Learn effective strategies for managing personal finances with 'How to Spend Like a Future Rich Person.' This guide emphasizes essential spending, saving for future goals, and cutting unnecessary expenses. It provides actionable steps to help individuals take control of their financial situation without guilt or confusion. Ideal for anyone looking to improve their financial literacy and make smarter spending decisions, this resource includes practical tips and pro advice for budgeting and investing. Discover how to prioritize your financial goals and negotiate better rates on bills.

Key Points

  • Explains how to cover essential expenses like rent, groceries, and insurance.
  • Offers strategies for saving money by paying yourself first and automating savings.
  • Includes tips for managing discretionary spending through a 'mad money' fund.
  • Discusses the importance of monthly financial reviews to track progress and adjust goals.
Alidia Li
Author:Haley
4 pages
Language:English
Type:Guide
Accounting
Alidia Li
Author:Haley
4 pages
Language:English
Type:Guide
Accounting
202
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mrsdowjones.com
@mrsdowjones
Mrs. Dow Jones
How to Spend
Like a Future
Rich Person
GOAL
To help you take control of your spending without guilt, confusion, or overwhelm. You’ll know exactly where your
money goes, what it’s doing for you, and how to keep it working.
Step 1: Cover Your Essentials
These are your non-negotiables -the expenses that keep life running.
Examples:
Rent or mortgage
Groceries & household basics
Transportation
Insurance & minimum debt payments
These are your keep-the-lights-on numbers. Knowing them = freedom. Once you know what’s fixed, you can see
what’s flexible.
Pro Tip: Once you’ve listed your essentials, figure out how much of your income they actually take up. Copy,
paste, and personalize this prompt into AI Assistant: "Here are my monthly essential expenses: [insert your list
with each expense's amount]. Here is my monthly take-home pay: [insert amount]. How much of my income do
these take up as a percentage?"
Step 2: Pay Yourself First
Before you spend on anything else, pay Future You.
Move money toward your goals:
Emergency Fund
Debt Payoff
Investing Contributions
Automate these transfers so they happen right when your paycheck hits. You’ll never “find” the money later -it’ll
already be working.
Pro Tip: Make a list of your savings goals. Then easily see how close you are to your next milestone by copying,
pasting, and personalizing this prompt into AI Assistant: "I want to prioritize these goals: [insert your savings
goals and amounts needed]. If I set aside [insert amount] every payday, how long will it take to accomplish
everything?"
Disclaimer: The views, examples, and opinions expressed in this work are those of Mrs. Dow Jones and do not necessarily reflect the views of Adobe.
mrsdowjones.com
How to Spend Like a Future Rich Person
@mrsdowjones
Mrs. Dow Jones
Step 3: Keep Your Mad Money
This is your fun fund -the stuff that keeps life rich in more ways than one. Dinner with friends, pilates, skincare,
that matcha moment. Set a monthly amount (10–20 % of take-home pay). Spend it guilt-free -just stay
intentional.
Pro Tip: Make a list of your fun expenses for the month. Then copy, paste, and personalize this prompt into AI
Assistant: "Here are my fun expenses for the month: [insert your list with amounts]. Summarize which categories
I overspent on." You’ll spot patterns (like $400 in delivery, hi) and course-correct fast.
Step 4: Cut the Waste
Future Rich People don’t cancel joy -they cancel waste.
Look for:
Subscriptions you forgot about
Fees you shouldn’t be paying
Impulse buys that don’t actually add value
Every $20 saved here is $20 working toward your next goal.
Pro Tip: Get some help analyzing where your money goes. Copy, paste, and personalize this prompt: "Here are
my monthly expenses: [insert your list with amounts]. Find any recurring charges or subscriptions I could cancel."
It’ll surface repeat charges automatically -like a built-in financial detective.
Step 5: Negotiate Like a Rich Person
You can negotiate almost everything -from internet and insurance to gym memberships and credit-card rates.
A ten-minute call can save you hundreds.
If you shave $30 off your phone bill and invest it monthly, that’s roughly $5,700 after 10 years at 10 %.
Pro Tip: Get some help lowering your bills. Copy, paste, and personalize this prompt into AI Assistant: “Write me
a polite but firm script to ask my [insert company] for a lower rate.” You'll instantly get a ready-to-use call script
with tone and phrasing included.
Disclaimer: The views, examples, and opinions expressed in this work are those of Mrs. Dow Jones and do not necessarily reflect the views of Adobe.
mrsdowjones.com
@mrsdowjones
Mrs. Dow Jones
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FAQs

What are essential expenses and why are they important?
Essential expenses are the non-negotiable costs necessary for daily living, such as rent, groceries, and transportation. Understanding these expenses is crucial because they represent the fixed costs that must be covered before any discretionary spending. By identifying these essentials, individuals can better manage their budgets and allocate funds towards savings and investments. Knowing your essential expenses allows for more informed financial decisions and helps in achieving long-term financial goals.
How can I automate my savings effectively?
Automating savings involves setting up automatic transfers from your checking account to savings or investment accounts as soon as you receive your paycheck. This ensures that you prioritize saving for future goals, such as an emergency fund or retirement, without the temptation to spend that money first. By automating these transfers, you create a 'pay yourself first' mentality, making it easier to build wealth over time. Many banks offer features that allow you to set up these transfers easily, making the process seamless.
What is 'mad money' and how should I allocate it?
'Mad money' refers to the portion of your budget set aside for discretionary spending, such as dining out, entertainment, or hobbies. It's recommended to allocate about 10-20% of your take-home pay to this fund, allowing you to enjoy life without guilt. The key is to spend this money intentionally, ensuring it brings you joy and satisfaction. By tracking your mad money expenses, you can identify patterns and adjust your budget accordingly, ensuring that your spending aligns with your values and goals.
What steps can I take to cut wasteful spending?
Cutting wasteful spending involves reviewing your monthly expenses to identify subscriptions, fees, or impulse purchases that do not add value to your life. Start by listing all recurring charges and evaluating their necessity. Look for subscriptions you may have forgotten about or services that you no longer use. By eliminating these unnecessary expenses, you can redirect those funds towards savings or investments, ultimately helping you reach your financial goals faster.
How can I negotiate better rates on bills?
Negotiating better rates on bills can lead to significant savings over time. Start by researching competitors' rates for services like internet, insurance, or phone plans. Prepare a script that outlines your request for a lower rate, emphasizing your loyalty as a customer. A simple phone call can often result in discounts or promotions that are not advertised. By regularly negotiating your bills, you can save money that can be redirected towards your financial goals.

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