Upgrade your ability to understand and use your current location and trends
Many people may say, "I'm good at spending money!" However, no matter how hard you work to earn money, if you spend it incorrectly, you will never be able to save money, and increasing it will be a dream beyond your imagination. In order to improve your money sense, it is essential to train yourself in how to spend it.
Even when it comes to spending money, there are three types of spending: "waste," "consumption," and "investment." "Waste" is simply wasteful spending, "consumption" is spending that is essential to life, and "investment" refers to spending on things that will increase in value in the future or that will increase your personal value. The first step to learning how to use money wisely is to clearly define and be aware of which of these categories the money you spend every day falls into.
This time, we've divided awareness into four levels based on tendency, but these can definitely be improved by increasing your financial literacy and changing your awareness on a daily basis. Figure out what level you are currently at and aim to level up.
What type are you? Check your financial awareness level
LEVEL 1 Wasteful type
It's easy to get carried away by information. You don't know what it's being used for!
The "wasteful" type, whose wasteful spending habits are habitual, spends money on things and services they can live without, only to regret not being able to use them or getting the value they deserve. It's natural for them to impulsively buy something they want, and they often end up spending more than they have. They are easily fooled by slogans like "buy one, get one free" and tend to quickly believe online reviews.
If you are one of those people, the first thing you need to do is to get into the habit of proactively thinking about whether that purchase is really necessary for you right now. Start by tracking and reflecting on how much you spent on what each month.
LEVEL 2 Consumption Type
Spending control is perfect. I spend money where it's needed.
"Consumption" refers to expenditures that are essential for daily life, such as rent and food. These are things that provide convenience and satisfaction in proportion to the amount spent. This type distinguishes between "necessities" and "wants" and can shop calmly and without waste. However, if they try to cut consumption to the bare minimum in an overly conservative and stoic way, their prioritizing frugality may become too obvious, and they may end up losing the trust of those around them.
It's also important to weigh the benefits and losses of saving and make careful decisions. You can take your savings to the next level by spending money on things other than consumption, such as experiences that enrich your life.
LEVEL 3: Insightful Type
Discover the true essence of goods and services. Spending money revitalizes your life.
Even within the same category of "consumption," this type of person is able to determine the intrinsic value of goods and services by their own judgment. Because they can make quality purchases at prices better than market value, spending money makes their lives more vibrant and has become a habit.
Because they regularly gather information and have high literacy, they are able to compare their needs with the value of products and make the best choices. They also consider experiences and experiences to be personal assets, and are proactive in spending money on things that will improve their skills and enhance their sensibilities. If they can also adopt the mindset of "buying time with money," such as outsourcing housework, their quality of life will improve even further.
LEVEL 4 Circulation Type
Angel type that gives to others. Long-term stability and giving back to society.
You have no problem managing your own expenses. You have the knowledge and ability to upgrade your life by using money, such as through investments. You can make decisions about how to spend money based on your own values, without being influenced by relative values such as "it's good because it's trendy," and you will be more likely to invest money in time and experiences that enrich your life.
They will have a stronger desire to provide new value not only to themselves but to society and their community, and through this experience they will learn the cycle of "giving" to others, enriching both themselves and society. Money will naturally come to them when they have a gift-giving spirit, so once they reach this level, they will almost completely eliminate financial worries in the future.
