Earning, Spending, Saving and Investing…
As inflation continues to rise, everyone asks each other this question: “Can you save any money?”
I, for instance, try to put some money aside whenever I get the chance. The first rule of saving is to know the difference between needs and wants. This way, you can ensure that every penny you spend returns to you as value. It does not necessarily have to be monetary value; it can also be something that is beneficial to your welfare and that of the society. However, sometimes it is not easy to distinguish between needs and wants. But, you can start by asking yourself the following question when purchasing a product: “Will buying this really give me a sense of satisfaction?”
But, not every feeling of satisfaction means use or benefit. The important thing is to purchase something or invest in something that will help your welfare and well-being. Unfortunately, today’s economic circumstances force people to spend more than they earn. So saving is not an easy thing to do for many people.
What should we do when we manage to save some money? When you have extra money, you should first decide whether you will spend it on your real needs or let others to pressure you and force you to spend it on unnecessary things. The whole point is to be able to tell the difference.
Professor Sadi Uzunoğlu recently said in an article that people who earn less than TRY 100,000 per month cannot be considered middle class. For those living in Istanbul, this figure should be TRY 150,000. Even this income may not be enough to save money.
As I said in my previous articles, with their income, today’s middle class today cannot buy property. The only places where they will feel happy and find social satisfaction are restaurants and cafes. It is not possible for a household with a monthly wage of TRY 150,000 to buy a flat in Istanbul, especially if they are raising two children. If they move far outside the city to be able to afford housing, then they will have to buy a car, in fact two cars for each spouse, not to mention extra fees such as school transport fee etc. Therefore, for the time being, middle-income earners should not make any investments to maintain their current financial situation.
Another problem is that, in Turkey, no one knows how much money a counterpart or a co-worker makes. The reason for this is that,regrettably, salaries are determined arbitrarily. Well, this is a major injustice in the workplace.
“ What are your salary expectations?” This is one of the questions commonly asked in job interviews. The purpose of this question is to make the candidate feel bad. If the candidate asks for a big salary, he or she might risk being seen as ‘greedy’, if asks for less, their potential employers will think that s/he does have any idea about that line of business. Human resources are evolving into a better place in Turkey, but its recruitment methods are still quite conventional.
“Cash or Credit?” you are often asked when shopping. We are living in a country where interest rates are very high. If you have promised to pay back all your credit card debt and you are not going to break this promise, you can put the amount you spent in an interest-bearing account to earn a little money, of course, provided that you pay off your credit card dues at the end of the interest maturity date. Or, you can purchase an investment fund, as long as you make the payment in full and on time to avoid high credit card late fees.
In the past, people would use their salary efficiently. They would spend cash today, and pay by credit card tomorrow, when the salary is about to finish. Sadly, today the credit card has become an instrument of ‘spending tomorrow’s income today’.
“What is the best investment?” Well, the best investment is the one you make in yourself. Money can help us improve our flaws, imperfections, knowledge and manners. However, spending money without having a certain intellectual capacity leads to inefficiency. If I were to choose between a luxury car or a trip to the poles, I would definitely not choose a luxury car. Besides, you get used to, even get bored of luxury things very quickly but you never forget and always cherish a travel experience.
We must make sure that every penny we spend return to us as value and add value to our lives. We must be in control of every penny we spend. Otherwise, we become a servant to our money, not the other way around.
Hoarding the money recklessly printed by central banks will certainly not help us. Therefore, instead of hoarding money, it is important to collect good memories, share them with other, add value to our lives, develop our skills, seek further knowledge in different disciplines, and ensure that we benefit from every penny we spend. Also, we should avoid trying to make our loved ones happy by spending more than we can afford, and no parent should try to test their children with poverty when they have enough money to give them. Remember, children do what they see at home. Whether you are rich or poor, if you behave properly at home, be a good role model for your children, the children will also behave properly because they learn by copying you.
I do not think that these answers will satisfy those who were expecting me to answer their financial questions. But remember, if you are not self-sufficient, no matter how much you earn, it will never be enough.
