It is advisable that you should set aside an emergency fund that is at least equivalent to your three-month expenses. And you should have a couple of investments, passive investment at least. But where will you put your remaining money? Use it as a down payment for a car? Buy a new phone? These are just some of the material things that will give you a sense of fulfillment. I bet that feeling is not gonna last for more than a year or worse, more than a month.
If you invest your money on intangible things such as travel, sports and other things, that sense of fulfillment will stay for a long time. Or forever.
Invest your money on travel, not on car. Invest your money on trying out new food places, not on branded clothes. Invest your money on fitness or sports classes, not on a new pair of shoes. See how those experiences will change you.
Investing more on experience lets you know and discover your capabilities and your talents. It will lead you to a place where you’ve never been before. It will make you try something more that is outside of your comfort zone.
Experiencing things does not waste your time. What you experienced becomes timeless. You’ll get the chance to learn things and share them to others. You’ll be able to give other people better advice. When you grow old, you will become a master of it.
It will let you widen your connections to people. It will let you know that you’re not the only person who think about those crazy things. It will let you become a well-rounded person.
When will you start exploring your interests and developing your capabilities? When you become old? Time is scarce, not money. You can still buy expensive gadgets even when you’re in 30’s or 40’s but you may not be able to dive off a cliff or learn to play a guitar when you’re in that age.
Invest more on experience, not on material things.