I figure out which splurges are worth it for me because they may help me rest, save time, or do something meaningful for myself and the people I care about. Chances are, you make similar choices. I bet that there's an area in your life that you truly love and would use money to have world-class experiences in it. That may be relationships, travel, or health.
My area is convenience, and I've used money to hire a personal chef, an executive assistant, a personal trainer and more.
But just because I spend when it counts doesn't mean I don't save money, or that I get into debt. I spend smart.
I talk a lot about automating my finances. Every month the money I earn gets automatically put toward my bills, savings, and investments. Afterward, the rest of my money is left up to me to determine how I want to spend it — guilt-free. And one of my favorite things to spend money on is $4 bottles of hot sauce.
This is the beauty of having a conscious spending strategy. When you're intentional about the few areas of life that you truly enjoy and want to develop, you would happily spend to enhance them. And if something doesn't matter to you, forget it.
How you spend your money is up to you. I don't wait until some arbitrary condition that gives me permission to spend my money, like, "I'll go on vacation only if I get a $10,000 raise." I do it when my conditions are met.
Ultimately, what this all means is that: Millionaires understand that the money they earn, beyond what they need to save and invest, is meant to be spent to help them in ways that really matter, like by buying themselves more time.
Once you have your finances in order — paying off debt and automatically putting money in your savings and investments — it's OK to get something if you want and can afford it, especially if it makes life more convenient, or unforgettable, or builds connection to other people, or teaches you something. Do what the millionaires do and focus on the big picture.
Bestselling author Ramit Sethi has been featured in ABC News, CNN, and the Wall Street Journal.
Self-made millionaire Ramit Sethi uses these 3 credit card hacks to save time and money
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