The classic dilemma revisits.

There is one ideology that says “Make the most of what you have today”. Don’t worry too much about the cash, income will keep coming in, if not this job then there a many other jobs available. Spend and be merry, life is a party so live it. Money is available in plenty and income can support large EMI’s. For simplicity let’s categorise these people as “The Consumers”.

The other ideology is “Provide for a better tomorrow”. You must put away all the money you have into some safe saving, it is a precious commodity, it is life giving etc. Save every possible rupee, live frugal all for a better tomorrow. These are people who compromise today for the hope of a brighter future. For simplicity let’s categorise these people as the “The Producers”

Having said this, all of us have to take a stand whether we want to be the “Consumer” or the “Producer”? Here are guidelines that will help you choose.

Consumers – The brighter side

Like they say, make hay while sun shines. If one can afford it now, why not? The “consumers” have it all, many friends, travel, parties, adventure, cuisines. They experience much more and their life is enriched. It is situation where when you look back at life you feel you have done so much. Each day was like a story and there are so many events to add to our memory bank.

Consumers – The dark side

The cashflow falls like a bungee jump when times change, boom get over, once the existing job is gone and a similar is not available. Boom times do not last for ever. For e.g. think about salaries to call centre employees, can they rise for ever? If they doIndiawill lose competitive advantage. But this will happen. We don’t have social security in our country, so if we are bankrupt or have nothing left the state will do nothing. Family and friends will generally be of little help. Basically it is very hard to travel by bus & train when you have been used to air-conditioned cars. When you turn back in life and put down your assets on paper you have a large balance of emotions and many a times huge debts.

Producers – The brighter side

Producers always have assets, they are always in surplus. They have little or no loans, never have to borrow for education or wedding of their children. Their quantum of assets however depends on their understanding of finance, money, planning and investment. Some will produce a lot more than others but generally all will have substantial money at some point of time in life. Their balance sheet is full of positive cashflows for now and for the future. They have provisions to see them through bad financial times as well.

Producers – The dark side

The producers sometimes forget to live life. Many opportunities and experiences are missed. Life is routine and everyday is just the same grind. Things happen however but much later in life. The problem is that the significance of excitement dies. Is the feeling of power so powerful having a Mercedes when you are 60? What is the point of being able to go for a romantic holiday toSicilyorBahamasyou have teenage children and parents to be taken along? This is a matter of personal choice but I feel, what the point of working hard and earning money where you just not going to use it?

Confusing? That is the way it is, that is the classic dilemma.

Needless to say, either ways there is ample satisfaction and dissatisfaction for both “Consumers” and “Producers”. The question now is, how do you have only satisfaction and no dissatisfaction?