Most people hear the path to wealth is paved with saving, frugality, and delayed gratification. “Don’t spend money!” is the constant refrain. But what if that conventional wisdom is incomplete—or even wrong?
My personal and professional philosophy is quite different: To get wealthy, you should spend, spend, spend.
Now, before you rush out to buy a new sports car and a walk-in wardrobe, let me clarify. The key isn’t the volume of spending; it’s the discipline to spend on the right things. I try not to work with clients who hoard cash out of fear. I work with people who love the feeling of using their money—but I advise them to direct that flow toward things that grow their future, not diminish it.
The real wealth paradox is this: The difference between getting rich and staying broke is whether your spending creates an asset or a liability.
The Depreciating Asset Trap
The majority of consumer spending goes toward depreciating assets—things that lose value the moment you buy them. This is the financial black hole.
- A brand-new car drives off the lot and immediately loses value.
- The latest gadget is outdated in six months.
- Even an exotic, expensive vacation, while enjoyable, provides memories but zero financial return.
This type of spending is a consumption-based habit. It provides a momentary dopamine hit, but it drains your capital and ensures you must always work harder to fill the hole you just dug. It’s a treadmill.
The Appreciating Asset Powerhouse
Appreciating assets, however, are an entirely different animal. They are wealth-building tools that pay you to own them. This is where disciplined spending becomes a superpower.
When I advise clients, we focus on making sure their spending habits align with creating:
- Passive Income Streams: Spending money on a down payment for a rental property, even a small one, buys you a piece of real estate that can appreciate while simultaneously generating monthly rental income.
- Increased Earning Potential: Spending on a specialized course, a high-value certification, or a business coach isn’t an expense—it’s an investment in your human capital. It increases your skill set, allowing you to charge higher rates or get a better job.
- Business Infrastructure: If you have a business, spending money on a high-end CRM, hiring a fractional CFO, or developing a better website can be the most profitable expenditure you make. It buys you time, efficiency, and scale, which all lead to higher revenue.
- Strategic Connections: Spending money on memberships to exclusive professional networks or attending top-tier industry conferences isn’t about the cocktail party—it’s about accessing the people, ideas, and opportunities that will propel you years ahead.
The Conclusion: Spend With Purpose
The goal isn’t to live like a miser. The goal is to live like an investor—in yourself, in income-producing property, and in business ventures.
A saver’s money sits still, perhaps growing slowly. A disciplined spender’s money is constantly in motion, moving from their pocket into an asset that will immediately start working for them.
If you enjoy spending, embrace it! But take the time to build the discipline to funnel that energy and capital into things that deliver not just satisfaction, but financial freedom. Stop buying things that cost you money. Start investing in things that make you money. That is the true path to wealth.
Oh, by the way, that family trip to the Grand Canyon? That trip to Italy? It’s a great idea. Those experiences give your family memories for years. Just make sure you pay for that trip with interest and dividends, not your principal. The goal is for your assets to pay for your life, not for your life to deplete your assets.
