You’ve likely heard that old chestnut of financial advice: Cut out daily lattes at the Starbucks drive-through to decaffeinate your spending. A lot of advice about how to save more money involves cutting down — or outright eliminating — certain “frivolous” expenses.
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On the surface, reducing the funds you spend on coffee and vacations, or luxury items, seems like common sense. However, getting down to brass tacks can sometimes strip the varnish off our financial well-being.
For Liam Hunt, a financial writer, analyst and director at SophisticatedInvestor.com, small indulgences like gourmet lattes can improve your morale, enabling you to be more productive. If allowing yourself that delicious coffee from your favorite barista inspires you to sit down and work, it’s a couple of bucks well spent.
“The key is to ensure that these expenses aren’t impulsive but rather planned indulgences that genuinely contribute to your productivity and overall well-being,” he said. “There’s nothing morale boosting about compulsively buying unnecessary items — small or not.”
Michael Benoit, a certified financial insurance bond advisor who has helped guide clients in making positive financial choices for over 20 years, agrees that treating yourself can actually boost your earning abilities.
“Occasionally indulging in a little luxury can actually have a positive impact on your finances,” he said. “Treating yourself to a fancy dinner after receiving a raise or bonus can motivate you to continue working hard and making smart financial decisions.”
Making Your Office Space a Home Away from Home — Even at Home
As a finance expert and writer, Naomi Strong knows the value of having a comfortable, personalized space to think and work. That’s why she says investing in an at-home workspace that makes you feel motivated can be essential.
Whether you’re running your own show or showing up on the clock, you’ll want a space that encourages your creativity. While spending money on wall art, plants or even a throw rug might feel wasteful, if the decor lights up your imagination, it’s already paid for itself.
“Lacking motivation in your workspace significantly affects productivity, consequently impacting your income as well,” she said. “However, allocating some funds towards upgrading your workspace instills a renewed sense of motivation that enhances your ability to work effectively, ultimately improving your finances.”
Getting a deep-tissue massage or kicking back with cucumbers over your eyes and a glass of sparkling water in your hand might not seem like the pathway to growing your wealth. However, Taylor Kovar, CFP, the founder and CEO of 11 Financial and the CEO of The Money Couple, said pampering yourself can benefit you financially.
“Spending on activities like spa days reduces stress, boosts productivity and improves decision-making, ultimately benefiting your financial well-being,” he said.
While planning vacations might appear like a luxury, he said, travel can help you expand your horizons — far beyond what you’ll see outside the plane windows. He said travel broadens your perspective in ways that can encourage personal growth and even lead to valuable opportunities for networking and cultural exchanges.
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Choosing Top-of-the-Line Products at Full Price
While another common chestnut of financial advice involves always searching for the lowest price available, Ohan Kayikchyan, Ph.D., CFP, money coach, educator, speaker and the founder of Ohan The Money Doctor, learned firsthand that this isn’t always the case.
When Kayikchyan went to purchase a new laptop, he looked for the best price on a laptop that still gave him all the features he needed. However, after only a few months, that laptop started to slow down. Realizing that he needed to focus on quality and reliability over cost, he paid more than double the price for another new laptop — one that is still performing quite well.
“Purchasing high-quality products with an upfront high cost may seem counterintuitive to frugality,” he said, “but, in the long run, it eliminates the need for replacement and repairs.”
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Dressing for Success, Even If It’s Expensive
To paraphrase the popular old song, everyone loves a sharp-dressed person. For Kayikchyan, spending money on well-made, well-fitting clothes that inspire confidence can give your finances a makeover as well.
“Besides having higher quality and durability compared to standard clothes,” he said, “well-fitted clothing can enhance your professional appearance, boost your confidence and lead to increased sales and new promotions.”
Strong agreed, suggesting that you allocate a little more money toward quality clothes that make you look and feel good. Confidence in your appearance can lead to confidence in your abilities on the job, improving your productivity and finances.
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Focusing on Wellness
With the plethora of online content offering everything from yoga on YouTube to TikTok influencers sharing recipes, splurging on a personal trainer might feel excessive.
However, Chris Urban, CFP and founder of Discovery Wealth Planning, said getting a personal trainer can encourage accountability that leads to better results. He’s not alone in the opinion that personal wellness is a positive investment.
Kayikchyan said purchasing high-tech or expensive fitness equipment, like stationary bicycles, can actually save you potential healthcare costs down the road. He said high-tech indoor bikes can offer a variety of workouts that will keep mind and body stimulated, making you more likely to continue your regular exercise regimen.
