Usually, I spend these emails telling you what NOT to spend your money on. But today, I’m making an exception. I want to talk about the opposite.
Spending money on things that are uber important to you.
The Wealth Dad on X (formerly Twitter) admitted something that many of us would probably consider wasteful.
He spent $400 at the movie theater last month.
And you know what? He ain’t sorry. He knows how much $400/month could add up to if that money were invested.
But no shits were given for The Wealth Dad.
He’s like, “I know. Don’t care. My family loves it.”
And you know what? He’s right.
Who cares if that $400/month would add another $567,000 to their net worth over 30 years? If it brings his family enjoyment, then screw it, it’s money well spent.
I like visiting breweries and wineries with friends; we spend handsomely for that privilege but can afford it.
Spending money is okay, provided it:
- Isn’t making you broke, and
- You genuinely love what you’re spending on
Notice the and in the list above.
If it’s making you broke, it’s smart to curb that spending.
And likewise, if you’re only spending money because you feel like you have to, or you’re just covering up something in your life, then yeah, it’s super smart to stop spending all that money on crap you don’t love.
But dropping $400 at the theater isn’t breaking The Wealth Dad.
Instead, it’s making his family happy because they REALLY enjoy it.
Want to spend money on the non-essentials (like going out to eat, seeing a movie, checking out a brewery, etc), that’s fine!
The key is to:
Make sure it isn’t adding financial stress to your life, and
Be honest with yourself about whether it’s worth it
If you can say “Yes” to both of those, you have it in the shade.
