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Published on April 17, 2008

When asked why they had not started saving early so that they would have enough money to make their dreams comes true, if not now then at a later stage, many would say: "I don't even have enough to spend month by month, not to mention save."

Many people think you have to earn a lot to be able to save.

Actually there is never enough. What is enough? Bt1 million or Bt2 million or Bt10 million a year?

Flip to the other side of the coin. Money management is not just about money you earn. It's about getting to the root of why you spend the way you do.

It means no matter how much your income grows, you will never be financially independent unless you fix the root of your spending habits.

We all have the tendency to put off tomorrow what we can do today.

Many people overestimate tomorrow. We often take time for granted and come up with excuses, like "I'll start saving tomorrow, or next month, or next bonus, after New Year, and so forth."

It will probably never happen because you will keep wanting more things and spending more money. And you will end up with "no extra money to save". Tomorrow, indeed, never comes.

Spending is a feel-good experience. It's the most popular therapy in the world, especially for women.

Many people go shopping when they have a bad day. It's to relieve stress.

In a materialistic world, the ability to spend money makes you feel powerful because it allows you to acquire what you want.

Some people spend money to repair a relationship. For example, parents buy expensive toys for their children because they have not spent enough time with them.

Sometimes, you end up buying things without thinking you were going to.

Just because there is a sign saying "sale" and suddenly you feel that you have to buy to save money, even if you don't need those items at all.

Or it's just trendy. Name it, the latest cell phone model, latest sneakers, membership at the newest gym and so on. The need to keep up with trends has also become a sign of success.

We also spend money because of the need to meet unreasonable expectations of family and friends.

Do you have a friend who would almost always buys gifts for all her friends when she goes abroad, or even upcountry?

One might think it's just small tokens. But it can end up to be a substantial amount.

At worst, people abuse their credit cards.

People don't realise that credit card debt is one of the most expensive debts to take on.

People separate the pleasure of buying to the painful feeling of making the payment later on.

In reality, the purchase cannot happen without payment.

Some people forget that they have to pay later when they use cards.

The next thing they know is they end up with a big amount of debt which keeps on growing.

If you are always paying off yesterday's purchases, how will you acquire what you truly want in the future?

Is it time we stop spending and start saving?

Wilf Blackburn is the president of Ayudhya Allianz CP Life.