How To Be A Wealthy Spender

How To Be A Wealthy Spender


– How to be a wealthy spender. Most often, when we think
about our financial wellbeing or improving our financial situation, we think about scrimping
and saving and deprivation. And so much of the focus
is of what we can’t have, what we can’t do. Ooh, I really want that,
but can I afford it, can’t I afford it? And all we think about,
how do I earn more money? So we look at, how do I get more money in or how do I save, usually
with an energy of, uh, this money stuff’s all
about what I can’t have. Often, we don’t even look at what’s going on in
our liability drawer, and we don’t even think about our assets. But I wanna just focus for a little bit on today’s video, around the outflow. I’ve said over and over and over that the greatest get-rich-quick scheme is focusing on the outflow. Our outflow, where money
flows out of our life, our expenses, is actually
where our wealth is created. Because that’s where our relationship with how we choose to consume, what we choose to spend our money on, those decisions get made. That’s the point of decision
of whether we end up with a whole lot of stuff we don’t need or whether we really get value from stuff, whether we’re directing stuff
to assets and investing, whether we’re, you know, what’s-the-minimum-repayment-per-month
choice and just filling our
life with liabilities, that’s where the real knife edge is of whether we’re creating a wealthy abundant and financially free life or whether we’re gonna create one of just survival and getting by and constantly being in a
never-enough-money cycle, is all at that point. But if we approach it all from deprivation and what we can’t have, one, it’s no fun, two, we’re often going to make the wrong choices and decisions. So one of the things I really
want you to think about it and go, how can you learn
to be a wealthy spender? We’re not taught how to spend. We’re taught how to earn, we’re taught how to reprieve ourselves, but we’re not taught how
to be a wealthy spender, how to spend with consciousness. Now, I am a lifetime learner and, in the world of money and
finance, I love this stuff. So I’m always reading other people’s work. And there’s a great chap
that I highly recommend you check him out if you
haven’t, and he’s Ramit Sethi. And he wrote a book, “I’ll
Teach You to Be Rich.” Really great, New York Times bestseller. And he uses the phrase, that are you a cheap spender
or a conscious spender? And many people think
being financially smart is about being a cheap spender. Then, people go out and try
and find all the coupons or go to the sales and they’ll buy five crappy-quality t-shirts, because they are on sale not because they want those t-shirts, and they’ll maybe never wear them, but because “they were on a sale.” But so much of the energy
comes from what we can’t have, how little can we have
or how can we beat it? And that’s very different from
being a conscious spender, to saying, first point,
what do I really want, what lights me up, what
really brings me joy, and they need to be conscious about filling my life with those things, and not the unconscious spend triggers that come from either reactive buying, ’cause you suddenly see something that last week you
didn’t even know existed and now you have to have it, because that’s what advertising does. Emotional spending which
gets triggered from either, oh, I’ve worked really
hard so I deserve this. Or, I’m pissed off so I’m going
to go and compensate for it. Or, I’m feeling down, so
what can I fill my life with? Whatever it is, you
could be a high-emotion or a low-emotion spender,
the bottom line is, emotional spending as opposed
to conscious spending, which is going, I really am clear that when I exchanged money in
my life, I get value from it. And so, in this whole area
of being a wealthy spender, one of the key things we’ve
got to be really clear is, is the difference between
a need versus a want. Now, we have covered that in another video which you can go deeper into. But it’s really important
that we get clear when something is a want. Now, the wants. There’s
nothing wrong with wants, we all have wants, and it’s important that we give ourselves those wants, those holidays, those fun things, those doodads that Robert
Kiyosaki talks about. But if we pretend wants are
needs, we lie to ourselves, and then we again can make
very dysfunctional journeys. So part of being a conscious
spender is been deeply honest. Hell yes this is a want, now how do I find a way
to have the things I want and have great financial health, is a very different kind of conversation that a wealthy spender thinks about. How do we make these spend
decisions that are good for us, good for our family,
good for our community, good for the earth and the
environment and, mostly, good for our financial well-being? Then, part of being a wealthy spender is also really being clear on what is the value
exchange in that outflow. So, in order to know that value exchange, that are you ensuring
that you get value back for the money that you’ve give an over, you need to understand what
your life force’s value is. What’s the value of your time? How long does it take
you to earn that money that you’re now going to spend? Now, I don’t want you to go
and take your gross income or, if you’re an entrepreneur,
the top-line revenue, that vanity number that
we’ve spoken about before. Because that’s not the
real amount of money that stays in your life. You’ve got taxes to pay,
you’ve got direct costs, if your an employee
you’ve got transport costs to get to and from your work, or other associated costs to earn that, taxes that then get taken
off, other deductibles. So, what you wanna look at
is, how much of that money ends up in your bank
account, in your pocket, after the cost of earning that money, then you need to divide that by an average number of working hours. Now, typically, that’s an
eight hours a week, say. Many people work more than that, but let’s be generous and
say, eight hours a week, four and a half weeks a month. You can multiply that out and then go, what is your hourly rate? What is your time worth currently in terms of money you spend? So, if you’re about to go and
spend a whole lot of money, go, how much of my life force am I about to exchange for this thing, and is that worth it to me? Because one of the things
none of us can ever get back is time, time to do the
things we really love, yet it’s one of the things
that most people squander. Because we can never get back more time. We can make more money, we
can make more energy even, but we can never make more time. So if you truly start understanding, what is the time of your life
force spent to get that money versus how quickly and
easy we get rid of it, and make sure that that value exchange truly is the value net positive to you. And for that of course, we need to know what is valuable to us, what lights up. So I understand that
value-to-outflow ratio and make sure you are
winning on that side. And then when you are ready to buy stuff, and I’m talking about
some of the bigger things, but even the small things,
negotiate, price around. When you know that you
really want something and you’re clear on
it, you know the value, spend a bit of time to
price around, go online, see if you can get it
previously loved, lightly used. It’s amazing what you can
get on Facebook Marketplace. You do not have to buy new. You’ll also get over this sort of thing that new is good or
buying new means wealthy, or if you buy second-hand
or previously loved somehow means you’re a
cheapskate or not good. Enjoy the fact that there’s amazing stuff that you can get at discount. So, more value to you. And negotiate. Negotiate
on interest rates, negotiate on price, just ask. If you don’t ask, you’re never gonna get. And so, if you’ve got
any resistance to go, ooh, and what will they think? Will they think I’m poor, will
they think I’m a cheapskate, what is it, if I ask for a
discount, if I negotiate? Notice that stuff, because
it’s all just stories that we have in our heads. And it’s so important that you track what is going on with your expenses, and at least once a quarter go in and clear out
the rats in the pantry, those unconscious spends, those direct debits that
have just snuck in there, those subscription payments that are going off that
you’ve forgotten about. There’s a reason the Netflixes
and the Amazon Primes and all of these of the world like these small little
monthly repayments, because they know most people can’t be bothered to look
at them, they build up. So clear those things out of your life. And if you’re not getting
value from something, know that you can stop it and you can always
bring something back in. This is the whole point, you
drive the value in your life. So make it a goal to
become a wealthy spender. And if you need a bit of support on this and you want a challenge, check out the Squeeze the Juice 30-day challenge. It’s an amazing 30-day
structured process for you to go through a whole lot of
different areas of your outflow and transform your
relationship with your outflow and get more value in your life and become a wealthy spender. So in the comments below,
I would love to know, do you consider yourself
a wealthy spender? Are you a cheap spender
or a conscious spender? And now, if you’re watching this anywhere other than over at
TheWealthChef.com, head on over there and, below the video, I’d
love to know in the comments, are you a cheap spender? Or should I say, have you been a cheap spender or a conscious spender around this great definition? And what are the areas in
your life where you know you’ve tended to have
emotional spend triggers that you can now be conscious about, because the first step to
transformation is just awareness. So, have you been an
up-emotion, down-emotion, flat-emotion spender, and
how can you claim back your agency around that? So enjoy this whole journey to learning how to be a wealthy spender, and really realising this is the greatest get-rich-quick way in the world, getting more for the money
that’s already in your life. So remember, your freedom is created just one step at a time. Keep taking those steps.

1 Comment

  1. Tinku's Channel says:

    Thank you so much Ann. appreciate the reminder

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