Rules on how to spend money

This post is for people who are thrifty, and on their way of building wealth.

I also write this for me, because I often don't spend money where I should.

We are not talking about time vs. money here

There are many other rules for spending out there, which we don't cover here.

Things like "Outsource everything below your own hourly rate". While these make sense, this is not about that.

Because like many of you, I don't work hourly anymore.

Then this post is for you.

Prerequisite is that you somehow know your net worth.

Once you have that, you create these ranges of spending:

Anything you do once per day. Just spend it without thinking.

1% of 1% is like net worth * 0.0001

Example:

Net worth: 900,000 - just below a million.
1% of 1% = 90 USD.
Below that: just spend it. It can be once or multiple times per day. Don't think about it.
Need a new charger for a laptop? Don't think, just get it.
Meal at a restaurant: 30 USD or 40 USD? Doesn't matter. Just get what you like.

Let's assume you max all these out:

Calculate against the annual return.