If there’s one idea that’s been drilled into us, it’s definitely this: Your net worth is contingent on your spending habits. However, is there a right way to spend money? Turns out, there is, and what I want to do now is outline the four best ways to spend your money if improving your financial position is a priority of yours.
But, before we dive deep into the 4 best ways to spend money, let me give you a background check about someone that heavily influenced the concept of money spending. The guy goes by the name Milton Friedman, and even a decade after his death, he is still a household name in the world of Economics. Specifically, Friedman was a renowned American economist, born on March 31st, 1912. In 1932, he graduated from Rutgers University with a degree in Mathematics and Economics. He proceeded to Columbia University to clinch a Ph.D. in Economics. Friedman was an economic brainbox, a trait that earned him the Nobel Peace Price of Economics in 1976. And like many scholars of his kind, he left behind an insightful book that serves as an economic reference point to date.
Milton Friedman’s book, “Free to Choose,” counters the prevalent mindset that perceives spending money as a bad thing. If you’re like most people, you’ve probably looked at something nice and refrained from buying it despite having the funds to. You’ve developed a sense of financial insecurity because you keep thinking that you don’t make enough money to spend.
Consequently, spending money is often tailgated with feelings of guilt or even regret because you believe it’s better to save and invest instead. Your scarcity mentality leads you to think that there’s a money-hungry monster out to take all you have. Do you know what else this mentality does? It stops you from securing your financial future and living the life you truly deserve.
The thing is spending money isn’t a bad thing after all! Actually, the negative outlook on spending stems from deep-seated poverty (scarcity) mindset. Most people think that financial resources are so limited that they’ll automatically fall into a financial black hole if they dare give up even an extra dollar. This is a lie, and it’s all in your head.
Ditching this poverty-strewn mindset is the first step towards reclaiming your financial…