Money talk – Ask the big-picture questions

Do you have these following thoughts –

“Can I do without the guac at Chipotle (or Guzman y gomez in Australia)?”

“I better start bringing my own coffee. I have to start saving money and do without my morning latte from the cafe?”

“This spice is $4 here, but about $0.50 back home. It might be worth getting this shipped from there.”

I was totally this person. I thought that saving $2 at Chipotle is going to help me build my wealth. Although I understand the idea of extreme frugal living for when there is a goal to reach, its not sustainable in the long term. It makes you feel deprived of all the good things in your life. I soon realized I would save $5 by not having my Boba tea that morning but end up spending $1000s of dollars on furniture. Somehow, saving a little money here justified spending $100s on apple care, because you are totally going to ‘need’ it.

I like the balance that the Ramit Sethi talks about in his book – “I will Teach you to be Rich”. Here are a few things that resonated with me the most and my thoughts on them-

  1. Think about the big picture – Think about getting a better job or negotiating your salary on the current one and increasing your salary (that’s $1000s of dollars question). Think about reducing our subscriptions to keep only the ones you use (thats a $100s of dollars question). Is saving $2 on guac going to make a difference in the long term? It is going to make you feel deprived. Maybe a better mindset would be to reduce eating outside for a healthy lifestyle, but when you do go out, enjoy yourself a good meal that makes you happy.
  2. Spend on the things that you love to do or use all the time. Be super frugal on things that dont matter much to you. For example, I love knitting and it bring me happiness. I might spend about $200-$300 on really nice yarn. On the other hand, I couldnt be bothered that my couch is not handcrafted leather. It serves a purpose of sitting and if you have dogs or kids, they are going to mess that up within seconds. I dont mind spending $150 on a marathon, but I couldnt be bothered buying designer clothes. The $10 T-shirts work just fine for me.
  3. Know your finances – Some of my family and friends legitimately fight over spending $50 at Home depot/Bunnings. And these guys for a fact earn >$200,000 a year. Is overspending really the problem? If you know and plan your finances well the once in a while expenses should be well accounted for. What really matters is how much you are investing and how much is available to you when you retire.

Stop asking the $2 questions. Think about the bigger picture. Spend on the things you love. Live a simple fulfilling lifeCreate a sustainable money mindset and lifestyle to build your wealth. What is your money plan?

PS – In Jan 2022, We started investing in Spaceship. It is a small $100 monthly investment plan. Baby steps. Use my referral code – S8E95QN5JT if you plan to open and invest using a spaceship account. and we both get $10 each. 🙂

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