The main idea of this post is based on this thought:
For many people, cash inflows to your wallet/bank account come from work.
Cash outflows or cash that come out of pocket or bank accounts come from an endless list that includes:
- Spending on groceries, takeout meals, rent, mortgages, travel, furniture, clothing, electronics.
- Expenses that include supplies, phone bills, internet bills, TV bills.
- Bad/Unfortunate events such as theft, scams, not winning bets or the lottery, unexpected bills.
- Events/Purchases that could be avoided such as Not Sufficient Funds charges, bank charges, buying stuff that you don’t really need/use, and “Keeping Up With The Joneses” type of purchases.
And so on.
The main thing to take away from this is to value your money as once it is gone it is very hard to get it back. It is not like Texas Hold’Em Poker where you can lose a lot and gain it back fast. From a math like perspective the rate in which one accumulates money is way slower than the rate of money being spent or lost.