Part 3 of the 3 part series on Investing, Saving, and Spending
This is part 3 of my 3 parts series on Investing, Saving, and Spending. I hope you enjoyed Part 1 and 2 about Investing and Saving. You can review my archived articles by navigating via the upper right menu on this website.
These are Lessons and Learnings and many I wished I had learned earlier. Still, I am grateful to better understand them today and hopefully pass on some helpful Lessons and Learnings to others.
It has been very enjoyable and rewarding to write and share my website with others. Since publishing my website in January 2026, several of my friends have provided me some of their Lessons and Learnings too. Thank you! Likely, my friends are basically saying “I learned this and I wish I would have learned it earlier.” Thank you for your contributions to my website!
Like most things that I published so far, I would say “just start”, “those little things can make a big difference.”
Some Good Quotes and Take Aways:
The easily shamed will never learn. – Benjamin Franklin and Alain de Botton
Spend money for you, not someone else’s opinion of you.
Your roots determine your fruits. – The Bible - Matthew 7:15-20 and Joyce Meyer
First, invest and save.
When you spend, spend wisely.
Be aware of false prophets.
Time is like money – you can invest it, waste it, and spend it. – Benjamin Franklin
We all have the same amount of time.
Time is money, use both wisely.
If you can control it, you can change it. – Maya Angelou
If needed, change your spending habits.
Keep a journal, don’t trust your memory.
Keep track of your spending.
You will respect, what you inspect.
Therefore, make a budget on what you earn and what you need to spend.
Pay your future self, first.
If you have the means to give, give first.
If you try to pay your future self and/or give what is leftover, you will never pay your future self or give to others.
Most people are about as happy as they make up their mind to be. – Abraham Lincoln
You cannot spend your way to happiness.
I have enjoyed getting feedback and suggestions from friends and colleagues on the content of this website.Thank you for reading and if you see my posts on LinkedIn or Facebook, please make a comment, gesture, and share.Please share Grow in Family, Finance, and Professional Development | Mike Hoferwith your friends and family.
Remember what got you here might not get you there. Was it your money you were spending or someone else’s? Invest, save and spend your own earned money.
Part 3: Spending
First, before spending money, understand what you are taking in (income) and how much you need to live. Define what you really need vs what you want.
#1 Spend on experiences with those you love.
Over the years, I have noticed in many conversations with friends and colleagues, when they talk about what they love most, it normally revolves around who they spend their time with and what they do with them. Rarely do I hear them say that they love their house, car, clothes, jewelry, art, or any material possession. They normally talk about the people they choose to spend their time with and likely an experience they had with those they spend the most time with.
Therefore, spend time and money on having experiences with those you like and love. For me and my wife, when we feel that we can afford it, our experiences get longer and fancier. If we feel that we cannot afford as much, we might do something for less time and/or closer to home. The key is to do something that is a treat, reward, and gives you and your loved ones a new experience.
Some of the ways we try to save as we spend:
Whenever feasible, travel during the off-season or avoid periods that coincide with common vacation times such as major holidays.
Do your research and use VRBO for a larger, nicer experience AND then also check if the VRBO lists the real owner.
Sometimes you can book through the real owners directly and avoid unnecessary fees.
Pay attention to cancelation policies and use them wisely. Book early and cancel if needed vs book late and likely pay more money and possibly not be allowed to cancel.
Collect and use your frequent traveler points early.
As example, my wife Amy, books as early as possible to get the best rates, uses points, and can still cancel if our plans change. Amy really likes Southwest airlines for their policies on booking, canceling and re-booking if a fare drops.
Please have a look at my book suggestion in “Great books, podcasts and videos” - How to Win at Travel by Brian Kelly (founder of The Points Guy)
#2 Spend on financial advisors wisely.
If you are more comfortable hiring a financial advisor because it gets you started on a better financial path, do it! On the other hand, I feel that most of us can open an account like Fidelity, pick good low-cost index funds that I published in my Lessons and Learnings - Investing, set-up automatic deposits, and also not worry too much about the market fluctuations that will happen.
As Example, if a financial advisor earns 1% of $100,000 that is $1,000 dollars. Then, consider how much time you spend with or time you get from your financial advisor. Spending a % of the investment on a financial advisor can be expensive, especially as the base investment grows. As a larger example, 1% fee on $500,00 is $5,000 per year. $5,000 per year at 10% interest compounded quarterly over 20 years is $355,122. Investment Calculator
If I were to hire a financial advisor, I would pay an hourly rate, if possible.
$500 per hour for 3 1-hr sessions is $1500. That is a good hourly rate and might be much less expensive over time.
Also, it might be a good idea to pay for a good accountant or tax advisor.
I tend to believe a good tax advisor can be very beneficial and cause less pain than completing the return yourself.
As example, I would rather invest in some low-cost funds that I recommended in (Investing - Lessons and Learnings | Mike Hofer) investing and spend some money on an accountant that knows more about the laws and can likely save me headaches.
#3 Spend on hobbies and entertainment and be mindful on the cost benefit ratio. Even better, it’s awesome if you can find a little “side hustle” that is your hobby.
As example, if you like sports or teaching, coach or teach a youth program where you might make a little money on the weekend and enjoy it. At minimum, it’s not spending too much money on the weekend and possibly being with your own child and other kids can be very enjoyable and not too costly.
Another example, is gardening. Generally, low cost and many find pleasure in seeing their plants grow and harvesting food. You can consider selling some of the produce at a local farmers market, giving away some of your produce, and of course, eating it yourself.
#4 Timeshares.
Don’t do them. Sorry, if you sell them and/or have one. I can think of very few people who I know that have said “I love my timeshare”.
In my experience, timeshares sound great when I am having the experience of that vacation. However, once I leave that vacation spot, I want to explore other places and I don’t what to be paying for something every year that is likely limiting to other experiences that I want.
#6 Never be late on paying a bill or invoice.
First, you should know your income and expenses and keep track of them. Therefore, your spending should be planned, so you should never be late paying a bill. Paying late will likely result in unneeded late fees, a possible transition to a higher interest rate, and even possibly affecting credit scores. To help you pay your bills on time consider things like:
Put on your calendar when bills are due.
Use automatic withdrawal or charge to a credit card that earns you points. However, also check to be sure your automatic withdrawals or charges are accurate and know where all your money is going.
Review all bank statements and credit card statements every month or even more frequently so you catch any errors or unknown charges early.
As example, many people have reported paying for unneeded subscriptions that keep automatically renewing.
Another example, is that sometimes the rates and charges creep up and up. If you don’t check these things, you could be paying way more than you initially intended.
Always know where your money is going whether out of your bank account or on your credit card.
#7 Plan Ahead – Early is good.
I believe a wise way to spend money is by having a plan and not letting in the moment feelings affect decisions too much. It’s like always going to the grocery store with a shopping list and not going grocery shopping when you are hungry.
My wife and I will go through our calendars every Sunday evening. This helps us plan the weeks, months, and even years ahead. We keep a list of travel that we would like to do, research the best affordable times, and try to book early and at places that still allow cancellations.
Normally you get the best deals when you:
Plan ahead.
Give yourself time.
Plus, if you are not in a rush to buy you can often negotiate.
Buy at the right time that still allows returns or cancellations.
Buy at the best quantities.
Example, there are certain “staple” items that we use regularly and quite often. We have a Executive Costco card…(insert the explanation of that card)
Earn your points and spend them wisely. Check out How to Win at Travel by Brian Kelly (founder of The Points Guy)
Hotels
Airlines
Credit Cards
Other ways to earn points and redeem them for free
The #1 Money Habit That Sets You Up for Financial Freedom
The Mel Robbins Podcast
In this episode, you’ll learn the best financial advice you’ll ever hear. It’s your guide to taking control of your money and learning the rules of how to make it, save it, and spend it better. Maybe you’re trying to pay down debt. Maybe you’re wondering how you’ll ever afford a home. Maybe you’re doing “okay,” but you don’t feel confident about the future, and you don’t know the best place to invest your money. Or maybe you want to know what really works to save money, make more money, invest money, and how to stop feeling like you’re behind. This episode will show you exactly what to do. Mel is joined by David Bach. David is one of the most trusted voices in personal finance for a reason: He teaches the rules of money in a way that makes you feel calm, capable, and in control. He’s a 10-time New York Times bestselling author behind The Automatic Millionaire, and he’s here to give you the simple money habits and tools that you can apply to your life today.
Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-mel-robbins-podcast/id1646101002?i=1000745475842
How to Win at Travel by Brian Kelly (founder of The Points Guy) is a New York Times best-seller that offers a comprehensive guide to maximizing credit card points, loyalty programs, and airline miles to travel luxury for less. Released in 2025, it covers booking, saving money on flights/hotels, and travel strategies for all experience levels.