George Orwell in his groundbreaking book, and a 20-week run as the New York’s bestselling book in the 1984 publication — ‘ANIMAL FARM’ once said, “All animals are equal, but some animals are more equal than others”.
Orwell’s quote is alive, and evident in today’s society. Perhaps, you have countless examples or proofs to validate Orwell’s famous quote.
In this article, I will attempt to transpose Orwell’s quote and re-use it in the personal finance realm, in that “all words are impactful, but some words are more impactful and life-transforming than others.
PROFOUND is one of those words.
However, this article focuses on the word EXPENSE in money management or personal finances.
Chances are you have heard one of these statements once, twice, or more if I am not mistaken or overstating the fact.
And what is funny enough is that you never bothered to relate such statements to your own life.
I am talking about statements such as:
- You need to cut down on your expenses,
- Owning a car involves a lot of expense,
- Buying a bigger car has proved to be well worth the expense
- My biggest expense this year was my Christmas holiday, or
- I don’t think a first-class ticket is worth the added expense.
And the list is long, however, there is one denominator, and that common denominator is the word EXPENSE.
Expense stands out as a liability or a cost, a loss, or a detriment, especially if it goes unchecked or uncontrolled.
The TRUTH is an expense that has a negative sound, and it attracts negative energy and emotion.
In other words, the expense is a BURDEN, specifically a FINANCIAL BURDEN.
To better understand the word EXPENSE, I consulted three dictionaries: Oxford Dictionary, Cambridge Dictionary, and Merriam-Webster Dictionary.
Oxford defines expense as the money that you spend on something or something that makes you spend money. This means the expense is that thing that takes money out of your bank account or your wallet.
Merriam-Webster defines expense as a financial burden or an item of business outlay chargeable against revenue for a specific period, or something expended to secure a benefit or bring about a result.
In short, an EXPENSE left unchecked is one’s financial burden. Why? Because human wants are limitless, and resources are scarce to meet human wants and desires.
So, what is the underpinning lesson, here?
One – track your expense
Two – live within your means and be faithful to your budget, and
Three– be mindful that expense is a lingering word in one’s head, so don’t resist it because anything you resist persists Just guard your expense and stop being emotional
You can have an encounter with it at each of the four quadrants of the personal finance model, for instance, you meet the monster called expense at
- A Cashflow,
- Income Level
- Asset, or
- Saving Level.
© Omiri, 2022
