HOW TO KEEP BUILDING WEALTH WHILE ENJOYING THE LIFE YOU SAVED FOR
You’ve worked hard, have religiously saved up over the years and have secured a decent financial future for yourself — now what?
According to experts, you don’t have to sit back and live a bland life in order to keep growing your wealth.
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“I believe that living ‘good’ and enjoying life while building wealth is all about balance and mindset,” said Paige Robinson, real estate investor and owner of House Buyers.
“It’s important to prioritize both financial success and personal fulfillment,” she explained. “This means being intentional with your spending, setting financial goals and finding ways to enjoy life without overspending.”
For example, instead of splurging on expensive material possessions, she recommends investing in experiences and building meaningful relationships. “Remember, wealth is not just about accumulating money, it’s also about creating a life that brings you joy and fulfillment. So go ahead and indulge in the finer things, but always keep your long-term financial goals in mind.”
Here are some ways you can keep building wealth while enjoying the life you saved for.
Invest in Short-Term Rental Properties
“I’ve navigated the tightrope walk between enjoying life and building wealth,” said Garrett Ham, attorney and CEO of Weekender Management. “My dual role has afforded me the unique perspective that you don’t have to sacrifice today’s pleasures for tomorrow’s security.”
“One concrete strategy I’ve advised and applied successfully involves investing in short-term rental properties.” He said this investment avenue can be significantly lucrative, offering both passive income and the flexibility to enjoy the properties yourself.
“For instance, a client of mine purchased a vacation home in a coveted tourist destination. Instead of letting it sit idle, they listed it under our management,” he explained. “This property now not only pays for itself through rental income, but also serves as a personal retreat.”
This balance of generating income while retaining personal enjoyment epitomizes building wealth, Ham added, without forsaking life’s finer aspects.
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Opt for Value-Based Spending
“The philosophy of living below your means doesn’t necessarily equate to living a ‘tasteless’ life,'” said Ham. “It’s about making conscious, smart choices. For example, opting for experiences over material possessions can be both enriching and economically savvy.”
“My experience teaching at the University of Arkansas has allowed me to share insights on financial literacy, emphasizing the importance of value-based spending,” he added.
He said this approach encourages people to invest in experiences and items that provide lasting satisfaction over transient thrills, optimizing the joy extracted from every dollar spent.
Embrace a Minimalist Lifestyle
“Embracing a minimalist lifestyle might sound counterintuitive to enjoying life, but in reality, it frees up resources for meaningful engagements and investments,” said Ham. “Cutting down on unnecessary expenses has allowed me to redirect funds towards investments in both the stock market and real estate, compounding wealth while still indulging in well-thought-out luxuries and experiences that align with my passions and values.”
He noted that this mindful approach ensures a fulfilling life today without compromising the financial freedom that tomorrow holds.
Exercise Portion Control
According to Dane Habig, controller at Utopia Property Management, you don’t have to wait 20 years to own that shiny sports car or luxury handbag your partner has been eyeing for the past few months.
“It’s all about a simple shift in mindset to strike a balance between building wealth and enjoying life’s luxuries,” he explained. “Here’s a straightforward solution I recommend. Set aside a small portion of your monthly profits from an investment to cover the installment of the luxury item you desire.”
By doing so, he said you’re not dipping into your emergency fund or monthly budget. “Essentially, you’re acquiring the item almost for free, as it is not impacting your daily budget.”
“The key lies in exercising proper portion control, ensuring that only a fraction of your profits are allocated to this indulgence,” Habig explained. “With discipline, you can afford to live a little and treat yourself. Let’s face it, the reality is by the time our investments mature, we may also be at an age where we might not fully appreciate these indulgences. So live a little and use some of the profits you make to enjoy life.”
Consider Moving Abroad
“I moved from the U.S. to southern Europe in pursuit of a more balanced way of life, better weather, but also for the much lower living costs,” said Gabriel Sturges, owner of Idiomatic Translations USA. “Where I live, costs are about 30% of what they are in the U.S., which allows me to both save money, which I use to heavily invest in stocks and [a] 401(k), and maintain a socially active lifestyle.”
“A friend of mine, who also lives this way, called the term ‘geo-hacking,’ where you work for one country and earn in that currency while living in a less expensive or more tax-friendly one,” Sturges explained. “I’d like to emphasize that I didn’t leave the U.S. only because of costs or to save money. The activities I enjoy and my sense of adventure are much more easily accessible in my current home.”
He acknowledged that this isn’t for everyone, but it works for his sense of adventure — and he has no regrets.
Brian Davis, co-founder of real estate investment club SparkRental, shares the same opinion, noting it can be a significant way to build wealth over time.
“My family and I spend 10 months of the year overseas,” he said. “We enjoy a lower cost of living and great benefits through my wife’s job as an international educator.”
“Those benefits include free furnished housing, premium health coverage for the whole family and paid flights home every year,” he said. “In fact, we aim to live entirely on my wife’s — modest — salary, and save and invest all of my income. We’ve quintupled our net worth in the last five years.”
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This article originally appeared on GOBankingRates.com: How To Keep Building Wealth While Enjoying the Life You Saved For
2024-03-10T22:02:24Z dg43tfdfdgfd