4. How to Spend Money Guilt-Free Flashcards
(20 cards)
What is the 2x Rule?
Anytime you want to splurge on something, you must take the same amount of money and invest it as well.
How does the 2x Rule affect spending decisions?
It makes you re-evaluate how much you really want something, as you must be willing to save 2x for it.
What is an example of a splurge amount for someone with less wealth?
$100.
What should be done with extravagant spending according to the 2x Rule?
Match it with an equal investment or a charitable donation.
What is the focus of maximizing fulfillment?
It emphasizes long-term fulfillment rather than momentary happiness.
What are key components to human motivation according to Daniel H. Pink?
- Autonomy
- Mastery
- Purpose
What types of spending are likely to increase overall happiness?
- Buying experiences
- Treating yourself (on occasion)
- Buying extra time
- Paying upfront
- Spending on others
What is the relationship between personality and spending according to research?
Individuals who make purchases that fit their psychological profile report higher life satisfaction.
True or False: Guilt is a common feeling associated with spending money.
True.
How does mainstream financial advice typically affect spending habits?
It often creates anxiety around spending money.
What should you ask yourself to combat spending guilt?
Will this purchase contribute to my long-term fulfillment?
What was Dennis’s strategy to save money on Uber rides?
He gamed the app by dropping his pin in a low surge area.
What happened to Dennis on New Year’s Eve 2015?
He failed his Uber pin trick and ended up with a bill of $264.
What does the author suggest spending money should help create?
The life that you want.
What is the difference between happiness and fulfillment?
Happiness is momentary, while fulfillment is a deeper sense of accomplishment.
What can enhance occupational mastery in spending?
Purchasing items that allow you to perform at your best.
What is a common misconception about spending experiences versus material goods?
That experiences always bring more happiness, which may only apply to certain personality types.
Fill in the blank: The only right way to spend money is the way that _______.
[works for you]
What effect does having more money have on the anxiety of spending?
It does not easily solve the problem of spending anxiety.
What should you do if a purchase does not contribute to your fulfillment?
Move on and find other areas where your money would be better spent.
