2736: 5 Things Every Frugal Person Should Spend Money On by Lisa Harrison of Mad Money Monster

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[00:00:57] This is Optimal Finance Daily Episode 2736.

[00:01:01] Five things every frugal person should spend money on by Lisa Harrison of madmoneymonster.com.

[00:01:08] And I'm your host and personal finance enthusiast, Diana Merriam.

[00:01:12] Welcome back to Optimal Finance Daily, where I'm here with you each and every day to read

[00:01:17] from some of the world's best finance blogs.

[00:01:20] And with that, let's get right to today's article as we optimize your life.

[00:01:23] Five things every frugal person should spend money on by Lisa Harrison of madmoneymonster.com.

[00:01:35] As many of you know, we love the F word in the mad money monster household.

[00:01:40] I'm talking about frugality here.

[00:01:42] Frugality is a major component of our overall plan to achieve financial independence and

[00:01:47] give ourselves the option to retire early.

[00:01:51] But despite being frugal, there are things we spend our money on.

[00:01:54] So if you love frugality like we do, but still want to live a top-notch life devoid

[00:01:59] of deprivation, I highly recommend spending sufficient money in the following categories.

[00:02:05] Number one, health care.

[00:02:08] Health care is one of those areas that, in my opinion, you absolutely cannot scrimp on.

[00:02:13] Your health is paramount to everything else in life.

[00:02:16] Have you ever heard the expression, you have nothing if you don't have your health?

[00:02:20] I'm a firm believer that this is 100% true.

[00:02:24] Anyone who's dealt with major health issues or had a big scare can tell you that the quality

[00:02:28] of your health can have a tremendous impact on your mood and outlook.

[00:02:33] When you're battling poor health, you really don't care about the size of your bank account

[00:02:37] or when you're going to reach your financial freedom number.

[00:02:41] Bottom line, don't be frugal when it comes to your health care.

[00:02:44] Pay for quality coverage, have the routine routine check-in, and have a healthy lifestyle.

[00:02:51] Don't skip any of your recommended check-ups and don't ignore any warning signs.

[00:02:56] Number two, education.

[00:02:59] Mr. Mad Money Monster and I are big advocates of higher education.

[00:03:03] Although we both acknowledge that college degrees, certifications, or technical training

[00:03:08] aren't necessary to become successful and or earn a high salary, we do believe that

[00:03:13] having advanced schooling under your belt can never hurt.

[00:03:16] While we do have some beliefs, we also feel that it's okay to spend money on education.

[00:03:21] Both Mr. Mad Money Monster and I borrowed some money to complete our college degrees.

[00:03:26] And although we do advocate higher education, we also encourage getting that education

[00:03:31] as cheaply as possible.

[00:03:33] Borrowing money for higher education is completely acceptable, as long as you're smart about

[00:03:37] the amount you're borrowing based on your future income potential.

[00:03:41] Be practical about the amount of money you're going to make after completing your education

[00:03:46] and borrow money based on those predictions.

[00:03:49] Number three, quality food.

[00:03:52] This one ties back into number one, health care.

[00:03:56] When it comes to staying healthy and feeling good, the quality of food you consume matters.

[00:04:01] I'm not saying you need to shop exclusively at Whole Foods, although we do love it there

[00:04:06] and buy only things labeled organic.

[00:04:08] But you should definitely take an interest in the overall quality of food you and your

[00:04:12] family eat.

[00:04:14] By taking advantage of coupons and store sales, buying in-season fruits and veggies, buying

[00:04:20] in bulk, and possibly even growing some of your own food, you'll be able to save a ton

[00:04:25] of money without much effort.

[00:04:27] Bottom line, take advantage of in-season fruits and veggies, buy in bulk, and consider growing

[00:04:33] some of your own food.

[00:04:34] Number four, a nice home.

[00:04:37] A nice home goes along with a safe home in my book.

[00:04:40] We're absolutely okay with spending money on a home in a good area and improving that

[00:04:45] home to suit our needs and taste.

[00:04:47] We have spent quite a bit of money renovating our home and have never regretted a single

[00:04:52] dime.

[00:04:53] Granted, our home is on the smaller side, so it's much easier to afford those luxuries.

[00:04:59] Aside from our home being small and cheaper to renovate than a larger home, we're also

[00:05:04] always together making memories in it.

[00:05:07] So we believe that spending money on tailoring it to make us happy is a worthwhile financial

[00:05:12] endeavor.

[00:05:13] Bottom line, spending money on having a nice, safe home is completely acceptable for any

[00:05:19] frugal advocate.

[00:05:20] Your home is where you live, sleep, and breathe.

[00:05:23] Make it yours.

[00:05:25] And number five, experiences.

[00:05:29] Last but certainly not least are experiences.

[00:05:32] There's no doubt about it, spending money on experiences makes us happier than spending

[00:05:36] money on stuff.

[00:05:38] As a kid, we never went on any family vacations.

[00:05:41] The biggest thing I remember our family doing was driving to the beach and back in one day.

[00:05:47] Yep, we drove three hours to the beach, spent the day, and hopped in the car and drove three

[00:05:51] hours home.

[00:05:52] My family simply didn't have the money for anything more than that.

[00:05:56] And that's okay.

[00:05:57] I'm glad my family didn't spend money they didn't have or go into debt to give us vacations.

[00:06:03] But if you do have the money to spend, I highly recommend spending some of it on experiences

[00:06:08] because experiences will last a lifetime.

[00:06:11] Two years ago, we hit the road and embarked on a not so frugal Disney vacation.

[00:06:16] We had a wonderful time, and it is an experience my family will remember forever.

[00:06:21] This year, we plan on taking a three-week road trip out to the Grand Canyon in our van.

[00:06:27] We've joined the ranks of van life and are loving it.

[00:06:31] Although this won't be the cheapest form of entertainment, we plan to save where we can,

[00:06:35] pay cash for everything, and enjoy every single minute of it.

[00:06:39] Bottom line, spend money on experiences that will last a lifetime instead of more stuff

[00:06:45] that'll end up in storage or your next yard sale.

[00:06:52] You just listened to the post titled,

[00:06:54] Five Things Every Frugal Person Should Spend Money On,

[00:06:57] by Lisa Harrison of madmoneymonster.com.

[00:07:00] And I'll be right back with my commentary.

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[00:08:44] I thought Lisa had a pretty good list here on wise things to spend money on.

[00:08:49] A couple more come to mind for me, namely investing in relationships and personal development.

[00:08:55] Investing in relationships is like planting seeds in the garden of life.

[00:08:59] Takes time, effort, and sometimes a little cash.

[00:09:02] Shared experiences not only create cherished memories,

[00:09:06] but also strengthen the bonds that tie us together.

[00:09:09] So why not allocate some funds towards nurturing those relationships?

[00:09:14] Whether it's hosting a dinner party for friends or organizing a family reunion,

[00:09:18] these investments pay dividends in the currency of love and connection.

[00:09:23] And you also have a relationship with yourself to consider.

[00:09:27] This is where personal development comes in.

[00:09:29] It's not just about attending workshops or enrolling in courses, though those are great too.

[00:09:35] It's about carving out the time and space to explore your passions,

[00:09:39] hone your skills, and unleash your full potential.

[00:09:42] Maybe it's finally learning to play that instrument gathering dust in the corner,

[00:09:46] or taking up a new hobby that ignites your soul.

[00:09:49] By investing in your personal growth and development, you're not just enriching your own life,

[00:09:54] you're also empowering yourself to make a positive impact on the world around you.

[00:09:59] But that'll do it for today.

[00:10:00] Thank you for being here every day and listening.

[00:10:02] Have a great rest of your day, and I'll see you tomorrow where your optimal life awaits.