The big leap to a better life that many people find hard to make
I’m in my 60s. After a lifetime of working hard and doing all the right things (saving, investing, managing my finances diligently, etc.), I’m in a comfortable place. The house is paid off, there is enough money in retirement. We are doing well, we have enough. But I still find myself reluctant to spend the money. I still have my doubts about reasonable spending; Do I need this, should I choose the cheaper option? I tell myself I’m responsible, I don’t want to waste or waste money even if we have it. But I can also see the pointlessness of building wealth without spending any money. How do I feel comfortable spending more?
It seems that the north star so far has been the accumulation of financial wealth. Naturally, this means that “success” looks like increasing numbers (savings, investments, net worth, etc.).
When that’s the main goal, there’s only one scenario in which declining numbers align with your north star, and that’s taking on “good debt” to create wealth.
Any other spending feels like it goes against your primary goal. Because logically, mathematically, it is. Every dollar you spend is a dollar not saved or invested.
This way, you evaluate each expense against your goal. Often the measure becomes: “Do I really need this?” Maybe this is the formula you were taught about financial responsibility: Meet your needs, restrain your wants. You can justify the “basics” and maybe a little more; But after a certain point, you’ll have a hard time spending on something you don’t really need.
Of course, holidays are a must, but first class flights? Nobody really needs this. Of course, it’s good to eat out once in a while. But a fancy restaurant? Frankly, this feels like a waste of money. Anything that isn’t “necessary” feels like a “waste” relative to the goal of accumulating wealth.
In fact, when you boil it down, beyond security, it is wealth that gives you the option to experience different aspects of life.
But have you ever noticed that there are many rich people who really enjoy their money? They have nice houses, nice cars, kids in private schools and nice holidays. If the goal was simply to maximize wealth, why would rich people spend money?
Some people may think: They’re just wasteful, materialistic, and financially irresponsible. And maybe some of them are. But not all. (I mean, let’s be realistic here; most of them had to have some effort and intelligence to get rich in the first place, right?)
Look, at a certain point the goal changes.
For most people, wealth accumulation is about security. You’re told to save, invest in a well-diversified portfolio, maximize your super contributions, pay off your house – and that’s financial security. If you can reach retirement with a fully paid off home and enough investments to cover your lifestyle expenses through retirement, you’ve made it. You are financially independent.
This is good, sensible advice for most people (I recommend it).
But there is a level beyond security. Yes, one of those levels is power, status, and other games people play. But there is another level; experiencing life on new levels.
When you really boil it down, that’s all wealth beyond security allows you to do. It gives you the option to experience different aspects of life.
None of these aspects are necessary or necessary. They are completely optional. No one “needs” a spare room, a fancy car, or branded clothes. These are, in a sense, a luxury, and luxury is not a “necessity.” It’s an experience.
So the real question is “How will I spend the money?” not. Or rather, what excites you? What parts of life do you want to experience more? What haven’t you discovered? What brings you pleasure? And how can your wealth enable you to experience more of this?
Do you want to be super fit? Hire a personal trainer. Do you love nature? Spend more time at the beach. Do you enjoy travelling? Go more often. Do you have hobbies that you could not discover when you were younger, such as art, sports, music, etc., that you can pick up again now?
The goal is not to spend for the sake of spending. The goal is to experience more from life. When this becomes your north star (not the accumulation of wealth), then spending money does not conflict with your goal, but becomes something that can facilitate, accelerate and enhance it.
The transition from wealth accumulation to entertainment is a transition that many people struggle to make after being stuck in the first stage for a lifetime. But if you are open to it, this is the next chapter of your journey to wealth available to you.
It may not feel easy at first, but I doubt this is a journey you’ll regret. Because in the end, “Could I have made more money?” You won’t wonder. You will wonder: “Could I have lived longer?”
Paridhi Jain is a money and mindset coach who combines practical strategies with mindset transformation to help clients create wealth, greater freedom and fulfillment in work and life. Find Paridhi on: skillsmart.com.au
- The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice, taking into account their personal circumstances, before making any financial decisions.
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Paridhi Jain is a money and mindset coach who combines practical strategies with mindset transformation to help clients create wealth, greater freedom and fulfillment in work and life.
