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Optimal Finance Daily - Financial Independence and Money Advice
3381: When It Pays to Spend Money to Save Money by Amanda Brownlow on Intentional Spending
00:08:44
Amanda Brownlow challenges the traditional mindset of extreme frugality by showing how intentional spending can lead to long-term savings
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This is Optimal Finance Daily When It Pays to Spend Money to Save Money by Amanda Brownlow of HelloBrownlow.com when people start to save money, they automatically go for the cheapest option or stop buying things altogether. And while this can be a great way to save money up front, are you actually saving money in the long run? Sometimes spending more money to purchase an item or service pays off and will save you money in the future. Let's look at some great examples of when it pays to spend money to save money. Number one Staying healthy. Staying healthy not only makes you feel good, but you save money in the long term too. Investing in yourself to become healthier or stay healthy is something worth spending money on. While there are ways to stay healthy on a budget, that doesn't mean you can't spend a little extra to feel your best. Spending money on a gym membership that you actually use, home gym equipment, whole food items, supplements and more can keep you healthy. When you stay healthy, you probably won't need to visit the doctor as often and you may even get a discount on your health insurance. 2. Insuring your family insurance policies are another great example of when it pays off to spend money to save money. There are more insurance types than just homeowner's insurance, health insurance and car insurance, including life insurance that will pay out to your family should you pass, pet insurance for when Fido unexpectedly gets sick, and additional disaster insurance for your home for when you know disaster strikes. All of these insurance items do come with a monthly premium, but can allow you financial peace of mind and it pays for itself when something does happen.
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3. Getting financial advice and Financial Planning Spending money to have someone tell you how to save money may seem like a waste of time, but it really isn't. Not if you get good advice, at least. If you don't know what to do with your money, how best to invest it so it can grow, how you can minimize expenses like taxes, or how you can hold on to your money for the long term, a financial advisor will be the best person and will take away your headache. To ensure that your bank account is a lot healthier going forward. You can also find free advice all over the Internet, including my how to Save Money to Invest post. But sometimes you don't have all the answers you need. That's because everyone's financial picture looks different. Before committing to any financial advisor, review their rates and fees before signing any paperwork and number four Purchasing Higher Quality High Use Items what are some of the most used items in your life? Computer Cell Phone Tablet Cars Cookware Silverware Clothing Even if you're a maximalist who loves all the things, you still have favorite items that you use all the time. These are high use items. As I've simplified my life and curbed my shopping habit, I found much value in spending more money up front for higher quality items. These items we've purchased I know will last many years. Do I want to cheap out and find the least expensive options? Sometimes, yeah. But I also use our 72 hour list so I can better plan for these purchases. I can still bargain shop to find high quality items at a discount. Real Life Examples as an example, both my husband's and my phones died at the same time. Our carrier is Google Fi, so I knew phones would be less expensive, but there are a multitude of price points. We opted for the middle of the road. That meant what we could afford to pay for outright and what we needed in our daily lives. That was still a newer model. Could I have purchased the hundred dollar phone? Yes, but I would have grown frustrated with the lack of storage and poor camera. So we paid for better ones and it's been worth it. The same is true for quality cookware, everyday shoes and cars. You may need to save up money to purchase what you really want, but that higher quality item will pay for itself over time because you won't have to buy it again. If you feel like you're spending too much money replacing items, consider taking a no. Spend month or year, then find contentment with your items and your lifestyle. When you figure out what your money goals are, spend accordingly, whether that be on a new spin bike, purchasing a life insurance policy or upgrading your pots and pans so you can cook more at home. Spend with intention because it pays off to spend money to save money.
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I'm a big fan of buying high quality durable items not only because I know they'll save me money in the long run, but also because I really hate shopping. It drains my energy. I'm extremely picky and I get very annoyed when I don't feel like I'm getting an appropriate amount of value out of a purchase. But I recently replaced a few items and I'm feeling satisfied with those purchases. Sometimes you'll have to spend more for quality items that will last a long time, but that isn't always the case. For example, I've been wearing the same one piece black bathing suit that I bought from Target for 13 years. Recently, I went on a beach vacation and it was clear that the suit was on its last leg. It still looked fine, but it's a bit stretched out in the wrong places and it was simply time to get a new one. But that thing lasted me for over a decade and I probably spent less than $20 on it. I replaced it with a suit I bought off of Amazon for $30. I also replaced my hiking boots that I bought six years ago. These are the boots that I walked the Camino in. And for those who don't know, the Camino is a 500 mile trek across Spain that I hiked in 38 days. Back in 2017. They were the first hiking boots that I've ever bought. A good old reliable pair of Merrells. Between my training the Camino and the many hikes I've done over the last six years, I've hiked thousands of miles in those boots. And while the soles are still perfectly sound, the fabric of the boots is really starting to fall apart. So I knew it was time to put them to rest. I simply bought this same exact pair for $145. And that brings us to the end of our time together today. Thank you so much for listening all the way through and I'll catch you tomorrow on our next episode, where your optimal life awaits.