Welcome to reThinkable - my Sunday newsletter where I share actionable money tips, strategies, and resources to help you make smarter money moves.

Read time: 3.5 minutes

Stop saving money, friend.

I know that sounds backwards. Most financial advice tells you to save more and spend less, and honestly... that advice isn't wrong. Just 2 weeks ago we talked about lifestyle inflation and why your savings need to keep up with your income.

But sometimes saving less might be the key to financial freedom.

When I was working on Wall Street, I had this moment that changed how I thought about money. I was standing in the grocery store, having a full anxiety spiral over a $7 pint of Ben & Jerry's Rocky Road ice cream.

Seriously. I was earning a great salary and stressing over $7 ice cream.

At the time, I thought I was being smart. I wanted to save every possible dollar so I could quit my toxic job. But I was always stressed. And as months passed, I didn't feel any closer to my savings goal.

I was spending so much mental energy trying to save $7 that I wasn't focusing on the moves that could actually get me to financial freedom faster.

That's when I realized: I was saving harder, not smarter. Once I switched from obsessing over every penny to focusing on the bigger picture, everything changed. 

Here’s why saving less might actually move you forward.

The Ant Mentality

Have you ever heard of the “The Ant & The Grasshopper” story?

The ant spends all summer storing food. The grasshopper plays and laughs at the ant. Then winter comes and the ant is cozy inside, drinking soup while the grasshopper starves and freezes.

If you’re like me and you grew up without much money, it’s easy to take the ant’s mindset too far. You are always working hard and saving harder. Every dollar feels untouchable, because in your mind, you’ll need it for “winter.”

The ant’s mindset has a name: Scarcity Mentality — the belief that what you have will eventually run out, so you cling to every resource just to feel safe. 

The problem with scarcity is that it makes you think the only path to financial freedom is hoarding your money.

For example, if you’re hung up on saving $200 a month, you might stay stuck in a job you hate just to make that goal. You decline an offer to move to a different company with better long term potential because you would take a small pay cut. You cling onto the $200. In the end, that “safe” choice costs you more than it saves in the long run.

And even if you don’t personally struggle with a Scarcity Mentality, most personal finance advice tries to hammer it into your brain with ideas like: “the reason you’re broke is because you buy $7 coffee.”

While I agree saving is the foundation of every money plan, it’s not the entire plan. To actually move forward, you need to:

• Increase your income

• Cut the expenses that actually matter instead of stressing over small ones

• Open yourself to opportunities that pay off in the long run

So how do you balance saving enough to be cozy in winter while still moving forward?

Tangible vs Intangible

The biggest mindset shift for me was realizing I needed to invest some of my savings. Not just in index funds or a 401(k) — but in myself.

Because there are 2 types of benefits:

Tangible benefits are what you can measure right away. Like saving $200 and seeing your account balance go up.

Intangible benefits are the ones that take longer to show up, but often matter more. Like spending that $200 on a class that leads to a higher-paying job 6 months down the line.

For years, I completely ignored intangible benefits because I didn't know any better. I'd skip after-work happy hours to save $25, not realizing that networking with colleagues could open doors down the line. I stayed in a job that paid well but drained every ounce of my time and energy - which meant I had zero room to explore anything else.

That’s why I have an Opportunity Fund. Instead of putting every extra dollar into savings, I carved out a small budget for things that invested in my future: education, networking events, even a faster computer to do my work better.

Here's my simple test when I'm about to spend money on something: Will this help me earn or grow more in the future? If yes, that’s the Opportunity Fund.

Saving is essential, but it’s not everything. If you cling too hard to the tangible benefits of saving now, you miss the intangible benefits that unlock growth later.

To track your Opportunity Fund, simply add a new line under the “Compound Bucket” column in my Money Map.

PS: If you don’t have my Money Map yet, reply to this email “Money Map Please” and I’ll send it to your for free. It comes with a video tutorial showing you how to use it too!

To making smarter money moves,

— Vincent Chan

Cool things from this week

• Smart Money Tip of the Week: ​Why who you choose as your life partner​ is the most important financial decision.

• No, it’s not just you. Groceries and gas did get more expensive​.

• So I’ve decided to turn the extra room in my basement into a home gym! Gyms around here cost anywhere from $60 to $150 per month so I figured my home gym would pay for itself after 1-2 years. Plus, I won’t have any more weather-related excuses to skip the gym, which is equally great and not-so-great for me ;). Any tips or advice for building a home gym?

Vincent Chan

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