6 Things You Can Look Forward to When You Have Money
You work hard to make money, create multiple income streams, and live below your means, which allows you to diligently save every month. At a certain point, you will accumulate enough money to be financially free. But then what? What really happens when you finally reach a goal that you've worked years, perhaps even decades for? For those of you close to your goal, or on track enough to start thinking about this, here's what you can look forward to. (See also: Financial Freedom and Using Passion to Budget)
1. You Can Ignore Individual Costs As Long As You Focus on the Big Picture
Finally, you can breathe a little easier, because even if you don't plan to start reducing your nest egg by withdrawing from it, you can at least start using some of your surplus every month.
As a fellow frugal person, I know all too well the difficulty in picking the more luxurious option when you believe that the lowest cost version will do. A trick you can try is to start ignoring the price (yes, this is not a typo!) and actually buying the option that you want once in a while. Don't do this for everything, of course. In order to still be responsible, you should set a monthly limit on these "lifestyle expenses" and remember that as long as you don't go over the set budget every month, it's perfectly okay to live a little.
2. You Can Take Less Risk
Once you feel financially secure, it isn't a bad idea to be more conservative with your investments than most people recommend. Many high-net-worth individuals simply wouldn't put a huge amount of their wealth in the stock market even if they were decades away from retirement because they just don't need the extra performance.
If you can live off the interest from a high-yield online savings account, why would you want to risk your capital and try to get 8% in the long term, but potentially suffer 50% losses? Sure, you can feel even more wealthy, but is the stress really necessary?
3. You Can Look Long-Term
The more money you have, the more you can take advantage of what's best for you long-term. Paying cash (or financing at an extremely low interest rate) can be financially more responsible than leasing a car for instance, but you need to have the cash on hand first. Investing in the stock market is theoretically more advantageous in the long-run, but you better have the luxury of not needing that money in the short-term. And quitting your job to further your education so you can make even more money in the future? That's simply an opportunity only people with the financial means can make, which is now you.
4. You Can Work Less
There is a sizable portion of our population who simply love what they do, but let's face it — the majority of us work simply because we need that paycheck. And even if we love our work, we can probably find enjoyment by working fewer hours every week. When you have the means, you can start planning your way to a much more enjoyable work environment.
5. You Can Be More Generous to Those Around You
When you are generous, you will truly start seeing your quality of life. You can start tipping more at restaurants, be more generous with gifts for your loved ones, and even help your relatives start a business. Even the most ungrateful person will appreciate your generosity to a degree, and if anything, they will be nicer to you too!
6. You Can Donate to Charity
And you can extend this generosity to people you don't directly interact with by giving some money away to charity as well. When you donate, you feel great too. The power of giving is almost magical, but the best way to understand the feeling is to try it yourself.