Counting your Pennies. Part 1

Will there be the dawn of a day where we finally see a world where there is equal and equitably distribution of the global resources? As this remains the dream and aspiration of many policy makers, the harder we try the bleaker the possibility of that wish ever attaining fruition. While it may not be totally impossible to pare the three classes currently existing within the social hierarchy into one, where national and global resources are equally and equitably distributed, capitalism remains the greatest adversary to such an agenda. Within the upper, middle and lower classes however, people move between classes through change in income levels and spending habits. While change in income level may not necessarily result in burgeoning resources because that usually comes with a commensurate expenditure level, adopting a more thrifty spending habit will, and combing the two produces incredible results. The objective of this article is to discuss and explore some basic principles that can engender prudence in managing one’s resources.
The global resources are not increasing as significantly as the rich are increasing their wealth. An Oxfam report shows that the wealth of the richest 62 people increased by $500bn to $1.76tn between 2010 and 2015, while the wealth of the poorest 50% dropped by 41% over the same period. It therefore follows the logic that while the wealthy few accumulate more, the mass lose what they barely have, my best fit explanation for the high individual indebtedness today. The 388 people who owned the world’s one half wealth in 2010 shockingly reduced in number to only 62 people holding propriety over the same percentage of global resources, according to The Guardian. Effectively, less than 1% of the 7 billion people on earth own more than the wealth of the rest 99% put together.
Iconic individuals such as Christine Lagarde, head of the International Monetary Fund, and Pope Francis have tried to spearhead a course to reverse the trend in inequality, but we have only seen really situations that fly in the face of the intended outcome of their agenda. Every individual should wake up to this reality to take conscious steps to husband his or her resources, because for as long as capitalism continues to dominate the world the filthy rich will always have the right and insatiable edge to come after the nothing of those still living under the radar. In order to do this, you need to change your perspective about the penny and properly account for your own resources and be in control. Hopefully the following points will put you on the path to achieving this.
1. Change your perspective about the cent
What is our perspective about the cent? We barely place any value on it; we feel bothered to receive them from grocery stores as change. We often ignore it on the dollar prices when paying for goods and services but that is where the money machine mechanism is hidden because Accountants know most people careless about what cent amount is on the product, as long as they have the dollar price. For instance, most people will not see or perceive the 99 cents on a product that is tagged $5.99; all that is important is the $5. Think of how many times you ignore the presence of the cent on a daily basis. This is the perspective you should change about the cent that makes you lose money on daily basis. If you know the standard price quotation of a product or service, why would you elect to buy it at maybe 20 or 50 cents more unless it is an urgent situation? Obviously because of the perspective you have always had about the cent, “it’s nothing” or “it’s not much”. The irony is that what people see as insignificant in cents, a whole nationwide, continental or global grocery or departmental stores value greatly and make every effort to get it from you. Beat this trick of “centism” by rounding up rather than rounding down.
It is important you know the prices, at least ranges of the things you frequently buy. There is no point in paying free cents to a company unless it is in a circumstance of lack of information or urgency. You can gain considerable idea about the prices of your most frequently patronized goods and services by keeping receipts and review at your free time. This will not only help you to become more conscious about general prices, so you do not confuse prodigality with normality, but also put you on the way of becoming a more sparing individual and properly managing your limited resources.
The next points will discuss the tools you can use plug all the loopholes through which you lose your money unjustifiably.