If you are frugal, you’ll likely never get into financial trouble. I was very frugal saving between 50% – 70% of my after tax income until about age 35. Then I decided there was no point saving so much money if I wasn’t going to live a little. This post will discuss things worth spending max money on for a better life.
The pandemic has really caused our lifestyles to suffer. If there was ever a time to spend money on improving our quality of life, now is the time! Spending more money for a better life is appropriate, especially if you are an investor who has seen your real estate holdings and investment portfolios grow.
Personally, I plan to revenge spend on travel, cars, and homes to my heart’s content. Given all our investments are up strongly since the pandemic began in 2020, we might as well live large in 2022 and beyond!
Being Too Cheap Is No Good
Instead of trying to walk the entire city of Budapest, I ponied up 30 Euros like a baller to get on the Hop On Hop Off bus. Instead of just having lemon water with my rib-eye steak, I started ordering a nice glass of Cabernet Sauvignon. As I pushed the spending envelope a little more each year, I gradually realized I didn’t miss the money. My lifestyle actually got better.
The root of my frugality stems from watching how my parents spent their money. My father always drove a beater and my mother utilized things until the very end. When you’re gunning for early retirement, every single dollar counts. And once you’ve left the work force, there is a lingering fear of running out of money that’s hard to elude until after about the third year.
If you suffer from frugality disease, here are some things worth spending a premium on for a better life.
Things Worth Spending Max Money On For A Better Life
* Mattress. You spend a third of your life sleeping. It makes sense to get the absolutely most comfortable, most supportive mattress you can afford. Go top of the line so each day you are fully rested and rejuvenated for the grind ahead. Just be aware that mattresses have massive markups, which is why there’s been a plethora of mattress startups over the years.
* Vision. Vision may be our most important sense. Therefore, it’s absolutely worth buying the most comfortable contacts or glasses. If you wear glasses, go for the thinnest lenses with anti-reflection and a scratch proof coating. Buy daily wear contacts that contain the latest breathable technology. Stop reusing your disposable contacts beyond their recommended usage. Get sunglasses with UV protection.
* Dental care. Throw away your $5 manual tooth brush and buy the best sonic tooth brush with UV sanitizer that brushes hundreds of times faster per minute. You can’t grow back your teeth or your gums. Floss and brush at least twice a day. Your older self will thank you. You can also try the Snow toothbrush, which has an LED blue light to help whiten your teeth. I just bought one in 2022 and it makes me brush more too.
* Work clothes & shoes. Instead of buying a lot of mediocre quality clothes and shoes, buy only a few items– as if you were building a boutique of high quality items. Purchase only the most finely woven fabrics for your suits and the finest grain leather for your shoes. Sure, you may have to pay 2-3X the average price, but the items will last longer, and you’ll have less clutter.
* Baby care products. Babies are helpless. Buy the most comfortable, waste absorbing diapers possible. Get the right creams for diaper rash. Feed them only the healthiest food. Why risk anything when they are developing their foundation.
More Things Worth Spending Maximum Money On
* Sports equipment. If you’re serious about performance, then you might as well give yourself the best chance to perform by buying the best equipment. You’ve already got enough to worry about trying to improve your physical fitness and skill. I recently bought a sweet softball bat, batting gloves, and nw tennis shoes.
* Prime property. You want to buy property in the most prime location possible. Prices hold up better in a downturn and rise faster in an upturn because there is only a limited supply. Think about prime property as being located at the apex of a triangle under which there’s a huge base that’s always looking to move up.
Related: Housing Expense Guideline For Financial Independence
* Home appliances. Given it costs the same to install a $500 shower head and a $100 shower head, you might as well get the best shower head possible. The same goes for tiles, toilets, bath tubs, hot tubs, cabinets, faucets, floors, molding, and paint. The worst is when a home seller remodels on the cheap. This causes the savvy home buyers to offer low purchase prices because they know they will be ripping everything out again.
* Home theater system. Buy the highest definition TV and most enriching surround sound system and you’ll never want to spend money going to the movies ever again. Given you’re never going to the movies again, you’ll make back your home theater system cost in no time.
* Mobile phone. The average person checks their phone 80 times a day. Some of us who have internet businesses check a whole lot more. Given the data plan costs the same regardless of the quality of phone, you might as well get the best phone possible.
Even More Things To Spend Money On
* Wellness. Massages, physical therapy, acupuncture, therapy, medicine, and coaching are all things worth spending top dollar on. Thanks to technology and globalization, life has become grossly complicated and stressful for many people. Physical and mental health are priceless.
* Vacations. The average private sector U.S. worker receives only 16 paid vacation days and holidays a year. One in four Americans does not have a single paid day off. Therefore, if you plan to go on a rare vacation, you might as well make it the best adventure or enjoy the best amenities possible. If you want 30 or more paid vacation days and holidays a year, work in New Zealand, Italy, Belgium, France, Spain, Germany, Portugal, or Austria. With the economy opening up, it’s vacation travel time!
* Food. Your body is your temple. If you eat junk, you’re going to start feeling and looking like junk. Your energy, mood, and outlook are all affected by the food you eat. It’s worth paying a premium for fresh fruits, vegetables, and fish.
* Car Safety. According to data compiled by the National Highway Traffic Safety Administration (NHTSA), in 2016, 37,461 people were killed in 34,436 crashes, an average of 102 per day. There are supposedly over five million crashes in the US per year. If you have a dependent or a small child, it’s worth buying the safest car you can comfortably afford – even if it means breaking the 1/10th rule for car buying.
* K-12 Education. If your public grade school system has low marks, then either move to an area that has high marks or pay up for a private grade school with high marks. Education is one of the most valuable gifts you can give your child. It was only after I graduated from business school that I realized how valuable a good education was for my career and beyond. Knowledge, confidence, and connections are integral parts to achieving a happy and financially independent life. As for university, highly ranked public universities offer better value if you are paying rack rate.
The Best Purchase To Spend Max Money On
A great book. If there’s no book I recommend everybody buy, it’s Buy This, Not That: How To Spend Your Way To Wealth And Freedom. The book helps you buy optimal personal finance decisions when deciding on your biggest dilemmas.
After spending two years to write BTNT with Penguin Random House, I’ve come to seriously value reading good books. And author uses all his or her wisdom to help you solve a topic and improve yourself. Then the book is edited a dozen times by multiple editors to make the book shine.
Buy and read more books folks! You’ll learn so much for not a lot of money. All the wealthiest people in the world I know are voracious readers.
BTNT will be the best personal finance book you will ever read. You can buy a copy on Amazon today. The richest people in the world are always reading and always learning new things. Learn from those who are already where you want to go.
Identify The Things Most Important To You
It’s important we identify things that are most important to us and spend accordingly. Don’t cheap out on everything on your path to financial freedom! For the most part, I always recommend buying less and focusing on quality over quantity. Having a house full of clutter doesn’t do anybody any good. Further, I’ve never regretted spending up on an experience. Great experiences tend to appreciate with time.
It’s strange, but despite a rising net worth thanks to a raging bull market, I don’t have a desire to buy anything new. I’m content with our cozy home, our one family car, and the scrumptious food we eat every day. Being able to see the best healthcare providers at UCSF for my family is one of the things I’m most happy about. Where I do plan to spend more money on are services to help save time at home. But that will be a topic for another post.
What are some things you value that are not on my list? What are some things on my list you don’t agree with? Any holiday blockbuster deals you’ve seen that are worth taking advantage of? I think I may just buy more Amazon stock instead.
Related: When Is It OK To Forsake Stealth Wealth And Spend Up?
Just wanted to comment on how i liked that the article is recorded as well!!
Thank you for your efforts.
This is an awesome list. I remember skimping on a mattress and being plagued with back pain. Since I got a new one, I don’t have much of a problem with my back. you have also given me a reminder about eye care. I really need to get mine tested and get a really good eyeglass, instead of these cheap reading glasses. Great list!
While I generally believe in buying quality over quantity, shooting for the moon in certain areas of spending isn’t always necessary especially in sports. For example, I have been fencing now for a few years. I plan on continuing to fence for many more years. I could easily justify spending hundreds of dollars on new epees, new top of the line uniform (knickers, specialty shoes, jackets) etc. But I have to be realistic. I’m a recreational fencer. I’ve used the “cheap” blades for the last few years, have had good use and results with them, and have just moved to a slightly more expensive blade which I’m trying out now. I need some new uniform sections just because some of the elastic is finally wearing out, but don’t feel the need to shoot to the top of the line when I’ve found the slightly above basic uniform items I bought have lasted me years, are very comfortable and really don’t have squat to do with actual performance (except maybe the shoes, I’m on the fence with that). After all, I’m not going to be joining any collegiate teams or trying out for the Olympics. I’ll also compare myself to a person I know who did go top of the line from the beginning, six months in and they have quit. They easily spent $2000 or more on equipment, and I’m tempted to call them and see if I can get some of their stuff at a severe discount :-). So while I am of the opinion that you are better off not buying crap that breaks or wears out completely in short order, I believe there is a fine line between buying something that lets you start in a sport or hobby and enjoy it and going too far before you know it’s something you want to continue long term.
Outburst? I wouldn’t call it that. I just have a myriad of personal issues, you might say.
Let’s see… Once upon a time, FS, you used to type about stealth wealth.
That is a philosophy I embrace and live by. To many others (notably the neighbors I’ve mentioned), it’s an alien concept. Yet it is a concept that encompasses the all-important element of personal Security.
Then again I’m an oddball. Cheap/frugal, efficient. Not a product of America’s new century. My own way of life is certainly not for everyone. But it works for me. A product of my life’s experiences, perhaps.
FS, it’s “money in the bank” which is where it makes more money. It falls under Financial Security and being able to sleep comfortably at night (not on an expensive mattress!) without fear of debt.
I shouldn’t be typing this.
Since when did this website invert and become the opposite? The way this thread is unraveling it’s become almost in the same class as your April Fool’s posting. It should be about saving money not spending money. It should be titled what Not To Spend Money On.
Maybe the wife is changing FS’s psyche…
Tyler:
As I said, those are my private notes but you guys asked for an explanation and I furnished it. The only time I posted it online. My lifestyle has forced me to self-analyze myself and I dare say that that probably sounds narcissistic but nobody knows me better than me. If anything, it’s helped me evolve into a financially mature individual (feel free to burn the word Cheep in there; I am what I am). If you can better understand me, you can better understand where I’m coming from and the Why of my decisions and actions. For instance, sporting equipment. I personally have 0 interest in sports therefore I don’t buy sports equipment or related paraphernalia, or fancy sneakers. Perhaps I’m a bit of a masochist but my body’s learned to adapt and what I buy I use until it’s falling apart and unserviceable. My feet can wear anything, including old sneakers with holes in them. No pain, no problem. It’s all filed under Body Coverings for me. I don’t care what I look like. Being a boring stick-in-the-mud, again, means I don’t get girls so all these elements self-reinforce one another.
Today’s Americans–the vast majority are spoiled and narcissistic–have high materialistic standards in choosing partners which I obviously cannot meet so rather than change I no longer try. Being true to myself has always been a part of my credo. My net worth is 7 figures and I didn’t get there by being a spendthrifty sort. In fact I’ve had a range of shitty, low-paying jobs all my life and never had any prestigious degrees to lean on either. The system I used isn’t great but it works, based upon employing extreme self discipline in Not being one of the consumer-programmed masses who embrace and believe everything online and on TV, right down to product placements and celebrity worship.
And I never said that This particular blog was an echo chamber. Again, I was typing in general, and I embrace Sturgeon’s Law. This is one of the few blogs left which I still read on occasion, for I try not to obsess over the online web because I prefer to live in the real world than the cyber one. I don’t even own a smart phone. I carry no mobile tech. I send 1 email each day compared to you guys. From a desktop computer.
The other blog I read is Living Stingy. That guy would probably devote individual posts to each and every item FS listed here and go into excruciating detail on each one, so I could choose which messages to read and which to skip over.
Like mattresses and sporting equipment.
With a much higher number of posts on Financial Samurai about saving and investing, what do you think triggered your outburst on this article about spending?
Example: How Much Savings Should I Have Accumulated By Age?
Totally agree with you here, I mean trying to get people interested in expensive things is a waste of their and our time!
I am in agreement with most of what you put down except sports equipment. For the most part I am a huge believer that the biggest performance games are all technique and player driven. The Equipment is a very small percentage. I can see why you listed it because you are at very high levels of performance in tennis and at the higher levels, you need each percentage point you can get. For most though, I think you skimp, buy used and put in the time until you have maxed your gains from skill development.
Just my perspective, fun read.
It may be a small percentage, but if it can be controlled, then you might as well spend 20 more dollars to buy the nicer pair of shoes that’s lighter weight, and 50 more dollars to buy the nicer glove to make it easier to catch the ball. I’m definitely not buying used tennis equipment that I’ve lost its pop during competition. Just to save 50 bucks! The glory of winning is priceless.
The higher the level you compete, the more important it is to optimize. Which sport do you play?
I play ice hockey and race go karts. My perspective is influenced by the fact that I don’t compete at the highest level in hockey. I have plateaued and just play for fun and exercise as I am not willing to put in the time it would take to compete with the ex pros and guys with college ice time under their belts. In go kart racing though, I have a greater desire to be competitive and have been competitive with budget equipment. I have won many races with a beat up teenage kart but it was because I had the time in to constantly tune the kart, hone my driving skills and basically obsess over how to go faster. Now this is club level racing and while I don’t quite compete with the 2 or 3 national caliber drivers that are local, there is a veteran who consistently challenges them with a kart from the 90’s.
I see your point but personally don’t want to invest the money until I have wrung all the performance possible out of myself. Of course this will likely change when I am further along my financial freedom journey.
Love go karts! Can you buy your own go kart? And if so, don’t newer versions have better performance?
I just picked up softball again after 20 years. So far, I’m just running around in my golf cleats and ankle braces. It’s totally recreational. But the more serious I go, the more I’m going to get some good stuff!
Yes, I bought and race my own against other driver owned karts. This is spec racing so everyone is on the same tire and has the same engine so it is down to driver and the setup of the kart. In my experience, no, new karts do not necessarily equal faster in this case (as long as your used equipment is in good working order).
My 2 data points:
During frustrating times I have resorted to attempting to buy speed by purchasing ‘go-fast’ parts and gained nothing. All of my gains have come from putting in the time and trying different setups until I found speed.
Watching a known high caliber driver finish on the podium consistently with a 20+ year old kart against national level talent.
I’m probably biased a bit because I love beating people with shiny new equipment in my grungy kart.
You misread me. MY NEIGHBORS ARE NOT COMING OVER! I’m speaking generally About my neighbors and Their lifestyle. They may certainly Look over (perhaps with field glasses) but they’re not coming over.
And for the record, I”m an oddball. A non-conformist (re-read all that rot I typed!). I follow my own interests and not the herd. You don’t follow the herd in modern American and you’re labelled. Everyone Assumes. Because of the narcissism epidemic and the power of celebrities and religion, Intelligence and free-thinking are Hated in America these days.
What can I say? I am what I am. Discuss this thread of “things worth spending max money on” – not me.
I can only state that I’ve studied my spending habits over the years and I have a good grasp of their outcomes, good and bad. I think fourth-dimensionally, as in caring and worrying about my future self and I take measures to ensure he doesn’t end up broke or in debt. I’m a wee bit older than you, FS, but not quite in range of senility.
I do know that a brief mental high from purchasing something expensive generally doesn’t last and often results in me kicking myself, calling myself an asshole for being so foolish with my money. Being frugal as a way of life, on the other hand, has long-term benefits. But you’ve another thread about that here somewhere I think, else I’m confusing your site with another’s, where Frugality is differentiated from Cheapness despite both being basically one and the same (the analogy of the half full and half empty glass BS). This is why I take issue with this thread of Things Worth Spending Max Money On. You see, I don’t think there are any left. Or maybe I’m too old to appreciate them. One shot of an expensive wine that lasts a minute of your life, is that Worth the cost? I think not. Unless, maybe you’re on your deathbed at the time.
Ultimately it’s about being financially responsible for your own spending habits. Think about cause and effect. If you really, really want something then by all means go out and purchase it. But also remember that’s a chunk out of your savings which can come back and haunt you later. The death of a thousand cuts in consumerism is all about the cumulative effects of spending a Little here and there and it all adding up in the end as a deficit of your net worth. Be responsible. Better yet, all I ask of you guys is to take personal responsibility for your own finances and don’t play the blame game of targeting the One Percenters or some other villainous group when you yourselves freely gave your bread away. Instant gratification will get you nowhere, despite it being the acceptable meme of capitalism these days.
Oh, and, rutleyh: the truth (whether you believe it or not, consciously or unconsciously) is that you fear losing a debate with me. That is why you fear associating with me. Like so many others you want to be surrounded by “yes” people who think your way and will support your own self-esteem. And that’s why I prefer solitude. There are too many “echo chamber” folks in modern America quick to condemn those with different mind-sets, particularly those who are logical with foresight.
Tim Chan: I would disagree for the simple reason that I have wasted enormous amounts of time, energy, and Money on relationships which all went nowhere.
Now I’ve learned my lesson and that’s why I am where I am now. Had I followed my Heart rather than Common Sense, today I’d probably have little to no networth because of an irrational live-for-today woman.
Thanks JD. What do you spend your high net worth on if you disagree with all my items and don’t have a partner?
JD, some thoughts/responses to your comments:
“Blogs also tend to form cults. Cults of personality, and echo chambers.”
By definition, this blog is not an echo chamber. Sam is confident enough to allow dissenting opinions even when they’re annoying to him. I’ve visited blogs that basically do filter everything out except the ones completely raving about how amazing the blogger is. I avoid those at all costs. There’s a reason you keep coming back to this blog. I definitely don’t agree with everything he writes (see my own comments above), but I do enjoy reading and value his opinion. Sure, this blog is a reflection of his personality, but he’s not constantly talking about himself or why he’s better or above anyone. He doesn’t know everything, just like the rest of us, but he does have a unique perspective that not a lot of people have or are willing to share. That’s what makes a blog interesting to read.
“13 Reasons Why I’m On Peoples Shit Lists:”
You claimed you weren’t a narcissist earlier. This, ironically enough, does sound like the title to one of the most narcissistic blog posts ever.
You sound pretty miserable overall. It sounds like you’ve wanted a relationship but were never willing to make compromises in order to make it worth. And I think now you’re trying to justify who you are now rather than go through the agony of lamenting over past decisions. Just remember that money isn’t everything and that you won’t miss your net worth when you’re dead and gone.
Great list! I appreciate good sleep this year more than any other and totally agree a nice mattress makes a big difference. Same with dental care too! I have an appointment coming up and am so glad I got a new sonicare toothbrush several years ago. They really do make a difference and my dental visits have been much easier since I switched.
Buy the highest quality for the least amount is my mantra. I look for sales, negotiate (for my cars – end of the month – yes, it is real) and use credit cards and loyalty clubs to lower my costs. There are some things where it really doesn’t pay to buy something expense. Over the years, I have bought many golf shirts in the $15 to $25 range. Many brands sell in the $40 to $60 range. Mine have lasted just as long and look just as nice. I wear an $80 watch. Had it for 5 years. No worries. I even bought a pair of brand new looking Lev I jeans at a good Will for $4. They are great. I cook in most nights for the family. Simple but good. I do buy organic for some items.
On the flip side, I value a nice car. I pay for that. My wife values expensive vacations. We pay (and pay and pay) for that. Still, we have saved a boat load of money. I do have the insecurity complex of running out. I admit to that. Every single day, I worry. However, I would rather be a big spender than go through life bitter.
I guess I am a proponent of a balance in life. I like to eat out at a very nice restrauant a couple of times per year. I used to read another financial blog until the blogger crushed a commenter over her enjoying an expensive restaurant every few months. It was amazingly judgmental. There was a whole other way the blogger could have approached that but took the way that passed character judgement on that person.
A general rule I follow is to buy the best quality for things I use every single day such as the mattress and cellphone that are on your list. Not on your list is a well made purse which I do use every day and don’t switch out to match my outfits like some women do. I bought a nice Italian leather purse a few years ago and it still looks great after I recondition the leather every so often.
I agree with quality over quantity but, shit – you’ve wrote down literally every category. Cars, foods, houses, and health are everyone’s largest expenditures. Vacations can also be right up there with your car if you let it.
It depends on where you are in life. If you’re just starting out, it’s probably not a good idea to max your budget on any of these categories except taking care of your health and being close to work. Vacations, cars, and nice phones are completely optional.
– Phone: you can buy an iPhone SE on an MVNO for ~$100 that does literally everything that the iPhone X does, sans “animojis” and face ID scanner. If you can make an argument than you need animojis and the face ID scanner to get ahead in life then I’ll bite.
– Mattress: yes and no. Some people can sleep perfectly fine on the floor and prefer it. I’ve slept like a baby on $300 mattresses. Gotta do what’s right for you. Definitely no one size fits all on this.
– Movies: yes and no. A home theater system could cost you more in the time you spend watching it than the cost of the system itself. Just go out with your friends to the theater once a month.
– Property: once you can afford it, I agree. Buying in the best location that’s suited for your life is what you want to do, not simply buy a house because it’s in a great location – it should be the house suited for you.
– Home appliances: completely agree. I’d rather not deal with a broken appliance. Although, since technology has improved everything, even the cheapest stuff now is better than it was twenty years ago.
– Food: good food (eating healthy) isn’t really that expensive. Shopping a Whole Foods isn’t necessarily going to make you any healthier than shopping at Aldi or “insert discount grocer here”. There’s zero evidence that organic is any healthier. Fruits and veggies are fruits and veggies and it doesn’t really matter where you get them as long as you eat them.
– Vision: for glasses, the cheapest lens is actually the most optically superior, and still adequately tough. As long as your prescription isn’t super strong, the thickness isn’t actually an issue. Polycarbonates suffer from chromatic aberration. And yes, they’re less likely to break, but plastic doesn’t shatter like glass does in the first place.
Sam,
I want to add one more item that we shouldn’t be cheap on — any money that you spend related to friendship or relationship building. Don’t be a bean counter on those. I pretty much agree with your list except the cell phone.
This is a good one, Tim. I totally agree. People should cultivate and value friendship and relationship building more.
Food is definitely my biggest monthly expense and it is worth it. Once I started making over 6 figures I realized that cooking food is just wasting my time because of all the more productive things I could be doing with my time. While I do consider myself a sort of body builder I’m always hungry and if I’m working and worried about where my next meal is coming from and is it healthy sometimes I’m wasting up to an hour figuring out where to eat. Awesome post!
Btw, wanted to let you know this is by far my favorite website. I absolutely love your content. Is there a way you could make it a little bit easier to see all your blogs in like an infinite scroll? I’m find it difficult to find older posts of yours if there not linked to current posts.
How far do you have to travel and wait to eat out though? It’s usually not an insignificant amount of time compared to cooking. And if you’re having it delivered then it’s definitely not an insignificant amount more than cooking. You can have all your groceries delivered and make healthier meals for probably about the same amount of time. The side benefit is that you will save money. There’s also mental benefits to cooking.
I used to think I was going to be more productive eating out than cooking but the reverse turned out to actually be true. If you cook in batches once a week, eat mostly the same things, and don’t eat a shit ton in general, you will likely find that you’ll be in the zone more. The way to REALLY be more productive is to have a girlfriend that doesn’t mind doing all the cooking and cleaning :)