Things to spend your money on? Hmmm. In the past videos, we’ve talked about managing your money. We’ve talked about money mistakes. we’ve talked about automating your finances and avoiding to pay certain things. And it’s true–it’s important to not blow money on things that don’t add value to our lives. But you don’t get rich by being cheap–you get rich by being smart.
And sometimes, the smart thing to do is to spend your money.
Before we get started to the 5 things I think you should spend on, let me give you a shortcut to figuring out where I’m going with this. A lot of people say “time is money.”
But that is wrong.
Time is infinitely more valuable than money.
Let me ask you a question.
How many of you guys would want me to write you a $100K check right now? Everyone would love that right?
Now, what if I told you there’s a caveat. I’ll write you that check, but you will no longer live. Now you won’t want that money right? Even if it was a hundred million or five thousand billion, you won’t want that money. And that’s because we infinitely value time more than money. We just don’t consciously think about it.
So the short answer to the question, “ when does spending money make sense?” is whatever that can save you your valuable time. Now here some examples.
1- Spend Your Money On Home & Car Repair
I was actually one of those people who tried to save every penny and didn’t really like spending on maintenance. We always rented when I was growing up so I didn’t understand the concept of spending on home repair. So when my husband and I bought our first home I was trying to prevent him from spending so much on, let’s say, our basement once we discovered it could get flooded.
First I was like, eh we’ll figure it out if we get flooded. And then when we did get flooded I wanted to push him to fix it himself instead of hiring someone to help. It’s just my frugal nature.
But what he said to me really resonated with me. He said, “I don’t want to spend my valuable time on something someone else can do and get paid for it, while I can spend my time with my family.” And that’s when it hit me. Time is more valuable than money.
Saving that $700 might sound great right now, but it comes at what cost? At the cost of my family spending time together. He also opened my eyes to the importance of maintenance before something crazy happens. He had this insight because something crazy DID happen to his family when he was young just because they didn’t maintain their home. I’ll tell you about that story in future videos. So have your roof, basement insulation, your heating system checked annually, deal with pests at the first sign of trouble, and take care of small repairs before they become big ones. It may not be glamorous, but these small investments could save you a ton of money in the long run.
And what’s true for your house is true for your car–except that your house isn’t going 60 miles an hour down the freeway waiting for the brakes to fail. Don’t be stingy when it comes to regular tune-ups and oil changes. Find a mechanic you trust, and get your car serviced regularly. You’ll save money by not letting small problems become expensive repairs, and most importantly, you and your family will be safer and can spend more valuable time together.
2- Spend Your Money On Paying Down Debts
If you’re making only the minimum payments on student loans, auto loans, or credit cards, you’re throwing money away. The longer it takes you to pay off your debts, the more you’ll pay in interest. The concept of being in debt was a cultural shock for me when I came to the US. Neither in Iran or in Japan, which are the countries that I grew up in, did people get into debt for things like education and credit cards. And I can see how much the debt hurts many of my students who come to me now.
Once you have your emergency fund stashed away, try to pay more each month than the minimum payment due on your loans. You’ll save money over the long term, and free up those monthly payments sooner, and it’ll be better for your family int he future.
3- Spend Your Money On Good Insurance
Did you know that medical bills are a leading cause of personal bankruptcy in the US? Again, this is something that may be unfamiliar to people from other countries and I don’t want to get political here, but regardless of how bad our system is you’ve got to up your game with it if you don’t want it to suck you up.
Not having insurance might save you a few hundred dollars over the course of a year, but it could cost you tens or hundreds of thousands in the long run. It’s not worth it.
On top of quality health insurance, you need all kinds of other insurance like car insurance, homeowners or renters insurance, and even life insurance. Now, insurance is something that can be tricky, and it is a system that’s created to make the brokers get rich on commission fees, so make sure to shop around for good deals, don’t just jump on the first insurance a broker offers to you, because at the end of the day, they’re in it for their own commission fees. Not every insurance is right for you so make sure you get the kind of coverage that makes sense for your particular situation and in other words, cover your assets!
4- Spend Your Money On Health
Remember, wealth isn’t just about how much money you have in the bank. It’s about how much you’re able to enjoy your life. We talked about how time is infinitely more valuable than money and it’s a lot easier to enjoy your time in your life when you’re healthy.
And if wasn’t just for your time, staying healthy affects your money, too. The most obvious cost of poor health is higher medical bills, but it could also mean income loss because you can’t work, are less productive, are constantly yelling at your kids, and then need to spend thousands of dollars on their therapy, and their ADHD, and ABCDEFG. You might also pay more in health and life insurance premiums. So Spend what you need to to make you and your family healthy.
It’s one of the best investments you can make.
5- Spend Your Money Education
Ever heard the saying, “If you think education is expensive, try ignorance”? Investment in education is one of the smartest investments you can make to secure your future and to save time. There’s a ton of free stuff out there that might tempt you to forgo the monetary investment and just browse through the Internet and pay your time for it instead.
But let me ask you this question again. Which one is more valuable? Time or Money?
The time you’re spending on browsing the free stuff could be suffocating your future success.
You might get some results when searching for things you know you don’t know… but what about the things you don’t know you don’t know! How are you gonna look them up? And the fact is that you’ll get the best results when you actually have skin in the game.
You have no idea how many people I’ve given my Make Your Money Work For You PowerCourse away for free to, but it just goes over their heads. They don’t value it as much, so they don’t implement the stuff I teach them. but my students who pay? They’re rocking it.
Once they invest the money, they have skin in the game, so they value it more and they implement the strategies. This happened to me first hand, when I used to play the piano. When I was 15, I had a very important recital for a piano competition and I was representing my instructor in the city. A month before the competition, my piano teacher gave me a tape to watch to see the techniques I needed to use for the competition. Then she asked me to bring her my wallet. When I did, she emptied it and gave it back to me. I was like “what did you just do?” and she said, if I give it to you for free, you’ll never watch it. But now you have skin in the game, you have invested in it, so I know you’ll watch it. And you know what? She was right.
Now I want to hear from you. Leave a comment below and tell me what you are spending your money on to save time, to live a more meaningful life, and to reach success faster?
Invest Divas know when to save up … and when to pay up…
In other words…
Invest Divas spend money where it counts.
VIDEOS YOU’LL LOVE