Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

How do I stop feeling guilty about my guilt free spending? #money #iwillteachyoutoberich

18 Apr 2023 · 1 min

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Ramit Sethi answers how to stop feeling guilty about "guilt-free spending." He defines guilt-free spending as money set aside for items you truly love (e.g., convenience, clothes) so you can enjoy purchases without thinking about missed investment opportunities. He advises pre-allocating funds for these purchases and choosing the "most amazing version" of what you value so the spending feels worthwhile and justified.

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How do I stop feeling guilty about my guilt free spending? Why do you guys think I called it guilt free spending? The name is supposed to communicate the point, but okay, the simple way is that when I spend money on my guilt free spending items, they are things that I absolutely love. So for me, you know, I love spending money on convenience, I love spending money on clothes. And when I'm putting on this beautiful coat that just feels absolutely amazing to me, I'm not thinking about, oh my God, this money could have been put into my investment portfolio, which could change my portfolio balance by XYZ percent. No, I'm just thinking, God, I love this coat. This was the most amazing purchase. And at a more lower level, I don't have to worry about the rest of my portfolio because I already allocated money for guilt free spending. That coat was allocated. I would encourage you to really think about the things you say you value. Are they truly the most amazing version of what you can buy with the money that you've allocated?