Hot money in hand makes different people behave in different ways. There are misers who would never love to part with the money; there are calculated spenders who plan and account every penny they spend to avoid wasteful spending; and there are spendthrifts who feel restless till the money in hand is exhausted quickly in useful or wasteful ways.
It is not practical to ensure a 100% wasteless spending of money always. We all have our weaknesses, temptations and instantaneous loss of common sense that lead us to spend money once a while in wasteful channels and we regret later for having succumbed to such momentary weaknesses. A patient understanding of the effects of wasteful spending will definitely keep us in good stead when we come across another temptation. Let us now see some such effects of wasteful spending:
a) Unwanted accumulation of junk
Many of us spend wastefully on short living “latest electronic gadgets”, latest fashion wear and decorative and eye-catching artifacts. Anything too latest has a tendency to become outdated too soon. What is prestigious to own and boast off today loses its sheen and prestige value tomorrow. Result? We throw them away into the cup board and go about shamelessly wasting money on newer attractions.
Over a period of time, the house becomes a junk yard. Most of the items have no resale value and they can’t be discarded even in garage sales.
b) Constant stress on earning more money
A penny saved is a penny earned. On the other hand, a penny spent uselessly forces you to work more to earn more – for two reasons: one, you need your pennies for spending on essential things, that you could have obtained if you had not spent them money uselessly; second, your habitual spending on useless things create you a craving for more money for useless spending in future too.
This constant craving for money makes one restless in life. At one end, you want to “enjoy the life in full” by spending; at the other end, you slog your life out to earn that extra money. This naturally creates tensions and contradictions in life, leading to loss of mental stability and physical health.
c) Debt trap
As long as your spendings are within your earning limits and you have a regular saving habit, some amount of wasteful spending can be tolerated. But, if wasteful spending becomes a habit, then over a period of time, spending beyond earning limits becomes an acceptable lifestyle for you. Credit cards come in very handy to lead you to overindulgence. Like an undiagnosed cancer, the debt keeps accumulating in your life and the day will not be far off when you wake up to the dangerous reality of a financial ruin in your life.
d) Health hazards
Wasteful spending in junk foods, in consuming aerated soft drinks, in dining out with friends, in frequent parties of celebration (say, birth days, valentine days, to celebrate a promotion in office etc) lead you to uncontrolled and indisciplined eating. Poor eating practice is one of the prime causes of health breakdowns.
Getting caught in debt creates lots of mental agony and its consequence shows in physical health. High blood pressure, acidity, peptic ulcer, migraine, physical fatigue etc are some tell-tale signs of loss of physical health on account of mental stress caused by debt.
A very ancient Tamil poem states this: “If a person’s expenses exceed income, over a period of time, he loses his respect, loses mental balance, gets tempted to stealing, paves way for a rogue’s life in the next seven births, and he tends to look a bad person in the eyes of good people”. Hence, beware of wasteful spending.