Three money minds at work; Most people’s saving and spending habits are governed by their ability to earn

economictimes.indiatimes.com:

bankruptcy a few times. He remained oblivious as a child and when he grew up, his father shared his thoughts on money. He said that according to his father, there are three kinds of minds at work when it comes to money.

The one that earns, the one that spends, and the one that saves. Kannadasan knew that he had a mind that could earn. He was paid top money for his writing skills and knew he could write as long as he was alive, which he did.

However, he told his children that he did not possess the same sharp mind when it came to spending. Or saving. He spent at will.

He was never scared of the future to care about savings. That answer struck me. Some inter-generational stories suddenly began to make sense to me.

The generation that worked hard to earn wealth rose from simple means. Having seen that the household could run out of money and fall into troubled times, they pushed themselves to earn wealth. Spending habits were frugal and saving was paramount.

The generation that inherited it took to spending easily as they could never visualise shortage. They held no fear of the money running out and defined themselves by how they spent it. If they suffered from the inability to grow or add to this wealth, they turned secretive, suspicious and stingy.

Uncle Stooge was unwilling to give, for he feared he couldn’t earn back what he might spend or give away. We still live among painfully frugal parents, who can’t spend on themselves, but want to leave everything for their children. To see their wealth diminish, even if it is by spending on themselves, hurts them.