How To Master The Skill Of Spending Money Wisely

People usually think of “money” as one skill.

However, it’s really split into 3 separate skills:

1. Earning
2. Investing
3. Spending

Earning is your inflow.

Investing is how you preserve + grow it.

And spending is how you live your life.

Many have 1 or 2 of these skills, but few have all of them.

(Which is why so many people are unhappy).

Here’s how to master the skill of spending money wisely.

Get Utility For Your $

To get utility for your $, you must first understand what money really is.

“Dollars” are machines with power delegated to them.

However, this power doesn’t materialize until YOU choose to wield it.

If you aren’t putting the power to work FOR YOU, it doesn’t exist.

You see, most people dump large amounts of money into an abyss.

It doesn’t matter how much you have if it isn’t making a change in your life.

Where do you get the most utility?

1. Cheap thrills that give you intense pleasure (a nice drink, etc)
2. Regular use items (shoes, bed, chair, blender, etc)
3. Position (Location of crib, access, reputation, etc)
4. Memorable experiences
5. Awareness / information
6. Outsourced drudgery
7. Cash flowing assets
8. Quality of clothes
9. Quality of food
10. Saving time

(I didn’t include things like workouts on the list because they are free).

All these things are the “big blocks” that give you the highest ROI.

Without them, you’re trying to get rewards where there aren’t any.

(Pretty much setting your money on fire).

What To Avoid?

• Killing your cash flow
• Highly depreciating assets
• Loading up on recurring costs that aren’t bringing you more money

These things are the polar opposite of the previous section.

They:

• Decrease freedom
• Cause you to overspend
• And fail to store value.

Remember: money itself isn’t your wealth… it’s just a tool to help move your wealth around.

And when you position your money to keep the most value flowing through your life, you win.

Conclusion

1. Get utility for your $
2. Dollars are machines with power delegated to them
3. Put money to work for you to keep value flowing through your life
4. Avoid killing your cash flow, highly depreciating assets, and loading up on recurring costs that don’t bring you money.
5. Money itself isn’t your wealth… it’s just a tool to help move your wealth around