The Real Truth Why (some of) the Wealthiest People You Know Find it Hardest to Spend

There are four things you could do with your money: spend it, save it, invest it, or share it.

And guess which one some of the wealthiest find hardest to do? Ironically, it’s the spending part.

On the surface this seems totally bizarre and almost made-up since if you’ve got a ton of money then surely you’re going to want to splash out.

At least a hefty chunk. You know, enjoy life’s luxuries.

Dining out, shopping till you drop and all else that comes with the territory. Though it seems like we’re all doing that! Despite squeezed incomes. Can’t say it’s gonna stick around too long but hey-ho, we shall see.

But here’s the thing, when you work for your money, and I mean really work for it, then you won’t go spending it willy-nilly. You’ll never forget how hard you worked for that money.

All that blood, sweat and tears that went into your pay-check will be felt and I guarantee you that spending the very same cash will not come easily. It’s human nature.

Harder work = higher value

We value what we’ve worked for. And if you’ve worked for your buck, you’ll value it more.

And more than if someone handed you the money.

Everything suddenly looks different in your eyes. £60 spend on one single meal suddenly seems like a waste. Sometimes!

While at uni, I worked this one-off job that was intense. It was a sales role that involved me standing on my feet for 8 hours straight. Literally.

I think I sat down on a stool for about 4mins. I ate when I had time to but otherwise I had to interact with people. For the entire day.

On top of that, the commute was almost 2 hours.

At the end of the day, I was drained, hungry and needing my bed! But when I got paid after my shifts, that money hit differently.

I dunno if you’ve had a similar experience but our hardest grafts always make it harder to splash out!

Money Mindset

Ever since I’ve started working, I see money differently and I bet you feel the same!

Because the harder you work for it, the more valuable it feels.

Think back to that job from high school, the one that was a real grind or your days waiting tables while at uni.

Remember how that money tasted. Now don’t ever let that fade.

Money is valuable and it should never be thrown around. And you’ll also make more informed, rational purchases if your money is harder to come by.

Oh, and that’ll mean it’s harder to let go of and far more likely to stick around.

I’m always intrigued at how different people their money and how they live life in general.

I’m a nosy so-and-so when it comes to personal finances. I can’t help myself!

But I know plenty of people who have ‘made it’ (aka made the moola) and I find it baffling how they just don’t like to spend.

My friend’s grandma being one of them who left her hometown when her parents lost everything.

Now, she owns 5 or 6 properties that she rents out up north.(Psst: if you’re seriously considering a rental property — pay attention to this one thing to boost your ROI).

Guess what? She’ll still walk (rather than take a bus!) because she knows she’ll save herself £1.65.

She’s a massive hoarder and can’t part with her money. It’s sad. She’s in her 80s and sits there with all that cash but has never fully enjoyed it.

Of course I don’t know what it’s like to be in her shoes and having that trauma as a kid but money is there to be enjoyed.

Spending is like a muscle — one that’s worth building (correctly)

Don’t neglect it just because you're hustling. Master the art of conscious spending to enjoy your money while growing it to the max.

Saving money and spending money do not have to be mutually exclusive.

If you can’t do it now you won’t be able to when you can

You wanna know what financial planners find the hardest?

Getting their rich clients to spend during their retirement — basically what they’ve been saving up for their entire lives!

It’s hard to spend what you’ve worked for and have becomes so used to saving, saving, saving.

Thinking about the future and property preparing for it — as you should!

The issue is when spending feels foreign. This thing you never wanted to do, but know you’re told you should.

You money — the very money that you’ve exchanged your time for — should bring you joy. You should be spending your money on things that make you happiest.

Especially during your golden years. But don’t wait that long. You don’t wanna wait to climb a cool mountain somewhere when you’re in your 80s!

To spend or not to spend?

OK, so here are two sets of couples that that have done pretty well for themselves and can now truly sit back, relax and enjoy the ride as they say. Spoiler alert: they’re both still working!

Let’s look at the first couple. Husband and wife both own their own businesses.

They both came from working-class backgrounds and are not afraid of hard work. But it’s not been without sacrifices. This couple have no problem splashing out. And boy do they splash.

They shop designer and are forever eating out. But they’re big investors, too. Especially in real estate.

They have several buy-to-lets. This couple love spending money on others too. They’re one of the most generous people I know. This couple’s motto is work hard, play harder.

Take a look at this second couple:

The husband is a high-flying guy in the City while his wife is a stay-at-home mum. She’s been there for her kids all while her husband was working all those ungodly hours.

And while this couple are rich by most standards, you’d never know. Or at least see it on the outside. They live a far more low-key lifestyle.

Sure, they take vacations but not more than once a year and their house is modest and wholly unassuming.

They don’t spend on designer clothes, hardly dine out and have old cars sitting in their driveway.

For them, saving and investing their cash is what they enjoy. They don’t really like to spend. What some would call frugal they might call normal.

Like the previous couple, they’re investors too but they aren’t ostentatious and by looking at them (and their house), you’d not be able to tell their wealth. Not that you can ever tell much.

But someone’s house it’s usually a good indicator of wealth since when it comes to a house, it’s ever so hard to fake it since in the most affluent of areas, just a 10% deposit is a hefty amount!! But I suppose you never really know, right?

Both of these couples have money. Yet one spends like tomorrow and the other doesn’t. Why? My guess is that the harder you had to work for your money, the less you’ll spend it.

And if you aren’t used to spending, it’s hard to do it when you suddenly find you’re more-than-able to.

There are plenty of rich people who scour the supermarkets thinking twice about whether they should buy that (yes, annoyingly overpriced!) cake. If you work for something (ahem, money), you won’t be able to part with it all that easily. It’s just how we are.

Your choice of partner will be critical on your financial journey

But it’s also down to your mindset and how you were brought up.

Your partner’s spending habits and general attitude to money will also play a massive part. Take that first couple. The spenders.

They’ve both worked hard and are on the same page when it comes to spending. Psst: this is the real reason you must talk money before marriage.

For them, enjoying their money is what it’s all about. What’s use being rich in the grave. Soz. We come and go as we are.

We can’t take our money with us when we’re 6ft under. Might as well enjoy it and use it for good

Once you’ve made money, and a lot of it, you’ll most likely realise that a large part was luck. Not many like to admit that.

You think that makes you sound not-so-smart (in fact just the opposite — you’ll sound self-aware + humble) but it’s so true.

I’ve spoken to people who have made a fortune from selling their biz and they know how things can work in your favour but they’ve also seen businesses crumble.

Money can be so fickle. Markets can move against you in an instant. And if you’re not properly diversified you can get caught out.

The rich know that. More than most. And many of them just aren’t willing to risk that on a $50k jet trip to who-knows-where.

They choose certainty and comfort over the other stuff.

Balance is best

Balance is everything in life. Especially with money. Too far in either direction scares me.

Of course we all naturally lean to one side over the other but be sure not to overdo it. It’s important to have self-control and to know when (and when not) to buy certain stuff.

It’s good to spend. On yourself and on others. But extremes are a no-no. Too giving or too frugal.

The key is to have a nice, healthy balance of an inbetween sorta lifestyle.

Being frugal might seem cool and a great way to save some buck but I’ve realised that if you can’t spend money on yourself, you don’t get to enjoy it.

I saw something funny from this guy on twitter “if you’re young, you’re meant to be broke and if you’re frugal you’re most likely miserable”.

I promised myself I wouldn’t want to be a tight-fisted person who has trouble spending money on things other than necessities just because I’m a personal finance enthusiast.

I find money to treat myself. Always. Every month without fail!

If you can spend on yourself, you’ll be able to spend on others and when you give to others, you actually end up feeling 10x happier than when you splurge on yourself.

So next time you’re feeling down, why not buy your Mamma a box of choccies or a cute scarf. It’ll make her day — and yours.

Life is short so enjoy your money. Spoil yourself and your loved ones every now and then.

Trust me, you’ll feel joy all-round. What’s the use in having all that money if you can’t even enjoy it, or let your kids enjoy it, right?

Go out there and find your groove. Find what makes your money tick for you.

Disclaimer: This blog is not investment or financial advice. It is my opinion only. This blog is not a personal recommendation to buy/sell any security, or to adopt any such investment strategy. Always do your own research before you commit to any investment.

This article has also been published on my personal website: https://kneadyourdough.uk/