We’re not bluffing. Everyone wants to save money, but it’s especially challenging in this era of rising living costs and record-high inflation. It’s even more difficult after the COVID-19 pandemic.
But here’s the issue: How can wealthy individuals continue to amass wealth even as they indulge in luxury purchases, exclusive events, and the rarest of items?
The secret lies in how they spend their money.
Alvin, the emerging author of the bestselling book “Earn More After Work,” once revealed that if you know how to spend your money in these three ways, all your expenses become investments, not money down the drain.
The more you spend wisely in these three ways, the more you save:
Spend money to “save time”
You’ve probably heard the saying, “Time is money.” And do you know what eats up most of an average person’s day? It’s not work or household chores; it’s the daily commute.
Research shows that the longer people spend commuting, the less satisfied they are with their lives. If you can spend money to reduce your commute time or make it less agonizing, you’ll enhance your overall life satisfaction.
Money spent not only saves you precious time but can also boost your happiness. For example, amusement parks like Universal Studios offer Express lanes to skip long queues, saving you time and hassle.
Other ways to save time in daily life include upgrading your computer to the latest version, choosing the fastest travel routes, and ordering delivery or preordering online to avoid waiting in lines.
Spend money on “learning and growth”
As Warren Buffet wisely said, “The best investment you can make is in yourself.” The more you learn, the more you earn. Invest in learning and personal growth, including:
- Improving your soft skills
- Enhancing your hard skills
- Managing your finances
- Public speaking
- Critical thinking and decision-making
In essence, the more knowledge you acquire, the more you’ll earn, and it’ll give you a competitive edge in your career. Knowledge is an investment that lasts a lifetime and pays off when applied wisely.
Spend money on “staying healthy”
People have various goals at different stages of life, but there’s one thing essential for all: good health.
Albert Einstein once said, “Compound interest is the eighth wonder of the world.” In other words, if you lead a healthier life, you’ll enjoy higher compound interest as time goes on.
For instance, if you invest $1 million at age 30 with an annual growth of 6%, it’ll grow to approximately $18 million by age 80. But if you invest until age 70, you’ll have only about $10 million. If you can only reach age 60, you’ll have roughly $5.7 million.
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