Money Meets Medicine Podcast
MMM 79: Why Doctors Should Spend Money
Everyone in the personal finance space loves to tell you how you should save money. Including us. It is one of our favorite topics (and a really important topic at that). And that’s great, but what about spending it?
That is exactly what we want to dive into today. This isn’t a completely new topic for us. Ways to spend money that make sense is something we have talked about before. Things like spending to get your time back, vacations, and spending on others (gifts, holidays).
But today we want to talk about spending money in a different way. Today, we want to encourage you to spend lavishly on the things you love. Yes, lavishly. But let me explain the how and why to this idea…
Ways To Spend Money That Make Sense
If you are spending money to get your time back, that is a smart and sensible way to spend your money. Because one of the reasons we make money is to have more time with those we love and doing the things that we love. This is one of my favorite ways to spend money.
For example, I spend money on a sitter so my wife and I can spend quality time together. I gave money back to my employer by going part time so I could have days off during the week with my family. I hire someone to cut our lawn so that I can spend my time doing things that I love. I look at these things as an investment in myself, marriage, and other important areas of my life.
As Ryan notes, time is money so either paying to get your time back or spending your time in ways that you love is so important.
Spending money on the people that you love or giving to charity is another sensible way to spend. Christmas and birthday gifts, surprises, etc. These are all reasons to spend your money that make complete sense. This also includes charities. This is something that can bring you a lot of joy, and I personally do because it is important to me. Making the world a better place in ways that I can, like donating, is a great way to spend money in my opinion.
And we also have previously endorsed spending money on experiences, such as vacations or fun events. Life is about experience so spending on these things is logical.
Traveling is one of Ryan’s favorite ways to spend, for example. Taking time off with ones you love, recharging, and seeing the world in a new way is a great way to spend the money you are working hard for.
But what about spending on things that don’t seem so sensible? Some might even say lavish. You should spend on that too (within balance) and here’s why and how.
Spend Money Lavishly On Things You Love
If you run the numbers, how old will you be and how much will you when you become financially independent? Probably pretty old, I mean we have talked before about how Warren Buffett made most of his money after the age of 60. Investing will be key to your retirement and hopefully earlier financial independence, but let’s be honest you don’t want to wait until you are 60 to do some of the things that you love.
So life is all about balance. As Paula Pant famously says, “you can afford anything, but not everything.”
This is so important when thinking about how you are going to spend your money. Being really clear on your priorities and why you are spending on what you spend your money on is so important.
I personally already talked about how I spend money on outsourcing so I can get my time back. But I went a little overboard and found that I was outsourcing things that I actually enjoyed doing because I lost touch with why and where my priorities were. Make sure you know your money well before you start spending lavishly on things you love.
And with those words of caution, here are some items I spend lavishly on because I love them and they are important to me.
First is fitness. For example, we have both a Peloton bike (use the code DNSZAT if you want $100 off equipment when you get one, too) and a Peloton Tread plus. I have a membership to swim, play pickleball, and golf. Being active is very important to me and something the family and I love.
Second, we take a nice vacation once or twice per year. Vacations are something that create priceless memories as a family. They are non-negotiable for me and I will spend money to have a nice, enjoyable vacation.
Finally, I would like to spend lavishly on a specific sports car. I have been thinking about buying an MX-5 Miata RF specifically. Why? Because it brings me joy AND I know what I am NOT going to spend a lot of money on.
Know What You Are Not Going To Spend Lavishly On
If you are going to spend lavishly on things remember it must be within balance. In order to create this balance, it is important to know what you are not going to spend too much money on.
For me, this is our house, not living in a big city, and we don’t pay for childcare anymore since Kristen is not working full-time right now. These are areas we have decided to not spend a lot of money on so we can spend in areas that are important to us.
So while we encourage you to spend lavishly on the things you love, make sure you are clear on where the boundaries are so you can still reach financial freedom. No one should care more about your money than you, so be intentional about how you spend (and save) it.
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