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Episode 2633:
Discover how Charlie Johnson's unique approach to managing finances can revolutionize your savings strategy. By focusing on spending money on what genuinely brings joy and cutting out unnecessary expenses, Johnson shares his personal journey of escaping $25,000 in credit card debt in just four months. This method not only promises a healthier bank account but also a happier life by aligning your expenditures with true happiness.
Read along with the original article(s) here: https://www.jackiebeck.com/how-to-save-money-by-spending-on-yourself-no-really/
Quotes to ponder:
"The goal here is to figure out which expenses are important for you to enjoy life, spend money on them, and then cut costs in a big way on everything else."
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[00:00:00] This is Optimal Finance Daily, episode 2633.
[00:00:04] How to save money by spending money on yourself.
[00:00:07] No, really.
[00:00:08] By Charlie Johnson with JackieBek.com.
[00:00:11] And I'm your host and personal finance enthusiast, Diana Mariam.
[00:00:15] Let's get right to today's post as we optimize your life.
[00:00:23] How to save money by spending money on yourself.
[00:00:26] No, really. One day I had a wall. I'd racked up tons of credit card debt through reckless spending, and my last credit card got declined. I was completely broke. I wanted to spend less and pay down my debt, but at the same time, I also wanted to enjoy life and be happy. I decided to look over my credit card statements to figure out where my money was going.
[00:01:41] This is when I had a huge realization.
[00:01:44] I was spending tons of money on things I didn't care about.
[00:01:48] So I made a change. You could save hundreds or thousands of dollars each month and be just as happy as before. Of course, this is easier said than done. It's easy to mistake wants for needs. Maybe you think you need your cable TV even though you rarely watch it. Or maybe you think you're a happier person going out for dinner a few nights a week,
[00:03:00] even though you'd really be just as happy eating at home.
[00:03:03] Or maybe you feel that you need to start? Wouldn't it feel good to save more money each month, to have more money available to
[00:04:23] put towards debt, and to do all of that while still enjoying life and spending on the things are increasingly less important. Here's a quick example. Number one, rent. Number two, groceries. Number three, internet. Number eight, gym membership. Number four, getting lunch with best friend. Number five, Netflix subscription. Now look at your top five or six highest ranked expenses, the most
[00:05:41] important ones. If you spent your money on these things alone, maybe you could cancel your cable TV subscription or eat at home more often. The goal is to spend on the few things that matter the most to you and save your money on the many things that don't. You just listened to the post titled, How to Save Money by Spending Money on Yourself.
[00:07:03] No, really. By Charlie Johnson with JackieBeck.. I definitely wouldn't be able to allocate my finances or plan as clearly without the help from Monarch. In fact, Monarch is the top-rated, all-in-one personal finance app. It gives you a comprehensive view of all of your accounts, investments, transactions, and more. Create custom budgets, set goals,
[00:08:21] and collaborate with your partner.
[00:08:23] And now get an extended 30-day free trial You also get to test your assumptions around what is a need and what is a want. Before I got good with money, I spent a ton of it eating out every day. I believed the narrative that it was too inconvenient for a young single professional in New York City to cook for themselves. But then I tested that assumption and discovered that I actually really enjoyed meal planning
[00:09:41] and batch cooking.
[00:09:43] I ate better, I saved time, and it was wildly more convenient than deciding what I was going