Purchasing can be divided into two main categories: those that depreciate in value and those that appreciate. Most daily purchases, like food and entertainment, decrease in value immediately after acquisition, yet they can enhance happiness. Need-based expenditures support survival and living quality. However, desires or "wants" can lead to unnecessary financial strain. While spending on depreciating items can boost well-being, excessive focus on them may harm financial health over time. Conversely, appreciating purchases contribute positively to wealth and financial freedom, highlighting the need for balanced spending.
Purchases that decrease in value can become unnecessary or financially burdensome quickly.
Spending 100% of your money on purchases that depreciate in value will take a toll on your financial health.
Need-based purchases such as food, clothing, and shelter make up a substantial amount of our monthly expenditures.
Purchases that appreciate in value contribute to wealth and freedom.
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