When is it OK to spend money? It’s very common for people who prioritize building wealth to shudder at the notion of spending it. After all, we as a tribe have self-selected out of this culture of consumerism and embraced a lifestyle of forced scarcity to help us reach financial goals and, ultimately, financial independence.
But spending money isn’t inherently bad. In fact, once you get to a place where your net worth is increasing faster than your income, you have likely reached a critical tipping point in your financial journey that allows you to start making a transition from saver to spender.
Tune in to this week’s episode of The Money Guy Show as we give you clear direction on what, when, and how you can spend better and still stay on your path to building lasting wealth.
Here’s what we cover in this show:
- The guardrails and filters you can use to spend wisely when you’re just starting out to get on the right track
- How to spend money on the essentials like housing and transportation
- What your total transportation costs should be in your 20s vs when you have increasing net worth
- Main things to think about before making a luxury car purchase
- The downpayment and the percentage of income your housing costs should stay within in your 20s vs 30s and beyond
- How to understand your ‘why,’ the primary motivation for buying your house, and the role it plays in your purchasing decision
- The ongoing housing costs every homebuyer should be aware of and consider before selecting your forever home
- What you need to know about spending on the “non-essential” items of life that tend to cause the greatest amount of guilt
- How to manage the push and pull of saving vs spending
- How to set grounding principals for non-essential purchases
- What you can do to successfully plan and enjoy travel
- Furniture is disposable and why this can help you make money-smart decisions when buying it
- When you can buy the “toys” without it being a financial mistake
- Why it’s better to rent vacation property than own vacation property
- How to understand where you stand financially and how powerful this knowledge can be in your life
Resources mentioned in this episode:
- The 30(ish) Minute Financial Plan
- Financial mistakes you hope your friends and family will make
- How to Avoid Becoming a Miserable Financial Miser
Tune In and Go Beyond Common Sense with the Money Guys
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