Unnecessary buying delays your retirement

We have all been told by our elders – parents and teachers in particular- that ‘Time is Money'. What is the origin of this phrase?

‘Time Is Money’ is an aphorism that originated in ‘Advice to a Young Tradesman’, an essay by Benjamin Franklin that appeared in George Fisher’s 1748 book, The American Instructor: or Young Man’s Best Companion, in which Franklin wrote, ‘Remember that time is money.’

Of course, Time is Money, and I would like to talk about how you should look at anything that you wish to buy (for use, I presume).  I do not own a car and I use Ola or Uber whenever I need it – but mostly I use the public transport of Mumbai.

My expense on Ola is about 30% of what I would spend on a full-time driver. I am not even getting into the cost of the car, fuel, maintenance, insurance, etc. It takes a lot of effort for a salesman to get money out of me.

When you ‘buy’ things, you are paying money – but remember ‘Money is Time’ is also true. When we buy things we pay for it in TIME. This unnecessary list of things that we buy is ACTUALLY delaying our retirement.

Are you willing to pay this price? Do you want to retire at 52 or at 65? That is the kind of cost of ‘delay in retirement’ The more ‘things’ that you buy the more you delay your retirement.  When you do not buy unnecessary things, you save money, then invest it. 

When you say ‘No’ more often – to complicated financial products, you save more money, and all that saved money can turn into investments. When the investment is made sensibly that investment becomes ‘more money’. 

This ‘more money’ allows you to buy back time – which gives you ‘Financial Independence’ that leads you to ‘Retire Early’. Very fondly this is called ‘FIRE’.

The most difficult aspect of valuing your time is the mind-set shift, especially if you make it feel like you’re depriving yourself. When you stop buying unnecessary things it soon becomes a habit.
Many of your friends will stop calling you to expensive eat outs –as they have got used to your ‘nay’ saying. Even you may be wondering about ‘Ok, but when can I indulge myself in some of these things’. However, with time you understand the amazing ‘Joy of Enough’ and you may never buy unnecessary things again.

Most people who understand all this, realise that the money gained by not buying something, you could have bought something else. Thus like a friend says “I see the Luxury Holidays, Expensive cars, Designer watches, Cuff-links, smell the perfumes…WHICH I DID NOT BUY ….when I see my portfolio!
If it is so simple…. Why are many people not doing this?

Well, it is like dieting. It looks very simple, but not everybody can do it. People can understand the pleasure of making a R 10,00,000 downpayment can make you feel good with a big BMW standing at your gate.

However, when you invest R10 lakh in a mutual fund, it is not clear what will happen to it. So, we frequently choose the car over the investment, and delay the FIRE!

PV Subramanyam
writes at www.subramoney.com and has authored the best seller ‘Retire 
Rich - Invest C 40 a day’

We have all been told by our elders – parents and teachers in particular- that ‘Time is Money'. What is the origin of this phrase? ‘Time Is Money’ is an aphorism that originated in ‘Advice to a Young Tradesman’, an essay by Benjamin Franklin that appeared in George Fisher’s 1748 book, The American Instructor: or Young Man’s Best Companion, in which Franklin wrote, ‘Remember that time is money.’ Of course, Time is Money, and I would like to talk about how you should look at anything that you wish to buy (for use, I presume).  I do not own a car and I use Ola or Uber whenever I need it – but mostly I use the public transport of Mumbai. My expense on Ola is about 30% of what I would spend on a full-time driver. I am not even getting into the cost of the car, fuel, maintenance, insurance, etc. It takes a lot of effort for a salesman to get money out of me. When you ‘buy’ things, you are paying money – but remember ‘Money is Time’ is also true. When we buy things we pay for it in TIME. This unnecessary list of things that we buy is ACTUALLY delaying our retirement. Are you willing to pay this price? Do you want to retire at 52 or at 65? That is the kind of cost of ‘delay in retirement’ The more ‘things’ that you buy the more you delay your retirement.  When you do not buy unnecessary things, you save money, then invest it.  When you say ‘No’ more often – to complicated financial products, you save more money, and all that saved money can turn into investments. When the investment is made sensibly that investment becomes ‘more money’.  This ‘more money’ allows you to buy back time – which gives you ‘Financial Independence’ that leads you to ‘Retire Early’. Very fondly this is called ‘FIRE’. The most difficult aspect of valuing your time is the mind-set shift, especially if you make it feel like you’re depriving yourself. When you stop buying unnecessary things it soon becomes a habit. Many of your friends will stop calling you to expensive eat outs –as they have got used to your ‘nay’ saying. Even you may be wondering about ‘Ok, but when can I indulge myself in some of these things’. However, with time you understand the amazing ‘Joy of Enough’ and you may never buy unnecessary things again. Most people who understand all this, realise that the money gained by not buying something, you could have bought something else. Thus like a friend says “I see the Luxury Holidays, Expensive cars, Designer watches, Cuff-links, smell the perfumes…WHICH I DID NOT BUY ….when I see my portfolio! If it is so simple…. Why are many people not doing this? Well, it is like dieting. It looks very simple, but not everybody can do it. People can understand the pleasure of making a R 10,00,000 downpayment can make you feel good with a big BMW standing at your gate. However, when you invest R10 lakh in a mutual fund, it is not clear what will happen to it. So, we frequently choose the car over the investment, and delay the FIRE! PV Subramanyam writes at www.subramoney.com and has authored the best seller ‘Retire  Rich - Invest C 40 a day’