How to Live a Incredible Rich Life With your Current Finances

in LeoFinance7 months ago

If you have not had a chance to read I Will Teach you to be Rich by Ramit Sethi you should definitely check out the book.

I know it sounds really like a huge gimmick, but this book has a completely different take on finance and savings than any other book or article that I've read on the topic.

In a world that's either consumed with two extremes of living paycheck to paycheck or trying to save money by cutting your own hair, this is a healthy compromise when it comes to the topic.

Cutting Your Expenses to the Bone

I was recently introduced to the FIRE movement when I was listening to the Bigger Pockets Money Podcast and was consumed with trying to retire by the time I turned 40.

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If you've never heard of the FIRE movement before it stands for Financial Independence Retire Early.

The goal is to cut almost everything that's not a necessity out of your life and once you hit a retirement account with 25x your yearly expenses you can retire and live off the average gains of your retirement account.

The idea behind this is if you can't control the amount of money you're paid each month you can control how much money you spend each month by cutting anything that you're paying for that you don't absolutely need.

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After cutting most of our streaming services and eliminating eating out my wife and I were exhausted between preparing every meal of the day and entertaining our kids non-stop.

While we didn't sign back-up for every streaming service and limited ourselves (or at least tried to) to only eat out on average 1 - 2 times a week.

You can Live Richly Without Going Broke

Ramit Sethi, in his book, explains how you can be smart about what you spend your money on, but still buy the $300 shoes that you really want.

It has been a few months since I have read the book, but if I remember correctly the first thing he encourages you to do is to track your finances.

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If you don't know where your money is going than how can you really save up for things that you absolutely want and love.

If you're spending $10 every month on a gym membership, for a gym you haven't been to in a year then why are you still a member?

Do you Even Know Where your Money Goes Each Month?

Purposeful spending is one of the points he makes time and time again in the book.

He talks about people who go out to fancy bars ever weekend, or buys every new pair of Jordan's the day they release.

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He talks about the sacrifices they make in order to afford the nice things in life. Some people don't enjoy going on nice vacations, so they can save that money to buy nice shoes. To them, that is better than a trip overseas to some exotic beach.

Others will cook all week at home so they can save money to go out and order fancy drinks and have a night on the town on the weekend. They are able to splurge because they make their spending purposeful.

If you find what you're passionate about or what brings you the most joy in your life spend money in those places and cut everything out that you're not as passionate about.

Conclusion

It's an incredibly refreshing book and if you haven't had a chance to read it, it's definitely worth the money and he just has an updated edition he's recently released.

In an industry that's so focused on no and you can't have this and don't purchase this, it's refreshing to read a book that tells you yes and teaches you how to feel rich no matter what your income is.

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Money does make you rich, but the way that you decide to spend that money can make you feel rich.

What's a passion you spend money on that enriches your life and makes you feel rich? I'll let you know mine in the comments below.

As always if you enjoyed reading my post feel free to follow me, lightly press the upvote, and share my content on social media so I can provide value to others as well.

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Sounds like a good book to read. I'm going to have to look this one up. We spend so much money on stuff we really don't need. Taking that extra money and investing instead of saving is always a good idea. Crypto made me a much more frugal spender. Like an alcoholic though, some times I go on these spending benders and they usually coincide with crypto bull runs 🤣

That's one thing the book talks about is if you like drinking and quit the wasting you'll have more to spend on the top shelf stuff and lay off the keystone ;)

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Well now it definitely sounds like my kind of book! 😆

And there are sometimes that you do all of the above like cutting out unnecessary expenditures and simplifying your existence.

That allows you to save and then start growing from there

For sure. If you're happy with your life then why not put away some of the extra money for investing in the long term.

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That would be exactly why I keep saving here and I do love compounding my interest.

Completely agree!

I haven't read the book, but I really want to.
I have listen to Ramit on youtube from time to time and he is a clever man :D

I think I already live like this most of the time.
I spent a lot of money food, because I like cooking :D

I have cutted out all streaming services, I only signs up for Netflix every 4 months for 1 months to watch their documentaries :p

Yeah, we've started doing this as well. Since there is no advantage that I'm aware of for signing up for a year, we will hop between streaming services depending on if they have something we want to watch at the time.

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I learn to appreciate what I have rather than what I want. The more appreciation the more I feel grateful for. A desire to want won’t make life richer but a desire to live will. Society has made majority of us to believe chasing money and assets as a way to being happy when in fact the real happiness comes from simply living and appreciating the time we have.

With 2020 I have learned that this is key for my mental health with everything that is going on. When I find myself getting overly stressed I ask myself if it's really worth being stressed about.

If it doesn't immediately affect my or my family's health, safety, or well being, it's not worth being stressed over.

What a great reminder and thanks for the awesome comment.

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