Best Things To Spend Your Money On

I often speak about ways to optimize your spending so that you can achieve financial freedom sooner than most. But let's step away from that for a bit.

Yes, I know that 401K and Roth IRAs are important for our future financial goals. Earn more and spend less. Avoid lifestyle creep and live below your means. Those are the basics!

While I still strongly believe in those things, I just think that there are other ways to efficiently spend your money and you should not feel guilty about it. Not everything is about financial gain.

But, after you have allocated money to your savings and invested at least 20% of your income, it can be rewarding to set aside some money for things that bring you happiness.

As a result, I'd like to discuss the unconventional ways that I believe everyone should spend money on, which is also an investment in some ways, depending on how you look at it.

Traveling

One of the things that I never regret spending money on is traveling and exploring the world. I’m a person that appreciates experiences. It's a beautiful thing to meet new people from different cultures and learn about the ways others live throughout different parts of the world.

This allows you to become open-minded and understanding of different religions, cultures, and traditions. It also gives you an opportunity to network with new people outside of your circle and see how individuals of your age or older make their money to travel and explore.

I once met someone in California who told me that she did not want to become rich. This was intriguing to me, as all I do is think of ways to grow my net worth.

But I admit it was eye-opening to see someone tell me they enjoy the simplicity of not worrying about money and instead focusing on making just enough to travel affordably and create friendships all over the world.

Education

If you are not learning, you are not evolving. You must continue to hone your skills and develop new skills that will continue to serve you in your career.

You need these skills so that you can continue progressing in your career and earn a high income. This can be either through having your own business or working for someone. But, you need to consistently improve your skills and acquire new ones if you want to become a high earner.

This can be done through courses, seminars, 1-on-1 coaching, mentorship, and books. The return on investment here is huge. I personally spent a ton of money on books and courses. But this does not need to be expensive. There are a lot of inexpensive places to start, such as skillshare, for example. I would start there, along with reading books.

Debt Payoff

There is good debt and bad debt, but for someone starting off their financial journey, you should assume all debt is bad for now.

I personally know a few people who have extra cash hanging out in their savings accounts, and they are reluctant to pay off their debt because the money gives them a sense of financial stability. This is the worst thing you can do.

We live in a society where debt is normalized. I think that is the reason why many fall victim to their crippling debt and can never escape the debt cycle. Which is why I truly believe that paying off your debt is the most important thing on this list, even more important than investing.

Debt is depressing and is like digging a hole for yourself without realizing it.

Hobbies

Everyone needs a hobby. Something they enjoy, that brings them real happiness and is not tied to materialistic items. This is great because hobbies help shape our personalities and build our character.

I think that everyone should invest a portion of their money in their favorite hobbies or learning new ones. This can include learning how to play chess, sports like tennis, gardening, photography, knitting, swimming, or whatever it is you find interesting.

Adding more hobbies to your life promotes a happier life. It will give you a purpose to earn more money so you can enjoy more of your hobbies with the people you value the most.

Self-care

I think a lot of us lack attention when it comes to self-care. But arguably, it is one of the most important things to splurge on.

You need to take care of your body and wellbeing and that in itself is a great investment. Which is why money spent on physical activities is money well-spent. Similarly, if you enjoy treating yourself to fancy restaurants once in a while then it could be worth it.

Some people would rather go relax in a spa and get massages and facial treatments. which is extremely relaxing after all of the daily noise. It all depends on what you like and enjoy. Just do not forget to take care of yourself at the end of the day.

Have an awesome week!

Muhamed