Numerous authors have written about money/property and the ways in which they are spent. “Every penny earned is a penny saved.” Micawber and Valluvar, both created by Dickens, advocate for the virtue of frugality.

Bacon discusses how humans spend money in this article. One day, money and prosperity will be spent. Individuals invest money to improve their social standing and standard of living. Additionally, money is spent on charitable, social, and other similar beneficent causes. When spending huge sums of money or investing a large portion of one’s wealth, one must consider the rationality of such resource allocation. Spending for one’s country’s sake or for noble and lofty causes might be defended as justifications.

Daily costs of a seemingly routine nature must be made in proportion to one’s income and assets. No money should be spent for supporting dishonest and immoral agendas. Employers must never spend money on dishonouring or humiliating their employees. Expenses must be less than or equal to income.

Ideally, expenses should equal about half of one’s income. To become wealthy, one’s costs should equal one-third of one’s income. Being calculative and prudent with one’s spending is not a bad trait. A smart policy is to keep an eye on income while spending.

Some people violate these norms of prudent spending not simply out of laziness, but also out of dread of sadness. Inevitably, their reckless spending results in their financial collapse. If a bankrupt man wishes to rebuild his finances, he must delegate the task of budget scrutiny to someone who can do so objectively. A person cannot examine his or her own spending behaviour objectively, as he or she will be biassed. Even the ‘Finance Manager’ hired to rehabilitate the finances must be replaced on a frequent basis. This is because a freshly hired Finance Manager is likely to be extremely vigilant and strict.

A person who is too preoccupied to manage his or her own business, property, or fortune must delegate this responsibility to an outsider who is more qualified. If a person overspends on anything, he should reduce his spending on other products to offset the extra outflow of funds. For instance, if someone spends excessively on meals, he must cut back on clothes spending. Similarly, if a someone spends excessively on furnishing his living quarters, he must spend significantly less on establishing his stable.

A man who spends irresponsibly is doomed to fail sooner rather than later. As a result, he may act rashly in selling his estate or liquidating any such asset in order to avoid creditors. Such rash behaviour is extremely detrimental to his long-term interests.

The man who suddenly becomes debt-free will revert to his old tendencies of lavish spending. This is a catastrophe. On the other hand, a debtor who steadily pays off his debts with modest reductions in his expenses will be truly pleased in the long term. This is because the period of restrained spending will alter his lavish spending habits and instil in him the virtues of economy and caution.

Finally, it is far less embarrassing to make little adjustments to one’s spending than it is to declare bankruptcy and incur condemnation from society. A man in such straits may resort to petty and frequently criminal means of obtaining money. This is the worst-case scenario. A man who avoids such pitfalls prudently will earn the society’s esteem.

Newsletter Updates

Enter your email address below to subscribe to our newsletter