Why is it so difficult to switch from a mindset of asset acquisition to one of asset depletion?
We spend our working life focussing on asset acquisition and growth yet if we are to not render our work worthless at some point we need to switch our focus to that of spending what we have earned.
If we don’t then why did we bother to acquire? What was the purpose of that? Past the point where we had covered our basic needs and ensured our long term financial security if we don’t ultimately spend it then all we did was waste our time – a part of our one and only life – for nothing.
Yes, we can leave something for our children. But why wait until death to pass it on? We could do that in our lifetime, see them benefit from our gift, and get pleasure from that. At least then we get something for ourselves from the work that we did.
Currently those of us that have built a reasonable amount of wealth face the prospect that when we die the government will take a hefty chunk of that wealth in tax. And when I talk about “a reasonable amount of wealth” I’m not talking millions. I’m talking about a reasonable sized house in most parts of the country. Past that (a value currently at a maximum of £500,000 per individual) the government will take 40% of the rest. There are a few exemptions and some tinkering around the edges, but otherwise the tax that you paid throughout your life (and the time you gave up in order to earn the money that you were forced to pay in tax) will be supplemented by a 40% charge for the privilege of not waking up one day.
Whether or not you agree with the principle of charging citizens to die, unless you generate more joy from acquiring more wealth than you do from anything else then at some point you need to consider switching from being a saver to being a spender. Obviously, if making more and more money is the most enjoyable pastime you have then who am I to tell you to stop doing it? But if you enjoy other things more – holidays, golf, spa treatments or whatever else floats your boat then once you’ve got enough it’s time to stop swapping time for money and start to swap your hard earned money for pleasure.
And depending on how much you’ve got you could be saving up to 40% on everything you spend!
Leave a Reply