Just Keep Buying

01Don't waste your money, or it'll be gone before you know it

Nick Maggiulli, in his book, gives us a real-life example of how not managing your money wisely can lead to financial ruin. He tells us about his grandfather who, despite having a steady income and not many expenses, ended up penniless. Why? Because he spent his money on horse racing instead of investing it. If he had invested that money, he could have been a millionaire. But instead, he spent 26 years of retirement with no money. This story is a wake-up call. It shows us how easily money can slip away if we're not careful. Think of it like a bucket with a hole in it. If you don't plug the hole, the water will eventually drain out. The same goes for money. If you spend it carelessly, like on regular nights out or pricey hobbies, you'll soon see your bank balance shrinking. So, what's the solution? Maggiulli suggests two things: saving and investing. Saving is the first step because you can't invest money you don't have. But how much you save depends on your financial situation. It's important to enjoy your hard-earned money, but it's also important to save some for the future. But how much should you save? Maggiulli has a simple method. Estimate how much you can save in the next year (your expected savings) and how much your investments could grow in the same period (your expected investment growth). If you can save more than your investments can grow, focus on saving. If your investments can grow more than you can save, focus on investing. This method helps you figure out where to focus your financial efforts. It's like steering a ship; you need to know where you're going before you can set a course. In this case, your destination is a secure financial future, and the course is your savings and investment strategy. If you find saving and investing a bit scary, don't worry. Maggiulli's book is a great guide. It answers common financial questions and gives practical advice. By understanding and applying these principles, you can make sure your money doesn't disappear but grows, leading to a more prosperous and secure future.