How To Splurge Responsibly Once You Build Wealth, According to Ramsey Solutions
Financial discipline is great, but don't let the good life pass you by while you're saving up for it.
Just before the July 4 weekend, George Kamel and Rachel Cruze, Ramsey Solutions network personal finance pros and cohosts of The Smart Money Happy Hour Podcast, sat down to discuss the rewards of wealth while sipping some red, white and blue mocktails for a video on their YouTube channel.
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Both are staunch advocates of frugality in the pursuit of saving and achieving a debt-free lifestyle. However, the hosts agreed that the point of building wealth is not to pinch pennies forever and that splurging wisely when you can afford it brings meaningful upgrades that add value to your life and can keep the money flowing in.
When Do You Earn a Taste of the Good Life?
The duo started by reiterating that regularly treating yourself to anything substantial can only happen after you have built a strong financial foundation. They suggested following Dave Ramsey’s signature Seven Baby Steps:
Save $1,000 for a starter emergency fund.
Use the snowball method to pay off all non-housing debt.
Complete your emergency fund by saving three to six months of expenses.
Invest 15% of your income for retirement.
Save for your children’s college fund.
Pay your mortgage off early.
Grow your wealth and give to charity.
Cruze and Kamel agreed that most people are ready to indulge in some hard-earned wants somewhere between steps four and six. The hosts went on to explain how achieving the financial freedom to splurge has benefited them, improved their lives and finally made all the scrimping and saving worth the effort and sacrifice.
Below is where they said you can consider splurging.
Services That Buy Back Your Time
House cleaning: The hosts discussed the joy of coming home to a spotless house that they didn’t have to clean themselves.
Lawn care: Both agreed on outsourcing jobs like mowing and edging to professional crews with better equipment, who can complete a big job in minutes.
Grocery delivery: Cruze said that she believes paying someone to do her Costco shopping actually saves her money in the long run by eliminating the temptation of in-store impulse purchases.
Furniture delivery and assembly: Kamel talked about the worthwhile convenience of paying for white-glove services that keep you from lugging in furniture or the tedium of putting it together.
Travel Convenience and Comfort
Better flights: Cruze and Kamel said they are both willing to pay extra for direct flights and less stressful departure times.
Seat selection: Kamel said he will always upgrade to choice seating to guarantee he can sit next to his child.
Airport valet parking: Cruze expressed appreciation for airport valet services, which bypass the preflight stress of finding an open parking spot in a crowded garage.
Room service: Cruze’s favorite hotel splurge is getting eggs Benedict and fresh juice delivered directly to her room.
Creature Comforts and Wellness
Premium sheets and pajamas: Cruze believes her sleep and overall health improved after she upgraded to high-quality bamboo pajamas, robes and luxury sheets.
Home fitness and health: Cruz said that the high cost of an in-home sauna and home workout center was worth every penny because she can practice wellness and stay in shape without leaving the house.
Spa treatments: Cruze said she was excited about booking a luxurious 90-minute Korean head spa treatment. For experiences like these, you're not just buying the physical comfort, but the joy that comes with it.
Therapy and counseling: Kamel said that investing in therapy is a necessary and highly valuable item in his monthly budget.
Entertainment Upgrades
Concert and sports tickets: Kamel vowed that he is done settling for "nosebleed" seats, sound delays and distant views, which is why he thinks premium seating is an experience worth paying for.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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