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This Is Why You Might Spend Money On Experiences, Not Things

This Is Why You Might Spend Money On Experiences, Not Things
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What are the things that you value most? One way to find out is by looking at how you spend your money. You’ve worked hard for your income, and you want to make the most of it. So, what’s really important to you? What are the things that you will cherish, that will always make you smile and will stay with you forever? It is the experiences that will last a lifetime, that you will look back on with joy and appreciation. A tangible purchase may give you a thrill, but consider investing in some memories, instead. Not convinced? Here are some reasons you might want to flip through that entertainment brochure, instead of browsing that product catalog.

Natural Disasters Happen

Life happens. Floods happen. Fires happen. Tornadoes happen. You get the picture. Your life can change in an instant, and a lifetime of accumulation can be lost forever. But your experiences are a permanent part of you. You may lose your photo albums, but the way you felt when you first saw the mountains, the activities you enjoyed on your first cruise, and that sunset you saw over the water in Hawaii — those memories will be with you forever.

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IMG_5643 by Sgarton in morguefile

    Things Go Out of Style, Degrade, Fade, and Disappear

    Do you still have bell-bottoms in your closet? Are your old computers, printers, and CD players still stored in the basement? It seems impossible to keep up with technology or fashion trends — they’re always changing! But your experiences are right here, right now. In fact, you may want to take advantage before you miss something! The rising waters of Venice are not going to recede for you. Old Beijing didn’t wait for you, and neither will the Amazonian rainforests in Brazil. That fantastic new tea shop will close if no one visits, and your favorite drive-in still needs movie-viewers.

    Bristol's Biggest Bike-ride (9)

      Items Change Value

      Though some items do increase in value, there’s no guarantee. Vases can chip, paintings can rip, rugs unravel, and cars lose thousands of dollars in value once you drive them off the lot. But your experiences are priceless. What kind of value can you put on biking your first century ride? What about that time those two dolphins raced alongside your boat, or that proposal you received at Moraine Lake? Do you also suck in your breath when you first see the ocean? After I got my first big job, I immediately treated myself to a Rick Steve’s Tour to Europe — one of the best decisions of my life. Money can’t buy you love, and it can’t buy you that perfect memory either.

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      file1661238517583

        Clutter!

        I don’t think anyone intends to become a hoarder — it starts a little at a time! I want a lifestyle in which I can pack up at a moment’s notice and take an RV across the country! If you’ve ever had to move, you know how cumbersome all of those little knicknacks, holiday decorations, and assorted this-and-thats can become. Forget the stuff — pack up your necessities and head for the coast! And forget those mementos, just take lots of pictures! Digital photos take up space in your computer, not in your house!

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        IMG_5054  Seeman from morguefile

          Shared Experiences

          Your stuff is just yours. Your computer, your car, your clothes, your coffee, your e-mails, your life. Isn’t it better when we share? How about that Cork & Canvas night with your friends? What about a fancy New Year’s Celebration in the city? Will you ever forget that first concert? Or your first time to the theater or the ballet?

          Do you like to be alone on your birthday? How about a group trip to Las Vegas? Or what about a cross-country road trip to see the Corn Palace and the world’s biggest rocking chair? You may not live in a palace, but you and your friends can take a tour of Hearst Castle! Or you can frequent that hole-in-the-wall that you and your friends have been meaning to try. Are you tired of watching your favorite team lose on TV? It’s always a good time at the ball park/court/stadium/rink! And I’d trade gifts for a dinner and game night any day. Create shared memories. They bring you and your loved ones closer together, and they are a great substitution for day-to-day small talk!

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          bang from morguefile

            Change Your Life

            Have you ever heard anyone on their death bed say, “I wish I’d bought that yacht.” Or “If I could have done it all over again, I would have bought that big screen/those diamond earrings?” Life is not about the tangibles. They stay behind when we go, and may be fought over by our descendants! We always want to have loved more, learned more, lived more. The love and memories we leave behind will last. Those unforgettable special experiences — and the hijinks — may be passed on from generation to generation. With every big or little adventure, you create a whole new you. Change your life, change a life! Visit that daughter in another state. Try that sushi restaurant; take your spouse salsa dancing! Take that mission trip and leave with a bigger heart. Live abroad and learn a new language; change your perspective of the world. Or just take a helicopter or balloon ride to overcome your fear of heights and get a whole new view!

            If all the world is a stage, don’t get stuck on the props! Don’t create a mountain of stuff — go out and experience life!

            Featured photo credit: FidlerJan via morguefile.com

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            Last Updated on July 20, 2021

            Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

            Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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            Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

            Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

            Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

            In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

            Break Free of Your Finances

            Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

            When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

            Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

            Though it seems hard to believe, it is really very simple to get financial freedom.

            To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

            While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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            Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

            1. Stop Unnecessary Spending

            We often spend money inwardly, instead of objectively.

            For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

            To stop this habitual spending, log down all your spending over the course of a month.

            Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

            This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

            2. Plan a Monthly Budget

            This is a great opportunity to get serious.

            Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

            Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

            3. Cut-up Credit Cards

            Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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            If not, you may want to consider ridding your life of the burden that credit cards bring.

            Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

            Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

            4. Increase Savings

            There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

            It’s good practice to save up to 15% of your income.

            Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

            Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

            5. Invest Wisely

            Consider investing in funds.

            Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

            To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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            Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

            6. Invest in Gold

            There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

            You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

            Another way to invest in gold is through ETFs (Exchange Traded Funds).

            These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

            With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

            7. Stash Emergency Funds

            Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

            If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

            Make it hard to get your cash.

            Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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            8. Find Fabulous Mentors

            Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

            If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

            There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

            9. Be Extra Patient

            Patience is the key of financial success.

            Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

            So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

            Financial Freedom for All

            Anyone can achieve financial freedom, regardless of their financial circumstance.

            Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

            Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

            Featured photo credit: rawpixel via unsplash.com

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            Reference

            [1] Hartford Gold Group: IRA Retirement Accounts

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