So the normal disclaimer, any financial advice you see on this blog are based on my opinions from decades in the finance industry. These may or may not work for you. Most finance professionals go on and on and on and on about saving, investing, your retirement they rarely spend time discussing with you how to spend your money. We all have to spend money to live. Food, Gas, gym memberships on and on. So what’s the best way to spend your money?
There are a couple of things here we to discuss before we answer that question directly. One of them is a personal theory, which is your consumption is your most powerful tool to affect the outcomes you want. Simply put, everyone wants your money. Companies, government, entertainers, you name it they work their butts off to obtain your money. If you agree with that theory then you realize when you chose to spend $100 on groceries, where you spend it is paramount. You see you are one of millions who are making that choice.
The game is how do you accumulate thousands (or millions) of people to spend their $100 at “Store X”. Places like Walmart spend millions of dollars every year in an attempt to convince you to spend your money there, and they are successful. You have to be aware of this, step away from it for a moment and then you can really see the best way to spend your money.
What is that? The best way to spend your money is to spend it where it will have the greatest impact that you want. What does that really mean? Well do you want Walmart to make more money? Do you want them to import more products from other countries so you can get cheap products? If so then great you go do that. Do you want to support your local community and improve it directly? Take your $100 and go spend it at a locally owned store.
You’ll get less…. Don’t get me wrong here this isn’t a way to increase your purchasing power and obtain more for your money. There’s nothing wrong with that but if you want your spends to have the greatest impact you have to determine what is important to you and spend your money there, even if it means you get less. That is the best way to spend your money because your money then takes on an even higher value for you. You know that every penny you spend is spent further things that are important to you.
It’s okay to give your money to large companies, maybe they provide money to a charity you believe in and you want to support them, that’s cool. The point here is spend your money for the most impact and figure out what companies are in line with your personal believes. You may get less goods as a result but your return on your spending will be incredible. You’ll know the money you would have spent anyway is at least going to someone (or some company) whom you want to see prosper.
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