“The best use of money is a tool to leverage who you are, but never to define who you are.”—Morgan Housel, author of The Art of Spending Money

If you ever want to know what a culture values, what a country values, look at their tax laws. I will never forget the wisdom shared by Martin Ginsberg, a tax attorney and the husband of Supreme Court Justice Ruth Bader Ginsburg, on how a country’s subsidies reveal the guiding values of its populace through tax breaks or credits. I share this because, simply because it is the law, but that doesn’t mean it needs to be the law that guides your life principles. Similarly, we see titles for the Richest person under 30, or a list of the world’s billionaires on the cover of countless magazines each year, and again, they wouldn’t create the list and place it on the cover if it didn’t sell.

Yet again, the bustling culture projected in the media supports the culture they need to stay in business or to remain in office. This doesn’t answer the question of what it means to live a fulfilling life—a life of contentment.

I start with this point because it would be understandable to mistakenly think that having more money, having the latest trend of décor, clothing, [fill in the blank for the latest trend of anything seen or discussed on social media, television, publications, etc.] is the path to a better life. But the truth is, there is no concrete formula, and your most successful approach to financial freedom, once you have learned the basics of money management, will be unique to your life journey and the lifestyle that nourishes you.

And there in lies the art of spending money.

As we know there are countless books on financial guidance, and having read many of them over the decades, there are constant contradictions, alongside worthwhile bits of wisdom and expertise. Often in the same book.

In today’s episode/post, I am going to be pulling quotes from a recent book that was published, The Art of Spending Money by Morgan Housel, however, this books falls into that category I just mentioned. And my approach to extrapolating useful insights follows his own advice, have a strong filter. We’ll talk about that more later the final point on this list, but essentially, apply critical thinking skills to any book you read, bringing to the table your previous experience and knowledge, so you can know with clarity what is worth grabbing and applying to your life and what is not.

Overarchingly, Housel offers an abundance of wisdom, much of which aligns with living a life of contentment, and that is why I wanted to bring you this list of how to finesse the art of spending.

“Money itself doesn’t buy happiness, but it can help you find independence and purpose—both key ingredients for a happier life if you cultivate them.” —Morgan Housel

How we choose to spend our money is personal, it is something we must make with an independent mind that is wise in knowing when we don’t know something about our finances and to find experts in the fields we need to better understand.

With sound money management skills – budgeting, savings, retirement – topics that have each been discussed at length in the many posts found in TSLL’s Money Archived posts, we can now explore how to best spend our money to live the life that supports, nourishes and brings us peace of mind. Let’s explore 13 ways to do just that.

~Find the Show Notes for this episode on The Simply Luxurious Life blog - https://thesimplyluxuriouslife.com/podcast413 

What I would like to share with you today are 14 foundational pieces that will establish and continue to grow your financial freedom. Whether you work for a boss or work for yourself, I will be sharing how to make your way to financial freedom and also remain financially free once you arrive without being stagnant. In other words, when we are financially free, we now have space, energy and opportunities that we didn't have before. Whether that is creatively because our mind is free to not worry about our finances because we have put into place systems that we trust and know work in our favor, and because we have space mentally, we have more energy to expend on what we love to do instead of what we have to do which leads us to more opportunities crossing our paths because we our present and fully engaged with the moment, bravely being ourselves and dancing with life instead of surviving and just making it through.

Before we explore today's list, I will point out that this is not necessarily the typical list of save more, spend less - thrift, thrift, thrift! I will be sharing with you some examples from my own life that in hindsight demonstrate that playing it 'safe' isn't always a wise move if you want to make the gains (in any respect) that you desire. As well, while yes, we are talking about money, so much of the financial advice we read (but not all - i.e. Deepak Chopra and Kate Northrup along with others) focuses entirely on the logical and mathematical side of how to be financial free, and while that plays a powerful and necessary role - knowing how the monetary world works and basic math regarding interest, etc., there is also a part we cannot know entirely or with certainty and that is why knowing ourselves, living a life of true contentment and being brave enough to find and then embrace our dharma is crucial to remaining financially free.

Find the Show Notes on The Simply Luxurious Life blog - https://thesimplyluxuriouslife.com/podcast388 

The savviness of wise money management encompasses many factors, but one is an approach often overlooked or dismissed: Understanding the difference between a Good Value versus a Good Deal.

Here in the states tax season is upon us, and so many of us may have money on the mind even more than we usually do; however, I often find myself at the beginning of the new year assessing my monthly budget, determining where I am gaining value or unnecessarily causing more tasks and draining money. Ultimately, whenever I sit down to assess my money, my goal is to do so less often, knowing I have invested well, so I can go about the living of my life that I love and trust that my decisions will stand a long duration of time offering the performance, purpose or function I purchased it for.

In other words, I don't want to be shopping for my capsule wardrobe constantly, restocking and replacing worn out jeans that while a great deal, only lasted one or maybe two seasons. Likewise, I don't want to have to be taking my car to the repair shop frequently, or gassing up frequently or even replacing the car itself as frequently (more on what I am hinting at below in our discussion).

When we invest well, and apply the wisdom of purchase great value rather than falling victim to a good deal, we deepen the quality of our overall lives because however we enjoy living them, we can do so without surprise expenditures frequently arising.

Today, I would like to explore a handful of areas of our lives in which investing in Good Value vs. a Good Deal occurs, and to offer explanation as to why paying the large price tag upfront will save more money in the long run, as well as instances when a large price tag upfront is just welcoming more stress throughout the duration of your ownership. Let's get started.

View the Show Notes for the episode here — https://thesimplyluxuriouslife.com/podcast376

"Being in touch with [the essence] of ourselves as we make financial decisions is as good as it gets. Money is a store of life energy, and when we can channel that life energy into an expression of what is most dear to our soul, an exciting alignment takes place between our financial and spiritual lives . . . more than just having enough, our essence is deeply loving, contented, and grateful, not from any effort but as its most natural expression . . . In fact, when we are identified with that part of us that already has enough, that has arrived, that feels efficiency rather than scarcity, impulses of love and generosity arise naturally and without effort." —Brent Kessel, author of It's Not About the Money

Money can seem to be the fix for everything or the curse, but it need not be either, and can be in our control, largely when we shift how we approach our view and role of money in our life.

Today I would like to share with you key insights I discovered after reading Brent Kessel's book It's Not About the Money in which he dives into the unconscious emotional psychological nature money plays in our lives and how and why we make the decisions we make - for better or worse.

Visit the full Show Notes on The Simply Luxurious Life — thesimplyluxuriouslife.com/podcast284

~The Simple Sophisticate, episode #138

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"Enough is the quality of having everything you need and want but nothing in excess, nothing that burdens you." —Vicki Robin, author of Your Money or Your Life

While numerically, there isn't a magic number equated to having enough money due to a myriad of variables, it may seem at first impossible to answer the question at all. However, there are fundamental questions to ask yourself and habits to bring into your daily living that will help you inch ever closer to the number that is right for you.

1. Let go of comparisons

"Comparing ourselves to others is essentially a coping mechanism for our own insecurities." —Rachel Cruze of Love Your Life, Not Theirs: 7 Money Habits for Living the Life You Want

Now more than ever as we live in a world where lives of anyone from anywhere are displayed on social media, refraining from comparing our lives to others' is a mental exercise in willpower. And as we know willpower is finite. A dependable way to combat comparison is to become clear about your own life's path. Become clear about what excites you, what you want to improve upon and create a vision for your life. And then become courageous. Read more about how you can live courageously and the benefits, including eliminating the need for comparison, doing so will invite into your life.

2. Debt is eliminated (within reason)

Debt is a broad term. Many of us, if we own a house, will have a mortgage, and business debt is necessary at different periods of a venture. However, personal credit card debt should be at zero. If you can look at your balances and know you can pay them off in full each month without denting your monthly living budget, your finances are in great order.

~Why Not . . . Get and Stay Out of Debt?

~How to Successfully Have a Credit Card

3. Live within your means

A quote that upon first reading has ever since been part of my vocabulary and approach to money was shared by Suze Orman, "I think the nicest thing you can say about a woman is that she lives well, and she lives below her means." And as we know our means will shift, change and hopefully grow from year to year. As was discussed in last week's Why Not . . . ? post, conducting a financial check-in each year is a great way to determine if you are spending too much or not enough in certain parts of your budget in order to live the life you want.

4. Monthly savings goal exceeds expectations

Currently I am saving for a down payment, and with this goal in mind, I have designated that a certain amount will be put into my money market account each month. When I am able to exceed my target amount, I cannot help but do a little dance. According to financial experts, this is a good sign that you are on your way to having enough money.

5. Spending wisely

Take a moment and check your current spending habits with habits from five years ago. Are you spending more? Spending less? Spending more wisely? Staying within your budget? The key reason to reflect regularly is to spend consciously. If you see that your spending has increased, ask yourself why. Then ask yourself, is it necessary? Am I able to spend more? Living well is not a bad thing to do. The key is to make sure you can afford to do so.

6. Proper attention is being paid to retirement savings

While there is no magic formula for retirement savings, the one thing that won't work is doing nothing. The first thing to do is begin saving yesterday. I know that may be unnecessary to say, but begin now if you haven't already. Then sit down and examine how much you will indeed need to retire so that you can have a goal and then create a plan to make it happen. I have shared many money and specifically retirement savings related posts here in TSLL "Money" archives, be sure to have a look here.

7. Adherence to a monthly budget that supports the life you want to build and live

Massachusetts senator and former Harvard bankruptcy law professor Elizabeth Warren suggested organizing one's monthly budget around these percentages: "Spend 50 percent on needs, 30 percent on wants and 20 percent on savings" (NYTimes). Now you may have to dip into your wants for your needs from time to time depending upon where you live and during different periods of your life, but saving 15-20 percent for retirement, emergency, dreams & vacations is a must for peace of mind and the ability to respond to life's unexpected hurdles and adventures. Similarly, diligently keeping your housing payment (rent or mortgage) to 33% is quite savvy. (Click here to view a simple budget spreadsheet to organize both mandatory and discretionary spending.)

It has been debated that we, as humans have a tendency to move away unconsciously from achieving "enough" rather than towards it (Tim Maurer  Simple Money). However, I would argue that it is a choice, it is an appreciation for what moving towards having enough cultivate in our lives which will then make it all the more attractive once we arrive at our destination. The essential premise to making the shift is understanding the essential questions and the necessary answers to those questions, as well as the habits we need to incorporate into our lives, and it really is quite simple as shared above. Thank you for stopping by and may 2017 be your most financially secure year yet.

~SIMILAR POSTS FROM THE ARCHIVES YOU MIGHT ENJOY:

~Money: Being vs Acting Rich

~6 Steps for Mastering Your Money

Petit Plaisir:

~La La Land 

~winner of the record setting seven Golden Globes this year: Best Musical/Comedy, Best Actor, Best Actress, Original Song, Score, Director and Screenplay

~View and listen to the award winning original song, City of Stars here

I will profess honestly, I am not someone who gravitates towards musicals, and as Refinery29 frankly reminds that's because La La Land isn't a true musical, which might be why I thoroughly enjoyed sitting down for two hours to absorb the colorful sets, simple and thoughtful love story and a reminder to never cease the journey to reach your dreams. However, respectfully, it is a musical. It is a modern musical. Some have compared it to a long list of musicals from the mid-twentieth century, and while particular aspects and scenes were undoubtedly inspired by revered musicals in the past, La La Land is a 21st century musical. It harkens back to the past with coupled song and dance numbers, but it grabs the future with technology's magic and whimsy.

The argument from some is that Emma Stone did not know how to dance, but we must keep in mind neither did Debbie Reynolds when she was cast for Singing in the Rain; however, Reynolds worked her tail off to keep up with an impossibly high talent - Gene Kelly - and executed her role exquisitely. Similar to Stone, it was Reynolds' star power, her authentic joie de vivre and spark that grabbed the audience. Had any dancer been paired with Kelly simply because they could dance, the movie would not have been balanced or as engaging. The woman, who she is, what she exudes, matters as much as her dance steps.  Stone holds her own with the dancing, but much like Reynolds, it is her charisma, her youthfulness and her tenacity that bring her character Mia to life. Ryan Gosling is Ryan Gosling. Movie producers what to sell tickets, and in order to sell tickets there must be chemistry on the screen. Stone and Gosling, paired together for the third time, have undeniable chemistry, and it worked to tell the tale of two passionate individuals enamored with each other but also their dreams to realize what they were ardently passionate about.

I recommend highly that you watch this film in the theater for the reasons New Yorker film critic Anthony Lane suggests: the full effect of the scenery, colors and sets as well as the sound system. Let yourself escape.

~Note: In the taped episode, I incorrectly misspoke and called Gene Kelly Fred Astaire.

https://youtu.be/je0aAf2f8XQ

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Understanding the power of money and becoming the master of it is crucial to a life full of contentment. In today's podcast, the definition of true wealth will be shared along with both monetary and monetary ways to attain it. 

At the foundation of a contented life that instills peace of mind regardless of life's events is financial security. As one of the pillars of a simply luxurious life, this podcast will dive into the essential 6 steps, share tips, strategies and tools on how to create a strong financial foundation regardless of your paycheck.