How You Can Spend Your Money Guilt Free
Ramp Capital posted a recent blog, this summary hits the nail on the head:
Remember that optimization is not necessarily about maximizing every aspect of your life. It's about finding a balance that works for you and helps you achieve your goals while also allowing you to enjoy your life and the people in it.
Life is a balancing act.
We have to tackle the everyday needs and costs but we also need to be cognizant about saving for retirement, taking care of our family, building an emergency fund, saving for your child’s education costs, paying off debts, maintaining our physical health, etc.
The list never seems to end.
But wouldn’t it be nice if you could spend your money without worrying?
It’s a goal most of us are probably looking to achieve.
You may think you need to constantly make changes, relentlessly cut back on your expenses, and earn the highest returns possible. A lot of concepts in finance do revolve around the idea of “optimizing”.
However, becoming hyper-focused on your savings rate, or refreshing CNBC every three minutes to get stock picks is not healthy and you are creating unneeded stress and pressure as you chase that extra 1% return.
Not to mention the people and opportunities in your life that you are neglecting as you bury your head into your computer.
The truth is we could always be doing more.
Someone, somewhere, is earning and saving more money than you.
But we all need to live OUR lives.
I’ve told the story about the retired gas station attendant and janitor who was worth $8 million when he died and donated $5 million to his local library.
There are many great lessons in there about investing in high-quality businesses, for a long period of time, and maintaining a very frugal lifestyle.
This story highlights that you don’t need to make crazy money in order to accumulate wealth.
But this was the life that Ronald Read was living:
Officially retired at 76 years old
Retired from the gas-station attendant job only to go back to work as a janitor later on
Wore a coat that was held together with safety pins
Ate breakfast at his local hospital’s café to save money
Parked far away from his lawyers office to avoid paying the parking meter
Chopped wood so he could save money on heating
If you asked me to do all of this, to accumulate $8 million during my lifetime, I would politely decline.
I’m not knocking anyone who may live this type of life, and I respect his very simple lifestyle, but that sure as hell doesn’t sound sexy to me.
Instead focus on what really matters.
Which is making this game easy on yourself - automate your savings, simplify and understand where your money is, and practice moderation.
After you have addressed your savings and paid your bills, whatever is left, spend it. GUILT FREE.
Understand that you are going to make choices that may not be the best financial decision, and that’s ok.
But find a way to strike the right balance, which will help reduce the stress and pressure of money.
Strive to create a life where you have the flexibility, freedom, and time to do what you want.
This is how you can ultimately spend your money guilt free.
Disclosure: This material is for general information only and is not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
All indices are unmanaged and may not be invested into directly.
All investing includes risks, including fluctuating prices and loss of principal.