If I Like It, I Can Afford It | Proven Principles Of Success Series

Diamond "TinyBoss" Johnson
7 days ago
4 min read

Investing in yourself is often overlooked, yet it is one of the most significant steps you can take toward personal and financial growth. While the phrase “If I like it, I can afford it” may sound simple, it conveys a powerful mindset shift. This post explores how to embrace this phrase when considering various investments—from small comforts like a cup of coffee to significant commitments like a home.

By reframing your thoughts around how you view investments, you can unlock a new perspective that encourages you to prioritize your growth and well-being. Let’s dive into the questions that can guide you in reassessing your mindset about investing in yourself.

Why Should You Invest in Something?

When making any purchasing decision, ask yourself: “Why should I invest in this?” This single question can illuminate the purpose and potential value behind your investment. Take a moment to reflect on different investments you encounter daily, including smaller luxuries or long-term commitments.

Question 1: What is the Overall Benefit of Owning It?

Understanding the overall benefit of an item or experience is critical. Let’s break it down with a few examples.

A Cup of Coffee: Investing in a high-quality cup of coffee each morning can serve as more than just a caffeine boost. It provides a moment of peace, a ritual that enhances your daily routine, and often fuels productivity. For many, this small investment leads to increased focus throughout the day, propping up your performance and, ultimately, your income.
A House: Real estate investment can yield significant financial returns over time. Beyond the foundational necessity of housing, owning property gives you stability and the potential for appreciation. This is particularly evident among high-earning individuals, like those in the top 1% who widely understand the long-term benefits of a home, turning it into both a cozy living space and a valuable asset.

Question 2: How Can This Investment Make a Return?

To think critically about your investments, consider how they can provide returns—both tangible and intangible. Often, investing in yourself can lead to immeasurable outcomes.

Education: Investing in a course or training program can increase your earning potential. Consider how billionaire entrepreneurs like Elon Musk prioritize learning. Musk's continuous personal development, along with significant investments in technology and education, fuels his ventures. When you invest in knowledge, you create opportunities for advancement and innovation.
Health and Wellness: Health investments, such as a gym membership or healthy food, yield both physical and mental benefits. Top earners, like Oprah Winfrey, invest significantly in their health, recognizing that a healthy body leads to a sharper mind, thereby translating to better decision-making in both personal and financial realms.

Question 3: Will This Investment Be Classified as a Business Expense or a Luxury Expense?

Identifying whether an investment is a business expense or a luxury expense can significantly impact your financial decisions. You’ll find that many top earners have a defined strategy for this classification:

Networking Events: Attending high-profile events might seem like a luxury, but for many successful individuals, these are strategic business expenses. They recognize the value of networking and how it can amplify their business opportunities. Individuals like Richard Branson have often emphasized that their networks are as vital as their capital.
Luxury Items: Contrarily, luxury items that do not contribute to your personal or professional growth can often be seen as unnecessary. Shifting your mindset to view less valuable purchases critically can help streamline your spending toward investments that yield returns.

Question 4: In What Ways Can I Turn This into Something Profitable in the Near Future?

Exploring ways to monetize your investments paves the path for a more opportunistic mindset.

Hobbies: Many top earners turn hobbies into lucrative ventures. For example, Jeff Bezos started Amazon as an online bookstore. What began as a personal interest evolved into one of the largest tech companies in the world. Look within your passions—can you transform a hobby into a business?
Self-Care: When investing in self-care practices, like a spa or retreat, think about how such experiences rejuvenate you to work harder. The fulfillment gained from personal investments leads to increased productivity that can eventually convince you of the return on investment.

Question 5: Will I Regret This Investment Later?

This question pushes you to envision future satisfaction. The most successful individuals often engage in reflective thinking to assess the lasting impact of their choices.

Traveling: Many wealthy individuals, like Mark Zuckerberg, emphasize traveling. They understand that travel opens the mind and leads to greater creativity. It might feel expensive upfront, but the broadened horizons and networks formed during travels can propel productivity and opportunities, yielding a significant return over time.
Career Coaching: Investing in a mentor or coach might seem like a hefty expense initially, but the insight gained can be invaluable. Big names like Tony Robbins illustrate this philosophy, as he continually invests resources into expanding his knowledge base and helping others realize their potential.

Conclusion

Transforming your mindset surrounding investments isn't merely about financial metrics—it's about enriching your life, gaining knowledge, and becoming the most fulfilled version of yourself. The phrase “If I like it, I can afford it” encourages a shift in perspective that taps into understanding the value behind each investment.

This mindset aligns with the core principles many of the top 1% adhere to, focusing on self-improvement, financial education, and thoughtful expenditure. Whether it's a daily indulgence or a significant life investment, each choice can carry the potential for growth when framed positively.

By pondering the questions we explored, you’ll cultivate a sharper view on the benefits of investing in yourself and position yourself for resounding success in both your personal and financial journeys.