By: Dividend Sensei
Know Thyself; What TRULY Makes You Happy And Focus On Your Passion Expenditures
Step two of a rich and happy life is savings, and having enough of it. Now of course for many people, including several members of my family, this is easier said than done. So the best way to go about savings is with a three pronged approach.
The first is to do a personal audit of yourself, your goals, and most importantly what matters most to you. Specifically to seperate out your passions from other, day to day expenditures. For example, most people feel the most joy from spending time with family and friends. A secondary source of happiness can include simply things like relaxing at the end of the day with some Netflix, the daily things that help you enjoy life and get through through each week, month, and year.
So take the time to think back to when you recall being happiest, and what you were doing then. Was it a family vacation? A celebratory meal at a favorite restaurant with loved ones (this certainly applies to my family)?
Next make those experiences, and the purchases that go with them the priority, specifically long-term goals to work towards, and save towards. After all, the purpose of having money is to ultimately spend it on what makes you happiest, so you need to know what that is.
For myself, I value family and my dog above all, and enjoy spending time with them in a comfortable, safe, and appealing environment, ie a nice house or apartment. So my long-term priority is to, when my parents retire, move us all down to Miami Beach, to a luxuriously furnished penthouse if possible.
Normally I’m a very frugal person, having been through a traumatic few years that taught me to be happy with minimal material goods. However, when it comes to splurging on luxuries a luxurious 4 bedroom, 5 bath 62nd floor penthouse overlooking the Atlantic, and right on the beach, surrounded by family (and two dogs, cause now I can afford that;) is a dream worth nurturing.
Everything else? All the other mundane costs of living, such as cars, clothes, gifts, electronics, I’m much less enthusiastic about. Sure, I’ve always had a passion for cars, and one day, if possible I’d love to own a Tesla, but if there option to subscribe to a robo-Tesla for half the cost of ownership (financing, insurance, maintenance, ect) in exchange for a tesla taxi to pull up within five minutes and take me and my companions anywhere? Well then my priorities are such as that I will most likely go with the more frugal and practical approach.
Which brings me to the second pronge of savings, minimizing your none passion spending.