Never go to grave with 80 percent of the money you earned

Financial planning is not only about earning money but it is also about deciding on how much we should be holding and how much we should be spending. This is something that I have heard from many financial experts. Many people in this world would like to grow their financial status and keep accumulating a lot of money. To build that money they end up sacrificing their luxuries as well. At the end of the day, they go to their grave with almost 80 percent of the money they have earned with so much restriction in spending the money.

Sometimes the discussion is not about how much net worth a person should have but they also think that it is about how much they are going to be leaving for their kids or the next generation. Not having fun today and saving up everything we earn is not a good strategy and it will not even give us peace of mind for us.

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Let the children earn for themselves

The money we earn throughout our life should mostly be for ourselves or the good deeds we do. We should be leaving the children to earn for themselves. If we had the exposure to be wise and earn a lot of money, all we should be doing is giving the same exposure to the kids as well. The kids should know how to start from scratch and at the same time how to be humble with lots of money too. Both are very important. Some rich people fail to teach their kids how to be humble and earn money for themselves. They also give all the luxury to their kids so that they spend all the money their fathers and forefathers earned and ultimately end up leaving nothing for the next generation and not even the knowledge they have inherited.

Spend enough money when we live and enjoy the life

Earning is just one part of life, spending the money we earn is also very important, especially on things that would give us happiness. Accumulating more money and not spending it on any fun activities is also not good. Ultimately we would end up having a boring life and nothing to think about when we grow old. Only if we spend the money on nice things, we will have fulfillment.

We have to also be very careful that we are not spending the money lavishly on things that don't do any good. Spending money on good deeds and spending money that gives us fun and enjoyment is okay to some extent but not to an extent where we end up depleting everything we earned and not spending money on things that would take us on the wrong path.

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Emergency fund is important but not 80 percent

People are usually afraid about spending all the money. They think what if there is nothing left when emergencies? My idea usually is to have some decent money for an emergency fund and spend the remaining on wise things. If we are very old and nearing our graves, then I would say that it is wise to plan our finances very well. We have to keep a bare minimum for our old age needs and then spend the remaining on other things. From a very young age, this thought should be there where we don't keep too much for ourselves that we may not even use. We can take care of the bare minimum expenses for our kids but after they grow up, we have to let them take care of their own needs.

Never spend too much on unwanted things

When we say that we have to spend more than 80 percent of what we earn before going to the grave, it doesn't mean that we bring a suitcase of money and keep making paper boats in river Ganga. That's stupidity. We have to be very careful about where the money is being spent too. We have to spend but at the same time, we have to also be sensible about our spending.

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