I've subscribed to the newsletter e-mails from Ramit Seth some years ago. And one particular newsletter caught my attention titled "What is your Rich Life?". By a Rich Life, he doesn't mean how many millions you have in your bank account (although money can buy a Rich Life). Instead, he asks these questions to define a Rich Life: What do you love spending money on? Not just “like,” but love. Now ask yourself what it would feel like to quadruple your spending in that area.
In light of the having gone through a bad divorce, getting fired from a job and then facing a pandemic, certain things have changed what matters to me, my money and my values. Material things like fancy clothes aren't as important to me as they may have been a couple of years ago, instead, I value experiences, time spent with family and a better home life (even though I just moved in a much smaller place).
Thus, for me, I would quadruple my spending on:
taking my family and friends for nice dinners at fancy restaurants
staying at 5-star hotels in hot and dry climates for weeks at a time
owning sporty car (because it represents freedom to me)
owning property in four different countries (because I like having a firm base to call home but I don't necessarily will like the climate all year long)
a bedroom full of plants
being able to work from home on my business ventures
taking super long holidays at a moment's notice
visiting my mother more often overseas (twice a year or more instead of only every few years)
help pay for my cousins' education
What it comes down to, is having the freedom to choose how I spend my days without being encumbered by a 9-5 job and the subsequent paycheck that shows up each month. A Rich Life to me is spending that time with friends and family and creating memories without worries while my bills are being paid and my investments are making money. A Rich Life is to have the flexibility to invite my friends to a three-hour lunch without worrying how much it costs or having to hurry back to a dead-end job. Sure, there are some materialistic items that I deem absolutely necessary in order for me to consider it my Rich Life.
One of the things Ramit also stresses is that a Rich Life will look different from person to person (as it should). I find this way of thinking quite refreshing as it does not condone the traditional/societal markers of a "rich life" which is peppered with lots of bling and fancy cars (ok, I do like the fancy car bit though) and keeping up with the Joneses, but instead his examples feature lots of experiences.
Of course, he also realizes that money enables him to do all that he desires. In fact, he has set up particular systems (courses, books etc.) that generate passive income for him in order for him to live a Rich Life. His businesses are set up in such a way, that he can step away for weeks at a time, and they still generate great levels of income.
Clearly, this is something I want to aspire to, as well. I am working diligently on gaining financial independence and freedom, and doing that by leveraging my day job, my side gigs and passive income sources.
How about you? What does a Rich Life mean to you? Have you read Ramit Sethi's most famous book?