SELECTIVE EXTRAVAGANCE AMIDST FRUGALITY – JEWISH SECRET TO SUSTAINABLE WEALTH CREAION

Have you had the fortune of pondering over the Jewish principle of being “selectively extravagant but prudently frugal”?

Once upon a time, the best-selling author, Steven Silbiger, in his quest to collate, package, and redistribute the ageless wisdom of The Jews that made them one of the wealthiest ethnic groups to ever live, published the Jewish Phenomenon on 25th May, 2000.

He shared seven keys of wealth creation from the Jewish culture and way of life, and among them is the aforementioned quote.

To put it in perspective he said, “I do not like to throw my money away, but when something is important to me, I want the best”

What does this mean in practical terms?

 Balance is essential to building sustainable wealth. If you over-compensate (frugal) in your quest to save and invest, you will get frustrated and lose out on quality and value for money. Such over-compensation is unsustainable.

If you are too extravagant, you will waste all your income at the expense of your financial security.

So it is important that while we save at least 10% of our income towards building and securing our family’s future survival, we do so with a measured frugality so as not to starve our present needs. And in securing our needs, we must learn to focus on value for our money and not just cost.

Selective extravagance speaks to value over cost. Buying cheap, inferior goods to satisfy your needs (not wants and luxuries) often cost you more in the long term due to frequent replacements and repairs. That is why there is wisdom in being selectively extravagant by going for the best of the things that you really need.

Keep a good balance, and ensure you give your family a reasonable and decent level of comfort in your frugality to build wealth.

Written By: Josiah Nang-Bayi, MD

Author: www.moneyfarmacademy.com