The 3 things I spend the most on in my 40s

Today, real numbers on how I’m spending my money in my 40s. Last week, I shared To view this email as a web page, [click here]() {NAME}, Today, real numbers on how I’m spending my money in my 40s. Last week, I shared what I spent most of my money on in my 30s, like: - At this point, I was living in NYC. My expenses had more than doubled again. - I saved thousands of dollars every single month by renting. If I’d purchased an equivalent unit — right next door, same square footage, same view — it would have cost me 2.2x more. Instead, I took that money and invested it, which was far more profitable than owning. This is why I always recommend running the numbers! - I began my fitness journey. It took me 4 months to get the courage to walk across the street and hire a trainer. It was about $100/hour. Since then — around 13 years ago — I’ve always paid for a trainer. It’s one of the best luxuries of my life. Fitness is one of the things I’m most proud of. Business came naturally to me, but fitness took a ton of physical and mental work to change. Now let’s talk about what changed in my 40s—and my biggest takeaways from my spending. --------------------------------------------------------------- Today’s newsletter is sponsored by [Facet](). [Facet]() Next Tuesday on the podcast watch me coach a couple who was about to pay $860,000 to their financial advisor—in FEES! This is why I never want you to use an advisor who takes a % of your assets. If you’ve been looking for a fee-based financial advisor, check out Facet. As an IWT listener, Facet will put [$500 into your brokerage account when you invest $5k within your first 90 days](). Sponsored by Facet. Facet Wealth, Inc. (“Facet”) is an SEC registered investment adviser headquartered in Baltimore, Maryland. This is not an offer to sell securities or investment, financial, legal, or tax advice. Past performance is not a guarantee of future performance. Terms and conditions apply. Find special deals here from [all of our sponsors](). --------------------------------------------------------------- What I spent on in my 40s - Now, in my 40s, I spend much more on convenience, travel, and health. - But I spend less on eating out, car, and housing. (On housing, it’s a bigger number than I used to spend, but proportionally lower.) - I still invest aggressively. I invest monthly and then I invest ~80% of major distributions. These contributions + investment growth is where a large part of my wealth has come from. If you want to start a business and increase your income, I have [a very good program on increasing your income](). - After investing for 25+ years, your portfolio starts to truly take on a life of its own. Now, I think more in terms of net worth than cash flow. I’ve seen my portfolio grow and drop, helping me develop patience and calm. I don’t check it very often, but I feel confident knowing it’s there. - My finances are slightly more complicated because my wife and I both run businesses, but in general, they’re very simple. Index funds, cash, a few random stocks and old angel investments...and that’s it. I make it a point to [fight for simplicity](). - I don’t look at the prices at restaurants, grocery stores, or clothing stores. No appetizer or carrot or even shirt will materially change my finances. - I’m really careful about major purchases that have huge implications. Buying a house is the biggest one, then buying a car, and travel expenses. For example, the next time we get a car, we’ll probably lease, and because I’ll want a nice car, that means we’ll probably have a $1,500+ car payment for the rest of our lives. It’s worth being thoughtful about this purchase — which is why I focus on this area, not the price of appetizers. - At the highest level of personal finance, it’s always about the “who”: Who can I bring with me? Who can I be generous with? Who can I surprise? One of my most memorable moments was my 40th birthday, where I brought my friends and family to a resort in Mexico. What a great thing to spend money on. - On a daily basis, I just love being able to eat food that’s healthy and live in a place I love. I feel lucky. I have my dream job, I work with amazing people, I’m married to an amazing woman, and I have great friends and family. Some lessons from my spending: - There’s a lot of luck in my story. I grew up with two educated parents, I had a safe household in a middle-class neighborhood, and I went to college. - Hard work and investing compounds in massive, unpredictable ways. Some of the meetings I had in my 20s ended up paying off 15 years later. The Roth IRA investments in my early 20s, left alone for 20 years while compounding, have also grown a lot. Starting early matters, as does trusting the process. - There’s a season of life for spending money. I don’t spend a lot on bars any more — but I’m so glad I did in my 20s and 30s. That was peak time to go out with friends in SF and NYC. I took a backpacking trip to Europe in my early 20s, which I wouldn’t want to do now. My philosophy is to embrace the season of life you’re in — and be aware of the likely next season. - If you’re consistent with your investing and saving, there’s no need to take massive risks. I have no leverage. I don’t use a whole-life insurance policy (you shouldn’t either). I didn’t “need” 5,000% returns from crypto. I just use a boring, slow, low-cost, long-term strategy. And it works. - There’s so much more to a Rich Life than money. Yes, money is a small, but important, part of a Rich Life. But health, relationships, travel, adventure, working on something meaningful.....those are the things that excite me. The number in my bank account is just a number. I’d love to know if you found this useful. Please write back with what surprised you the most. And send me any questions! Keep an eye on my social media and future newsletters, where I’ll answer as many of your questions as I can. [Signature] P.S. This week on the podcast: [“We have $30k of CC debt. Why did we buy a $10k timeshare?” (Part 2)]() In Part 2 of my conversation with Cristina and Ron, watch the look of shock on my face when I discover the truth about their financial situation: [Ramit Sethi]()   You may be new to IWT. Here's all the stuff we offer [Programs]() [Podcast]() [Netflix show]() [Books]() [Check out our website for more]() Follow Ramit [ig]() [fb]() [tw]() [yt]() [pc]() Was this forwarded to you? Sign up [here](). This email was sent to [{EMAIL}](). If you no longer wish to receive these emails you may [unsubscribe]( at any time. 548 Market St #89946 San Francisco, CA 94104-5401