How to get out of cheap mindset?

[jclarke]

Hi,

So I have a few businesses and have income of over 1 crore before taxes this year.

I still look for a bus to the airport, saving maybe 300-500rs one way.

How do I teach myself to spend? I can spend on a cab, but I have always felt uncomfortable taking a cab when alone.

I can improve my mindset but don’t understand what should I tell myself?

I don’t really need anything with the money, and have decent saving investments and asset.

I have been working for 11 years and have possibly saved and invested 95% of my income. Never taught myself to spend.

Besides my investment and business assets, Most expensive expensive purchase would be total travel cost for 5 years to maybe 15 lakhs, alone.
My total wardrobe might be a lakh.

I don’t have to save 500 each day; I’m sure if I’ll get 0.5% extra on my investment, it will cover this, and I don’t care much about getting that 0.5% if it causes too much stress.

 

[rachael3]

@jclarke This is very hard to teach yourself.

My financial situation is in the same ballpark, and i finally have been able to break out of the scarcity mindset that i grew up with. My partner was a great help in this: she grew up much richer than i did, and there is a strong sense of prioritising self and comfort that i head to learn. For example, a red eye flight to a vacation might cost lesser, but you'll end up losing a day of your vacation, and that's not a good start at all. Now i don't have qualms about paying extra to increase my comfort. Still not in the head space to buy biz class tickets, but some day

 

[lauriesinglemom]

@rachael3

My partner was a great help in this

Yeah! Partners are pretty good at getting you spending

 

[rachael3]

@lauriesinglemom To be fair, this is her own money she's spending. Not a gold digger situation

 

[thedancingbaptist]

@rachael3 Valid points. I can correlate your point on business class but I recently took one (with points and some cash) and boy was it a difference. I was going to land at 3 AM and had to be awake all day with kids to take care and the comfort of business class (and sleep) actually gave me the energy for all day. This aligns with your point of red eye flight. I hope you try it soon to see for yourself.

 

[lauriesinglemom]

@rachael3

My partner was a great help in this

Yeah! Partners are pretty good at getting you spending

 

[calebsg]

@rachael3 Adding to this, set an hourly wage for yourself. When faced with a dilemma, see if you end up losing more money in terms of wasted time.

 

[rachael3]

@calebsg That is a great tool. I personally double the number on weekends, to avoid the trap of losing time on the weekend just cos I'm not actively earning money.

 

[ambrose94]

@jclarke Stop calling it cheap mindset. You are just very good with money. You know how hard it is to make money and you are just respecting it.

 

[danielh65]

@ambrose94 Finally someone said it. I don't get the point of calling yourself cheap if it doesn't bother you or your lifestyle!

 

[faithispower]

@danielh65 I think it's bothering OP.

Maybe OP might not be one of those but Some People are actually CHEAP. Maybe it doesn't bother their lifestyle but not making an effort to make your lifestyle better is cheap. Like some people even after earning good amount of money don't invest in good quality clothes. That's just Cheap mentality not any smart mindset. No Single Penny invested in Good Quality Clothes is liability.

 

[emma43]

@danielh65 But limited time on earth n OP wants to change

 

[vkan1989]

@ambrose94 Social media has made it common to shame NOT spending money like it is the last day on Earth.

 

[all4hisglory]

@ambrose94 I’d call it smart mindset.

Most people who can afford to spend lavishly are major contributors towards over consumerism making unsustainable choices, have greater carbon footprint and use their resources carelessly.

 

[resjudicata]

@ambrose94 Tu bhi chindi hai vro

 

[ambrose94]

@resjudicata Mere paas kam paise hai phir bhi jyaada kharche karta hun. Isliye mujhe pata hai paise carefully spend karna kitna mushkil hai. Kabhi kabhi chindi banna itni buri baat nahi hai.

 

[saintdextro]

@jclarke I was in a similar boat, still am to some extent. But I started looking at the value of things vis a vis my time and peace of mind when making these decisions.

For instance: I drove a car myself for 10 years before employing a driver at 20k per month. My overall stress levels halved, easily, and on top of it I can sit in my car, reply to emails, answer questions on reddit (), sleep, take calls etc. The peace of mind I get which indirectly increased my productivity is worth far far more than the 20k I spend.

Similarly, start looking for value in things. To elaborate in your case: your wardrobe: total wardrobe cost is 1L, but would spending some extra money on good outfits when going to professional engagements allow for a better first opinion in the eyes of potential business partners? Will that relationship yield you an income more than the cost of the clothes you buy?

But somewhere I agree it can be a slippery slope where you can overjustify expenses after a point of time, thankfully, I haven't reached there but there has to be a balance.

 

[pushkin]

@jclarke OP what are your areas of interest?

 

[jclarke]

@pushkin Tech ,
Music,
Law,
Finance .

Disinterest:
All sports,
Cars,
Hollywood/Bollywood gossip. Watching movies is fine.,
Politics,
Religion discussion.,

 

[pushkin]

@jclarke See you gotta start somewhere. Expensive goods do add value to your life, and the only way to experience this is by experiencing it. If you're into tech, you can explore home automation in general.

It's okay if you don't like sports cars, but it's important to have a good car, more importantly a safe car, depending on where you live. What are you driving now?