Spend money on the things you love
If you’re trying to loose weight and you go on a crash diet, sure you’ll loose some weight, but eventually it will all get too much for you and before your know it, you’ll hit the chocolate and biscuits again. And you’ll be back to where you started. It’s just not sustainable.
So it follows that you aren’t going to get rich by cutting out all spending. Getting rich is not about stopping spending money on your morning latte at Starbucks if that’s what you like to do.
Getting rich is just like keeping fit. Whilst keeping fit is about eating sensibly and exercising regularly, getting rich is about setting yourself a standard which is sustainable, for you, over the long term.
A friend of mine told me that when he moved to Hong Kong he was told by his boss, who had been in Hong Kong many years, “spend only what you can afford.”
Sounds obvious right?
But what he meant was, just becasuse other people are spending large amounts of going out and having fun, doesn’t mean you should too.
You don’t have to keep up with everyone else.
If a habit is going to stick it has got to be sustainable and it’s got to be enjoyable.
So it follow that to get rich you might even have to spend more money.
But remembers, spending money is not the same as wasting money.
It also means that you have to be realistic about what you can afford. Just because you may love to drink Champagne but if you’re only earning £100 a day you’re not going to be able to have a bottle everynight with your evening meal.
It also means that you should resolve not to get into debt just to fund your purchases (you’ll have learnt that though from the How to Control Your Debt )
Cut the costs on the things that aren’t important
If things aren’t important to you then whey would you spend more money on them than you had to?
Things like car insurance, household insurance, paying for your utilities etc, I’m guessing aren’t that important to you. Who really cares who provides your gas or electricity? Will cheaper electricity work when you plug your kettle in or will the light come on when you press the light swich button? Trust me here, it will.
If you’re renting a place becuase it’s convenient for work, is it worth living a few streets away and saving on the monthly rent to allow you to fund a holiday or study for a course? You can always walk to work and save the gym membership!
Cutting expenditure on the things you don’t love will free up money to either pay off debt, save or spend on the things you actually do care about and love.
Spend Money on Things That Matter
Spend money by investing in yourself. Continuous learning is one of the best investments you’ll ever make and prevent your skills becoming outdated. Don’t worry, that doesn’t mean you have to spend years at college or university, there’s plenty of ways to learn new things quickly.
Spend money on books. Books can change your life and it’s one of the cheapest and quickest ways to learn a skill, get an idea or learn the collected wisdom of someone’s lifetime of experience.
A self made millionaire who studied 1200 wealthy people found that they had one free pastime in common – you guessed it they read.
If you want some books to get you started, here’s 40 books that made me money.
Spend money on coffee. If you invited a potential prospect or someone you admire out for a coffee and you got them to tell you about themselves and you repeated this with a different person every day for a month, then don’t you think you’d be better off at the end of the month than you were at the beginning?
Spend money on learning a new skill – here’s 26 websites where you can learn new skills – the new skills could help you do more work that you can charge higher prices for or allow you to ask better questions and get better results because you know what to ask.
Improving your business
Spend money on your business. If you know that spending money on Facebook or Google Adwords will grow your business. Spend more money on advertising. If you don’t know how to improve your business. Spend money on a one hour consulting session.
So what do you love?