Greed and profligacy

From the book Vadim Huzin "Hand Life»

- Where is the line? - Ivan thought again. - Where is that damn line between extravagance and greed? Live all your life, considering penny cents folding of the ruble, the ruble from ten of ten hundred, etc., while others take and immediately earn a thousand, nothing to think and then without fear of being without money it spends. And surprisingly, receive money again!

"After all, I honestly tried to limit their spending - says Ivan - three months sitting on bread and water, did not go anywhere, do not buy anything. And what? Many are left? No. Noticeably, of course, that the money left, but what it is. Victor won per transaction made as much money as I have severe limitations amassed three months. And he, as if nothing had happened and went their spent immediately. It seems his wife bought a new fur coat, just for the soul. He seems to be all about the money the head does not hurt.

But people say that the rich grasping, saving, thrift, do not spend a lot of money. And in fact, what happens? Guzzle three throat and they say that they are cheap ».

"It's not take it anymore! - Ivan said aloud. - We have to go to Victor, he is a man intelligent, experienced, rich, let him explain to me ».
- Hello, Victor, Hello, this Vanya. What are your plans for the evening? I need to see you, have a conversation.
- What is it, friend Vanya?

- So far nothing, but if it goes, it will soon exactly something happens.
- You got a problem? Love? Relationship? Who is she?
- I would rather say "who they are».

- Oh, two of them!
- No longer two, a lot of them. But I have a few.
- I do not understand what you mean?

- Yes, I have a great love of money, but that's a relationship with them does not add up. Help an old friend to understand, tell me where the line between greed and extravagance. Why do I save per month for as long as you spend in one trip to the store?

- Are you about it! - Smiling, said Victor. - Then it is clear. Well, this case is that it is not urgent. Come right now.
Ivan immediately called a taxi, his car had still not there, and went to Victor. Driving up to the house of Victor, he saw a huge new luxury SUV, which went Victor. Ivan climbed into the house. Victor met him in the living room and offered to sit closer to the fireplace. Conditions had to talk heart to heart.

Ivan began to ask questions, and Victor started slowly, carefully weighing and pondering meet Ivan. At some point, he did stop for a few minutes to find a clear analogy to explain.

So, Victor began to express their opinion on this matter.
- You know, if we talk about greed and wastefulness, for me, these two relative terms. Now I will explain why. Imagine a situation where you receive income, for example, 10 coins per week.

Your fixed costs exactly 8 coins. It turns out that you have left 2 coins each week. If you spend two, it's nothing, you just stay in the same positions, but if you spend 3, then it is a waste. It would seem that everything is clear. But imagine a situation that your monthly income is not 10, and 20 coins at the same cost. That leaves you no longer two, but 12 coins. If you spend only 3 of them, it is quite sensibly, ie costs remained the same, only the income situation has changed. So, if in the first case you spend over fixed costs 2 or more coins, then this waste, in the second case is wasteful spending 12 or more coins.

And where is the greed? If you are having 20 coins per week income and expense in the 8 coins, you can not spend the extra coin, then it is greed. Of course, it is important to look at and the direction of flow. If the case is worth, then it is possible and spend all the difference, and even take the top. But that's another story - about how to use the accumulated money. After all, today we are not talking about that, right?

- That's right - confirmed Ivan and continued to listen with increased attention.

Victor thought for a few minutes and went - Imagine a pond, which flows into a river and from which flows a river. Imagine that in the pond flows 1,000 cubic meters of water per month.
Consider three situations. The first situation is when water flows out of the pond more than there flows, ie, after some time obmeleet pond, it all depends on how much more water flows out of the pond and how large pond itself. So pond, ie your condition may last for a long time, if the stock you had a serious, but if there are no reserves and shallow pond, the excess flow of water will destroy the pond.

Maybe another situation where the pond water flows into a new, but it does not follow from it. For example, a dam holding back the water. Then the pond begins to bloom and swamped. It also does not give a good result. Soon a beautiful pond turned into a swamp.

And there is another situation where the pond water flows and flows, but flows less than flows. Thus, the pond is constantly replenished with water. Growing, but not swamped.

Water, like money, is to be in motion. Pond - it's like an insurance reserve. And how much of it will flow depends on how much water has accumulated. Over time, the outflow of water may increase when the pond is large enough.

In ordinary life, pond, I would call our savings, such as a bank account. Personally, my model such stability. I keep in the bank a year's supply of your expenses, ie my "pond" is the amount of water that flows out of me for years. As long as this water will go, I will find a new source of water, even make new streams had broken to his "pond».

Victor stopped and looked at Ivan.
- Now all became clear, thank you, my friend, - said Victor Ivan at a glance - I've got to meet, I'll go. If you allow, I still drop by to see you the other day, as I understand it, this is just the beginning of a conversation about how to become rich. Now it is important to understand what new streams and how to make your pond as large or big enough to live the way you want.

They shook hands, and Ivan left. Victor sat still, looking at the game of fire in the fireplace and thought. Ivan on that day, too, could not sleep, he seemed to have opened their eyes, and there was still so many questions that he was soon going to ask his friend.