Is money good or bad is an ongoing debate, but today a much bigger question needs our attention. What are the requirements of the money you have?
As young individuals, we must understand the relevance of money. We know our parents and guardians will provide us with the money, but what are our relevant requirements? Identifying and analysing the requirements help you ponder if your money is enough. The answer is interdependent.
How do you define what is enough? Is what you require determined by how much you need? For instance, do you need one set of sketch pens or five? Two pairs of shoes or more? One dress for your birthday or three of them?
Eventually, it is the need that makes the difference.
Needs are constantly evolving depending on various factors like seasonal change. Like extra layers for the winter season or raincoats/umbrellas for the monsoon season. From being a baby to becoming a parent, the needs keep growing.
Who defines the needs?
Some say needs are basic worldly requirements that help sustain self and family. But it varies from person to person. Furthermore, once we acknowledge the need, the vital question is why do we need the money? Is it essential for our survival, or is it something more than that?
We should look at these questions. Reflect upon them and converse with people who would know more about it.
The good thing is, with the growing availability of information and emphasis on the importance of financial literacy, the present generation is more aware of finance. Learning about money management at an early age is necessary, but defining your needs is essential too.
Ask yourself if you need a certain amount of money, what is it being used for, and how necessary is it for you? Why do you personally need cash? Is it merely survival support for you, or are there other factors driving you towards it?
So observe, ask, and analyse the above questions to develop a better awareness of your money. Don’t just learn or wonder about managing money but rather be mindful about the money.
Practice money mindfulness over money management. This is a new form of financial literacy, and you have a chance to nail it early on.
CEO & Founder, Pluskul