1215: If You Want To Be Bad, Follow A Good Spending Ratio by Sam of Financial Samurai on Getting To Financial Freedom
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And I'm Dan reading you the best personal finance blogs on the web each and every day we put those great blogs into audio form for you, and if you enjoy this crazy idea of reading blogs to you for free, it'd be great. If you could share this podcast with somebody today you can simply email them or text them a link to old podcast, dot, com, or even better. If you're able to subscribe to the podcast right there on their smartphone, two really big help to keep this show going and growing. But I'll keep this. Short for you so for now, let's hear today's post as we start optimizing your life. Sir. If you want to be bad, follow good spending ratio by Sam of Financial Samurai DOT COM. I have trouble spending money on things I. Don't need because value the freedom that money by S-. Enjoying complete financial freedom for the last four years I never want to be forced to go back to work for money again. Once you have financial freedom shooting through your veins. You'll do anything to keep the high going. At the same time I struggle finding a proper balance between my earnings and spending to earn money is why we wake up at five am commute in painful rush hour, traffic tolerate micromanager work eighty hours a week. Start a business, ignore our spouses, neglect our kids, and do all sorts of other selfish things, thus if we sacrifice so much, surely we are entitled to spend a portion of our earnings on things. We don't need to overcome spending dysfunction. I've come up with no brainer ratio to help. People spend responsibly. Let's just call it. The Financial Samurai responsible spending ratio F S to Rs. The Financial Samurai responsible spending ratio, the F. S. two RS says that in order to spend a dollar on something unnecessary one. Must I spend two dollars on something beneficial? I want to spend up to sixty five thousand dollars on my midlife crisis car. My current vehicle is a twenty thousand dollar Honda fit which I'm leasing for only two hundred and thirty five dollars a month because I'm turning forty in two thousand seventeen. It's important. I get an impractical car to make sure I continue to feel like a man. In order to spend sixty five thousand dollars cash on a luxury automobile I need to I spend one hundred thirty thousand dollars on something financially beneficial. One. What are you know I did just that by paying down one hundred thirty thousand dollars of a mortgage, so I can lock in two point three seven five percent, and save myself one thousand fourteen dollars a month in cash flow. If you're looking to refinance or get a new mortgage I highly suggest you do so. By checking the latest rates, online rates are at all time lows in twenty. Twenty twenty due to the corona virus and investors seeking the safety of bonds I recommend checking with credible. My favorite online lending marketplace today not only did I reduce debt and increased cashflow I spent several hours producing to twelve hundred plus word posts about my experience that may help increase traffic to Financial Samurai as well. The posts should help other people who are struggling through the same mortgage refinance situation. Use The F. S. two RS ratio along with targets. If you want to really crush, you're spending guilt then I. suggest you not only follow a two dollars good to one dollar, bad spending ratio, but also set yourself goals to achieve first before spending any money on big ticket items. I was very close to buying my midlife crisis car, but the seller stubbornly wouldn't accept my sixty thousand dollar offer after listing his car for sixty five thousand dollars for one month and. And then sixty three five for another two weeks. He's now off to Asia for three weeks for business. The day before he left, he did come back and say that I could have the car for sixty one thousand, but I stuck to my guns because I wasn't one. Hundred percent sure to other ongoing projects were complete one finalisation of my mortgage refinance and to locking in great tenants by depositing their deposit check. When I gave my sixty thousand dollar car offer, my mortgage officer had said my mortgage refinance was complete and that I had nothing to worry about, but given that the process took almost four months I wasn't taking her word for it as for the tenants, I received a strong verbal indication of interest, but they had yet to sign the lease or give me a four thousand dollar deposit check of course the day. The Porsche seller goes to Korea is the day. Day I. Not only see my new mortgage account details online, but I also get assigned lease and deposit check from the tenants I tried my hardest to waste sixty thousand dollars on a toy I didn't need. But alas the spending God's continue to be against me or perhaps my marathon mortgage refinance and extended tenant search were blessings in disguise with a modified black on black race car. With Black Tint I might be getting five hundred dollar. Speeding tickets left and right. For those looking to sell things, and who aren't getting any offers lower your price for goodness sake time destroys the value of unnecessary things. Especially cars don't be stubborn like the Porsche's seller who originally got a sixty two thousand dollar offer for me just prior to my trip to Europe which he rejected if he decides to sell me the car when he returns from his trip next month, I'm an offer fifty nine thousand because I got one less month of ownership. Oh, how I love to negotiate when I just don't care. Keep your finances in check. Having, a financially responsible spending ratio works because no matter how irresponsible you get with your money, you'll probably always be fine because you did something twice as good. Here are some other examples. I can think of. One Cell Two thousand dollars, worth of clothing, shoes, electronics and other household clutter before paying thousand for the latest ultra high definition TV. To pay down ten thousand dollars of student loan debt before spending five thousand dollars on an international vacation. Three by your parents, a five hundred dollar gift before purchasing those stretchy designer jeans. For Fund fifteen thousand dollars of your child's college savings plan before buying a rolex mill Gauss. Five pay down one thousand dollars in mortgage principal before paying five hundred dollars for concert tickets. and. Six contribute twenty five hundred dollars to your digital wealth manager before spending one thousand, two hundred and fifty dollars on a Louis. Vuitton handbag. It's important to spend the good two dollars I before spending the bad one dollar after spending responsibly, you'll probably think more carefully before wasting any money, and even if you do splurge, you'll feel good knowing how to prior moment of responsible spending. You just listen to the post titled If you want to be bad. Follow a good spending ratio by Sam Financial Samurai DOT COM. And a real quick thanks to anchor for hosting this podcast anchor is the easiest way to make a podcast. They'll distribute your podcast for you, so it can be heard everywhere. spotify apple podcast Google podcasts and many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools allow you to record and edit your podcast, so it sounds great download the anchor APP or go to anchor. Dot FM to get started. And that you do it for another edition of Optimal Finance daily I will be back with you tomorrow as usual so I'll see there for the Wednesday show where your optimal life awaits.