How To Spend $300

Women with Shopping Bags

I know the best way to spend $300.

  • Withdrawing 4% of your invested money per year is very likely safe enough that your money will never be depleted.
  • Four percent of $300 is $12.
  • There are twelve months in the year.

For $300, you can buy yourself $1 every month forever.

First Building Block

The hardest $300 to get is your first $300.  It might be that you make thirty good decisions, $10 at a time.  I just sold some old star wars action figures on ebay that had been collecting dust.  You could hustle delivering pizzas on the weekends.  Figure out what you like to do and get that money.

Then, spend it wisely.  Turn it into an income producing building block:

Spend $300 on this building block

That first block shoots out a dollar each month, forever.

Build A Wall

That first little block doesn’t look like much, but it’s the cornerstone to a wall of money.  Let’s say you stack a $300 block each month and don’t spend any of the baby dollars they’re producing for you.

After a year, you’ve stacked a dozen $300 blocks, and they’ve produced about 79 little units:

Build That Wall

Let it run another year, contributing the same $300 each month and a cool thing happens.  All those little $1 blocks have added up – there’s 308 of them now – and they’re producing a $1 block of their own!  Think of that little dollar as a grandchild of your original savings.

The beautiful thing that happens when you spend $300 this way is that you gain more wealth AND work less with each passing month.  After two years, you’ve built yourself a pretty nice wall of money producing money for you, forever.

Build A Fortress

What happens if you keep making steady contributions?  You stack blocks on your wall as fast as you can, but eventually your wall just takes over and starts building itself.  When your wealth produces more money than you do, you’re said to have reached the “tipping point” in personal finance.  To me, that sounds more like a financial fortress than a wall and also a really fun place to be.

Conclusion – The Best Way to Spend $300

I was reading a post by Dr. Linus on Framing Your Mind for Money this past week.  It reminded me that I’m not making a choice between saving this $300 and spending this $300.  I’m absolutely spending it.  But I’m going to spend it in the future, over and over and over again.  I encourage you to do the same.

If you’ve got a better way to spend $300, please share it in the comments below.

 

3 Replies to “How To Spend $300”

  1. Love it. Reframe spending as form of saving. The Latte Factor in reverse?

    Our blog posts are multiplying as well. Your freedom post inspired my framing post which inspired this post.

  2. Love it. I came to a similar conclusion except I referred to it as building my Financial Dam in my post 🙂 Eventually you will have income streams that can let you spend in perpetuity.

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