
Let’s put the numbers in perspective:-
- Chanel 2.55 costs USD$6,600
- Givenchy Antigona is about USD$2,000
- Hermes Birkin bags can range from USD$9,700 all the way to USD$19,000
- A typical Burberry leather jacket can reach USD$2,000 a piece, and their black label wallets typically cost about USD$350
- A typical Prada handbag is about USD$3,000
That is a very pricey bunch of items in the list there. If you could save for years to get the Chanel 2.55, don’t you think that the $6,600 can be better suited to growing your wealth instead?
By using the money on the stocks instead, you could stand to benefit from the capital gains (i.e. the price of the stock goes up) as well as receive a dividend every 3 months.
While not necessarily buying Starbucks stock, if one were to do enough research and planning, that amount of money invested could then turn into a tidy sum that could let you buy that Chanel bag at no cost but the profits reaped from the stock!
- The very act of delayed gratification makes us more level-headed and less emotional.
Most of the time, we often buy things on impulse. Remember that bag that you thought looked great and bought on the spot? How often do you use that bag now?
Again, there is nothing wrong with buying things – in fact; we want to be financially successful so that we won’t have ever to worry about not being able to afford things, right? Of course, there is a disadvantage of overspending, but that is covered in our previous article. Check it out if you have the time!
That said, by delaying gratification, it allows us to stop and take a step back and ask the big questions of ourselves: Do we really need that overpriced bag? If I need it, do I need it at this current point in time? This keeps our head level, and our overspending habits are broken.
- Your home will be less cluttered.
By delaying gratification, we can also leave our homes a lot less cluttered – fewer clothes, bags and whatever strewn all around, which will also make us a little happier when we have to clean our rooms. A cleaner room would also help in clearing your mind at the end of a hectic workday!
Ultimately, we at recommending that instead of buying a lot of clothing and bags, why not use that money to invest in stocks that can offer a recurring source of income?
Your home will be less cluttered; you’ll be well on your way to achieving financial success, as well as being a lot more clear-headed the next time you DO want to purchase a big ticket item!
The types of stocks to invest in are as varied as the number of bags and shoes there are on the market. With a little bit of careful research on the fundamentals of a company, I’m sure that you’ll be able to find the stocks that will give you a great return on investments!
If you don’t know where to begin, start by reading our investing 101 pages here!
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