How to Win in the Game of Life & Money

Ever since I began taking my personal finances seriously, it’s become increasingly made aware to me that money, and being successful with money, is nothing more than a game.

It has its own set of rules, strategies, and winners and losers.

Most people are not great at the game of money, not because it’s particularly difficult or complex - at least when first starting out - but simply because they have never been taught the rules and strategy of the game.

It’s like expecting someone to be good at chess by just shoving a board and pieces in their face and telling them to figure it out as they go along. It also doesn’t help that our entire society is trying to get you to play the wrong way - telling you to buy the newest “best” thing, competing for your dollars wherever they can.

The strategy of the game of money is very simple, from a basic standpoint - acquire dollars, use those dollars to purchase assets that either pay you more dollars and/or appreciate in value, repeat this process forever, and become wealthy beyond your wildest dreams. 

However, you’ll notice that nowhere in this strategy is there anything about spending the money that you have on things that bring you joy.

And yes, unless you’re spending on assets, spending money is how you lose the game of money. I have seen people, sadly, with extraordinary amounts of income lose the game of money because of their spending. People making $200k per year saving less than $6,000 each year, with very little in cash and very little in assets that will appreciate or pay them more money. But, I bet if you ask these types of individuals if they are enjoying their life, they will tell you resoundingly “Yes!”. They are spending money on things that bring them joy, whether it’s vacations, nice experiences, buying gifts for family members, whatever it may be they have the ability to do what they want.

And this, this is the game of life. The game of life is making memories, connecting with people, having experiences that bring you joy, being part of your community and giving back. And, like most fun things in life, these things cost money.

The good news is, you can do both!

You can win the game of money and the game of life at the same time.  The scoreboard of each is up to each individual, and only you can determine what you want your life and money to look like.

After that, it’s just about being intentional with where and how you place your money. Or, how Ramit Sethi puts it in his book I Will Teach You to Be Rich, “spend extravagantly on the things that bring you joy, and cut costs mercilessly on the things that don’t.”

For example, I value traveling more than I value the quality of my place of residence. So, I don’t spend a ton of money each month on rent, I didn’t go out and rent the nicest apartment in the best part of town with the best views. I chose to room with someone in a less desirable location and a less extravagant place.

And what do I do with these monthly savings?

I have chosen to save those dollars, intentionally, each month into a savings account that I specifically use for travel. And, when the value of this account gets high enough, or my group of friends says let’s go travel and do something fun, I can confidently say yes or plan a specific nice trip that can create memories for me and bring me deep satisfaction - because this is what I value. 

So step one is figuring out what you value.

If it is an early or extravagant retirement, cut costs on some of the fun stuff now and buy more assets as quickly as you can. If you are okay working until age 60 or later, save & invest 15%-20% of your income and avoid credit card debt and you should be on the right track. As long as we’re saving for your future, you can spend the rest however you want! At the end of the day, it’s all about balancing saving and spending, thinking about what you want today and tomorrow, and executing your finances to live your best financial life. 

If you’d like to learn some of the more advanced rules of the game of money, like how to be most tax efficient with your finances, how to create and run a business, or how to properly protect your family financially - click the link below and schedule a free fit meeting to see how we could help you and your family. 

Will