To Shop or To Save

Yesterday, I got into a lengthy conversation about a pair of shoes I can afford but costs  most of a month's salary. It involved an Italian label, a pair of heels, my emergency fund savings, and self control. I constantly talk to an older fellow (who is more affluent than I am, and with a kid) who thinks its normal to buy clothes and shoes and food. These are needs, he said. I also mentioned a query on how people in the fashion industry afford their lives. Especially when you know how much they make and how much they spend on shopping (factor in online shopping, shipping, and customs duty.) I can't keep up with their lifestyle so I've decided to be frugal. Brown paper bag-ing my lunches, and walking short distances instead of cabs.

"You work hard, its your money, you shouldn't deprive yourself of things you want. You're not stupid to spend all of your savings on shopping. I don't get why you didn't buy it... *some more irrelevant things here* oooh... cause for me its a normal that I buy food and clothing." -said the older fellow.

I have a goal. And that goal is greater than my want to be the next Imelda Marcos. Although pricey heels will retain some of its value through out the years, it will still depreciate over time. The more you wear, the longer you have it, the lesser its value will be.

I don't think he understands what I'm going through. Although a fellow Filipino, he lives in a first world country with a higher paid high skill job. He has his own practice. He owns several real estate properties. He was born to an affluent family with significant participation in the government and military. (Remember what i said about parents, in my previous post, to be rich?) These things he accumulated over time.

Sure, he has always been accustomed to splurging. But I was raised in a more frugal manner. I studied money and business and how it works. I've been in several finance seminars and classes and talks. So when one thinks of spending I think of saving. And when I think of splurging I think of ways how to afford that.

Saving is not depriving myself. I need shoes, but that doesn't mean it has to be another pair of Ferragamos. I need suits, it doesn't mean it has to be worth more than thirty five thousand a piece ($750.) There is a giant difference between a want and a need. I definitely want a $750 designer suit, but I don't need one.

People in my country can live for three months with that amount of money. Even if I worked hard for it. It doesn't mean I can afford walking around malls and buying things that cost as much at a drop.

When asked why I don't purchase my wants, I respond, "because I don't need it." And also, "because I think about my future."

I dont imagine myself working until I'm 60 and eligible for retirement. I imagine myself leisurely enjoying my early retirement. And you have two ways to get that 1) ask for your inheritance early or 2) you plan ahead.

I prefer the latter. Really think about your wants and needs.

Xo,
Paula