A Blog by David Andrew

July 2018

This is the question we usually tend to ask, see and sense whenever we decide to spend or splash-out our cash… hard-earned, inherited or acquired in any other way.

I am using the term “cash” even though we are pretty much beginning to live in a “cashless society”. There’s no need carry a single ‘penny’ in our pockets. We can just swipe our plastic cards and smart phones against an electronic devise at the shopping tills and the job is done! Of course, not to mention the use of the enigmatic crypto currencies. Well, that’s entirely another subject matter.

What matters is the price tag on a product or a service we intend on buying or spending.

Having said… “cashless” society, I think there’s no greater feeling than the cold hard cash in our wallets and handbags, the feeling of the crisp paper money in our hands, the shiny pound and two pounds coins. Perhaps there are those who have bundles of cash stacked under the mattress or even the floor boards. Liza Minnelli’s famous song “Money makes the world go around” or does it?

Perhaps we are familiar with the infamous expression “Cash is King” sometimes used in analysing businesses or investments portfolios. This phrase is a favourite of the American billionaire real estate investor Alex Spanos often appeared in the financial journals Motley Fool articles.

Yes, cash Is here to stay and it won’t be going away anytime soon at least not in the immediate future.

No matter whether we pay by cash or any other electronic means, we need to know much will it cost? We go to the pub, a cheap or a swanky restaurant, supermarket or retail therapy. Without a shadow of doubt, we glance at the little price tag. Yes, that’s the CROSSROAD we all encounter. The brain performs gymnastics. Millions of neurons fire, neurological battle raging inside our heads, emotions rise and fall before it arrives in making a decision. How many of us have experienced this phenomenon?

On the scale of extremity there are two types of spenders. Lavish and Miser.

Everyone else falls in-between – “Inbetweeners” not referring to the 2008 Brit comedy sitcom.

The inbetweeners are the ones who come to a crossroad when making decisions on their spending depending on what, where and how much.

However, there are two types of inbetweeners

1. Wise Spenders

2. Victims of Spend and Regret

1. Wise Spenders know exactly the difference between needs and wants.  And they happily buy and spend accordingly. Besides just buying fancy goods, they also invest in personal growth and development, training, health & wellbeing and may generally feel charitable. They have a greater leverage in making financial decisions. They feel good, and proud, and find great value on what they buy and spend.

2. The Victims of Spend and Regret are those who spend money on impulse, duress or just to “Keeping up with the Jones” They spend on things and often don’t feel satisfied. The instant gratification and satisfaction is short lived. The novelty wears off. They feel regret.

Some even blow their wages before the weekend is over. Money slips like water through their fingers. They end up borrowing money from wherever they can. They end up feeling miserable often spending what they can’t afford just to feel better. They end up being in debts and financially struggling.

Some people may never give a thought on getting sorted until they find themselves in the deep end. Thinking of investing in personal growth & development, health & wellbeing doesn’t show up on their radar.  Any suggestions and recommendations are viewed with scepticism and often ridiculed.

Well here’s the choice we have…

• Lavish

• Miser

• Inbetweeners

o Wise Spenders

o The Victims of Spend and Regret

Where do you see yourself and what action are you prepared to take?