IWillTeachYouToBeRich - What kind of millionaire would you be?

Reader,

Yesterday, I shared 10 examples of extravagances people pay for.

Today, let's dig in deeper. What's going on here?

I think it’s totally fascinating what people spend extra on.

One of my favorite examples: I have a friend who hates waiting in line. So HE PAYS FOR THE DOCTOR TO COME TO HIM. To his house. Like it’s the 1920s and he’s receiving a house call.

Each time I come across someone living their life like this, I lean in because (1) people are spending money in all sorts of creative and interesting ways, and (2) very few will talk about it. Too many secrets and outright lies about high earners and how they spend their money.

It’s why I don’t blink when I have friends who do things like live full time at the Four Seasons. I love hearing how smart people have consciously decided to use their money to live their values, even if those values are different from mine.

Most other people see these stories and think “what a waste.” But there's a bigger game being played here that they're missing.

(Remember, I don’t judge where you spend your money: You define what a Rich Life is, and if you can afford it, I’m all for it.)

What's really going on here...

Running IWT for 15+ years, I’ve seen every conceivable financial situation. And I’ve gone from a middle-class kid raised in Sacramento to the CEO of a company, so I’ve seen my own story change, too.

Let’s assume that as your career progresses, you'll make more than you did at 21. Many of you will make considerably more.

There’s this concept that we love in America that you should keep spending the same way you did in your early 20s. That’s why we love billionaires who fly economy and we love the fact that Warren Buffett has lived in the same house for 60 years.

But the truth is, as you grow your income, your opportunities and choices change. This is an uncomfortable topic that few want to talk about. I do.

Once you earn more, you get the opportunity to align your behaviors with your values. For example, I love convenience — so I pay for a chef and a trainer. Warren Buffett likes living in his old house … but he also flies private. Take a look at other ways Top Performers invest and spend their money:

• LeBron James isn’t training at his local YMCA. He leverages his earnings to spend millions on his body and is setting new standards for longevity

• Elon Musk isn’t tinkering with positioning and pricing. He’s leveraging his knowledge and capital, spending millions to send freakin’ cars to Mars

• One of my readers, Andy, wrote: “My wife and I donate over $2k a month. Biggest line item in our budget”

There comes a time where your success opens up more doors, more opportunities, and more fun things to add to your life. But you have to change the identity you grew up with to accommodate those possibilities.

It’s shortsighted to think you should keep spending the same as you did in your 20s. You’re not the same. And the puritanical belief that your spending choices should stay the same — even when you’ve clearly grown — makes no sense.

Think about it: If you’ve paid off your debts, maxed out your savings account, and you’re earning more than ever … what do you want to do? How can you leverage your gains for an even richer life? If you’re past the basics of personal finance, what do you do?

This question is, by definition, not for everyone.

If you’re trying to pay off debt or get a raise, it’s easy to dismiss it. I get that, because I spent my childhood avoiding appetizers at restaurants. Our family lived a simple, middle-class life. I paid my way through college with scholarships. And after I graduated, there was a period of life where I ate at Google with friends (3x/week) because I was making so little money!

But as I made more, saved more, and learned more, I changed my behavior to unlock new doors. That’s why I don’t judge how you want to spend your money. In fact, I encourage you to really consider how you want to use money to live your values.

Frugality is a great approach — for the right situation and time in your life. But there are other values too: abundance, convenience, luxury, charity, leverage, etc.

Imagine the joy you would feel by being able to send your friend a bottle of champagne for their birthday. Or springing for a babysitter for your friends so they can enjoy a night out with you. Or not thinking twice to cut a check for your friend’s charity.

So here’s my challenge to you: If you’re able to, take $500 and spend it on something extravagant that you previously thought would have been unimaginable.

And after you do it, shoot me an email and let me know the results. I read every one.