What Does Rich Mean To You?

What comes to mind when you hear the word rich? Lots of money? A big house, fancy car, expensive clothes? Over the last few years as a personal finance blogger I’ve really changed my perception of what a “rich” person is. To me, rich isn’t a bank account with a lot of money in it, it’s a life where you can live the way you want to without money being an issue. I’ve also learned that there is no such thing as a universal “waste of money”.

Is Frugal The Way To Go?

There’s a lot of personal finance experts out there that seem to make a game out of how little they spend. They forgo hair cuts, vacations, eating out, clothes and more. Some people are happy living a frugal lifestyle, however I know I would be completely miserable only working to save money. This is of course a personal decision, but I’m not going to give up vacations so that I can save 10% more of my income.

What Is Rich To You?

If I asked you to describe a rich life, that wasn’t necessarily all about money, what would it be like? For me I’d like to travel frequently (you probably could have guessed that one!), work about 4 days a week and be able to retire early. Obviously I need money to do those things, but I do not define rich by a number.

Figure Out Your “Thing”

Everybody has a thing that they love to spend money on. Financial expert Ramit Sethi explains these as “money dials”, things that you love to turn the money dial up for! If you ask yourself “If someone gave me $10,000 right now what would I spend it on?” the first thing you think of is probably your #1 money dial.

Ramit talks about the top 10 money dials as being:

Convenience
Convenience can mean buying meal kits like Hello Fresh, taking an Uber to work, paying for parking, etc. Anything that makes your life easier.

Travel
You know I love travel! Traveling as often as you can, but it can also mean spending money on more expensive hotels rather than a hostel or getting that once in a lifetime helicopter ride!

Health / Fitness
Paying for a personal trainer, gym membership, nutritionist, massages, etc. You don’t have to be an athlete to spend money on your health and fitness!

Experiences
I love experiences, and they usually tie in with traveling, but examples are concerts, sporting events, or other live show, an expensive dinner, or something like a boat tour or skydiving! I’m all for experiences you’ll never forget.

Freedom
Spending money on things that give you freedom can be amazing. Maybe it’s flying instead of driving so you have more time, or paying for a housekeeper to free up your spare time!

Relationships
Maybe you love to spoil other people like your spouse, bringing donuts and coffee into the office.

Generosity
Giving to your favorite charity can be a great feeling!

Luxury
Maybe you love to splurge the finer things in life, food, clothing, shoes, etc.

Social Status
Something like your car, house or which brands you wear can convey social status.

Self-improvement
Courses, books, retreats, mastermind groups, or hiring a coach are all ways you can spend on self improvement.

Spend Guilt Free

There are so many personal finance bloggers out there that will put you down for spending any unnecessary money, but that’s not me! I’m all for finding your “money dial” and turning it up! Of course you should have your debt paid off, and make sure your bills are paid, and you’re saving for the future but figure out what you love and use that discretionary money on it, after all, you can’t take it with you!

Share your money dial in the comments! I want to know!