Aimless Saving is For Chumps

Is saving money a virtue?

I don't think so. But there are people who always badger you about "you gotta save money, put away 50% of your income in savings" yadda yadda yadda. It makes you feel guilty for spending any sort of money on yourself, right?

Everything in life is an investment. But there are definitely less profitable investments and more profitable investments.

The $1000 Investment

So lets say you make $20,000/yr and have the option of saving $2000 to grow at 1%/year in your savings account. By next year, you'll be making the same money and have $2020.

Alternatively, what if you used that $2000 to fly to California to attend a mastermind event to learn from the best in the industry. You learn a bunch of new techniques to generate more revenue at work. One guy you start a conversation with at the salad bar happens to share your love of tapioca pudding. He decides to mentor you. He introduces you to other people who give amazing advice.

You use all of these new techniques and your new network to 3X your earning potential. So now you're making $60,000/yr and can put in way more savings than before.

This is just but one sample of the toxic idea that you should always be saving.

Aimless saving to me is terrible. Save enough to support yourself for 3-6 months without a job, but otherwise, use your money to invest in the most valuable thing: yourself.

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Side note: when I say "invest in yourself" I am not talking about college. Getting a degree (for many people) can be THE worst investment they ever make -- especially if they are paying upwards of $40,000/yr for it.

Side note 2: You may have noticed my book isn't out yet! That's not a mistake. I'm busy in New Orleans right now for Collision Conference and want to make sure the book is released right. So delayed until May 15!