This article was originally on GET.com at: 4 Reasons Not To Be Stingy With Money
There are some people in Singapore who might get our ideas about saving money wrong, thinking that we are advocating people to be stingy with their money.
However, there's a clear difference between being thrifty and being stingy, and here at GET.com, we like to get the distinction right and we'll provide you with reasons as to why it's bad to be stingy with your money.
The Difference Between Thrifty And Stingy
First up, we know that usually we use thrifty in a more positive way than the term “stingy”.
According to the Merriam-Webster dictionary, thrifty means "managing or using money in a careful or wise way". On the other hand, stingy is defined as "not liking or wanting to give or spend money: not generous".
In other words, thrifty is about being smart with how you allocate and spend your money, while stingy is about being unwilling to spend and being selfish with your money.
So when you are watching your spending and making conscious effort to save money, how do you ensure that you do not fall into the “stingy” trap?
A good way is to look at the benefits of being generous, which is the opposite of being stingy.
1. Being Generous Is Great For Your Well-Being
Who hasn't heard of the proverb “the more you give, the more you get"?
Being generous doesn't mean you need to pay for your friends every time you go out, or that you need to shower everyone with expensive presents.
It can be going the extra mile to do something for someone, like being generous with your time, or paying for the occasional coffee (costs you $2 to make someone happy!) for a helpful colleague.
Being generous also helps to build up your confidence and makes you feel better about yourself. It's a cheap and easy way to happiness, isn't it?
2. Being Generous Can Help You In Your Career
It is no secret that some companies give generous “entertainment allowances” to sales and PR personnel.
This is because they understand the concept of reciprocity. By buying meals and drinks for clients, you generate feelings of friendship and reciprocity, making it more likely that your business partner will help you in future.
Even if your company doesn't provide such a budget for you, you'd know that being generous in the office (like that $2 cup of coffee) might gain you some future benefit.
In fact, a piece of advice from one of Asia's richest men, Li Ka Shing, was to buy your friends 2 lunches a month in order to expand your interpersonal circle and to learn from those around you.
By doing this, you are building up a good reputation for yourself, which makes you more influential and enhances your self-image.
3. Being Stingy Can Cost You More
Sometimes, you try to save a few dollars by buying stuff online and we all know that for those few dollars of savings you are taking a risk with the quality of the item you are buying.
This is especially true if you are buying more expensive gadgets such as second-hand laptops or supposedly “mint condition” items without warranty.
When you realise that the items you bought can't be used for some reason, you actually waste much more money compared to the few extra dollars you would have paid for something you can buy from a physical store.
Here you can read GET.com's guide to online shopping to see what is worth buying online, and what isn't worth the risk.
4. Spending Can Bring You More Value
In our bid to be thrifty, sometimes we forget that spending money is essential in order to upgrade our lives.
Think about travelling – you might consider it a waste of money or as something ostentatious. You would rather save up a few hundred/thousand dollars each year instead of going on a trip.
However, you know that there are always ways to travel in a thrifty manner and still enjoy a wonderful experience. Travelling makes your life richer through the experiences you gain and the people you meet.
You might also want to be more generous with yourself when it comes to increasing your skills. For instance, if you've always loved baking and have hesitated about going to professional courses, you might want to think about how that can enrich your life.
Other than the potential of having a side income by selling your baked goods, you would also meet others with similar interests, thus enriching your life with more friends.
If you'd like to increase your skills for free, here are 10 free online classes that you may want to consider.
What do you think? Share your comments with us below!
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