The Art of Spending

Today's Newsletter:

• My Latest

• A Mindset Trap

• The Art of Spending

• A Money Question

My Latest

75% of Americans don’t use a financial advisor.

My latest dives into how you should think about this:

• When to use one

• When to go on your own

• When is the inflation point

• What matters when thinking about this

You can check it out here ⬇️⬇️⬇️

A Mindset Trap

I used to be borderline afraid to spend money.

You see, when I first came into money ~ I never really thought about spending it.

Instead, I would spend far too much time thinking about how not to “mess this up”.

Frankly, those resources become more of a burden than a benefit at one point.

With each “lifestyle upgrade,” I would second-guess myself and have buyer’s remorse.

I would have people around me say, “Stop being so cheap”.

Well, turns out I wasn’t “being cheap”. I just didn’t understand how to actually use money.

More specifically, I didn’t understand the correct mindset around what I should spend and what I should save.

So today, I am going to share with you a simple framework I use to help me think about “lifestyle upgrades” today.

Let’s dive in…

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The Art of Spending

Ok, let me set the stage.

You are in your wealth-building journey.

A few years go by in a blink and boom, you have a higher income, net worth, or opportunity set than you ever imagined.

Said another way, everything has changed.

Yet there you are with the same mindset regarding a purchase that isn’t going to move the needle one way or another.

• It could be a $6 Starbucks

• It could be a $70,000 vehicle

• It could be a $1,000,000 house

There are levels to what that purchase could be in your journey.

Yet there you sit with a mindset that hasn’t advanced like your wealth has.

I remember seeing a video of Dave Ramsey discussing a $100,000 car purchase with a caller to his show.

The caller outlined to Dave that he had a liquid net worth of $1,700,000.

His question, “Can I afford the car?”

Dave’s answer is one that stuck with me.

He said (I am paraphrasing) ~ You could take $100,000 in your backyard right now, light it on fire, and it wouldn’t change your life.

So yes, you can afford the car.

You see, here is the truth ~ If you are someone who is truly thinking about your purchase decisions, my experience tells me you are not going to “overbuy your lifestyle”.

Because that is a habit you have developed over years of making wise money moves.

Let’s now consider this simple framework for our “lifestyle upgrades”.

In short, it works like this ~ Ask yourself the question, “Is this purchase/expense a stressor or a line item?”

Here is what I mean:

It is a stressor if it is going to keep you up at night.

Doesn’t matter if it is $5 or $500,000.

It is a line item if you are fine paying for it forever.

You can afford it today, tomorrow, and in a year.

To drive this point home, let me give you an example in my own life.

My wife and I belong to a country club.

We are the ideal member.

We pay our dues but rarely go (life is a bit busy these days).

Yet I love having the optionality to play golf or share a great meal on a whim.

For a few hundred dollars a month, I am fine paying for it, even if some months we don’t use it.

Years ago, this would have been a stressor for me.

I would have been thinking about the money I am wasting.

Today, it is a line item on our budget.

I view it as a luxury that I like to have and we can comfortably afford.

You have heard me say it before ~ “No one gets an award for dying with the most money”.

I see far too many people build incredible net worths only to never expand their mindset on spending.

• They still let every lifestyle upgrade stress them out.

• They still think with the same mindset as when they had nothing.

• They still focus on what could go wrong instead of enjoying the success.

My friends, so much of being a good steward of wealth is your mindset.

It takes being self-reflective and having a real awareness of your own blind spots.

Heck, my most enjoyable purchases have been spurred by people in my life pushing me to expand my thinking around money.

Because guess what, I have just as many preconceived notions and blind spots as you (probably more).

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So remember, the next time you are thinking about that lifestyle upgrade…

Ask yourself ~ Is this a stressor or just a line item?

It might just help you enjoy your money a bit more!

Until next time my friends!

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A Money Question

What is one area of your life you want to “live richer” and one you could “live poorer”?

Said another way, what are the areas of your life where you get the most satisfaction using your wealth?

I have found that turning those dials up and others down creates far more enjoyment of your money.

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3 Ways I Can Help You

💰 Schedule an introductory call with Moment. We help athletes, entrepreneurs, and key employees build and protect wealth.

📹 Check out my YouTube channel. A safe place to get smarter with your money.

📷 Interact with me on Instagram. I provide bite-sized daily content to level up your money game.

Moment Private Wealth, LLC is a Registered Investment Advisor, located in the State of Missouri. Moment Private Wealth provides investment advisory and related services for clients nationally. Moment Private Wealth will maintain all applicable registrations and licenses as required by the various states in which Moment Private Wealth conducts business, as applicable. Moment Private Wealth renders individualized responses to persons in a particular state only after complying with all regulatory requirements, or under an applicable state exemption or exclusion. Nothing in this content is intended to be, and you should not consider anything in this content to be, investment, accounting, tax, or legal advice.