Have you ever won the lottery? Or have you ever gotten money you completely never worked for? How do you spend the money? We usually spend the money we didn’t work for lavishly compared to how we carefully spend money we worked extremely hard to get. This is why some people value the $100 they worked very hard to get compared to the $100 they got for free. Its always never feels the same even though they are both $100 and valued the same. You will rather squander the free $100 without regrets than do so with the $100 you worked hard for.
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Making money is not easy, except you come from wealth or inherited wealth, most of us right now are making money to survive not live the life. As an adult its almost impossible to have spare money you are not using. For instance a friend is in need and asks you to lend them $150, your reply will be “ sorry I dont have that “. But what you meant to say is something like “ sorry I dont have that to spare “. You have it, but you are not rich enough to spare it, because adults are always in survival mode. If you walk up to a stranger and ask them what they would do if they won a $10,000 lottery, their list will always be, pay off their debt, bills and squander the rest, may be some of them will say invest, but I can bet you most people will want to squander the rest. When I say squander I meant spend the money on something they have been wanting to spend their money since but can’t use their salary or hardwork money to spend on.
Money has a lot of psychological attachment, our minds are ruled by money, no matter how you want to put it, our lives revolve round money. Currently I need about $10,000 to spend on things I won’t use my savings to spend on, these things are new TV, redecorating my house and possibly going on a vacation. If I hit a jackpot right now, I would spend that money without thinking twice to do those things, the TV I want to buy is about $700 because ii want to buy a smart TV, I have the $700 in crypto investments, but I can’t spend it right now to buy that TV. Because we are in a bear market and I haven’t broken even on my crypto investment and even though I break even I won’t spend it on the TV yet, until I gain profit, because I didn’t wait 2 years to break even and sped it on a TV. The psychological part of the value attached to that money is because of the time and the work I think I have put into it, compared to how I would spend the money if I get a free $700 right now.