Hey Simplifiers,

Last week someone told me they were "investing in themselves" by buying a $400 skincare routine.

I didn't say anything, because I'm not a monster.

But the thing is, that's not an investment. That's a purchase.

And yes, the difference actually matters. Not because I'm being pedantic, but because misusing money language makes it harder to build actual wealth.

When everything is an "investment," nothing is. When all spending is "treating yourself," you lose the ability to distinguish between what grows your net worth and what just... costs money.

So let's clean up some of the most commonly misused money terms. Not to shame anyone, but to give you back the clarity these words are supposed to provide.

What people say:
"I'm investing in a new wardrobe for work."
"Quality furniture is an investment."

What it actually means:
An investment is something you buy with the expectation it will generate future income or appreciate in value.

Stocks? Investment.
Real estate you rent out? Investment.
A $2,000 couch? A purchase. Maybe a good one. Still not an investment.

Why it matters:
When you call every purchase an "investment," you're giving yourself permission to overspend by reframing consumption as wealth-building. It's not. And pretending it is keeps you broke.

What people say:
"I'm building passive income streams!"
(Usually means: starting a side hustle that requires 20 hours/week)

What it actually means:
Income that requires minimal ongoing effort after the initial setup. Think: dividends, rental income from a managed property, royalties.

The reality:
Most "passive income" requires massive active effort upfront or ongoing management. That's not passive—that's just... income.

Selling digital products? That's a business.
Affiliate marketing? That's sales work.
Nothing wrong with either, but let's not pretend it's hands-off.

What people say:
"I can't afford to save right now."
"I can't afford healthy food."

What it actually means:
"Can't afford" should mean: this expense exceeds my available resources.

But we often use it to mean: "I'm choosing to prioritize other things."

Why the distinction matters:
When you say "I can't afford it" about everything, you lose agency. Sometimes you genuinely can't. Sometimes you're choosing not to. Both are valid—but only one is a decision you control.

Reframing "can't afford" as "choosing not to spend on" puts the power back in your hands.

What people say:
"I saved $50 by buying this on sale!"

What it actually means:
Saving money means keeping money you didn't spend. If you spent $150 on something that was originally $200, you didn't save $50. You spent $150.

The test:
If the money isn't in your account afterward, you didn't save it.

What people say:
"I'm so broke." (sent from an iPhone, while sitting in a paid apartment)

What it actually means:
Broke means having no money and no assets. Like, actually nothing.

Why this one's tricky:
Most people mean "cash-poor" or "tight this month"—which is real and stressful! But it's not the same as broke.

Using "broke" casually can make it harder to recognize actual financial crisis when it's happening—to you or someone else.

Go back through your last five money conversations—texts, journal entries, thoughts in your head.

How many times did you use one of these words incorrectly?

Not to beat yourself up. Just to notice.

Because the language you use shapes how you see your financial reality. And if the words are wrong, the decisions that follow probably are too.

With care,
C
Founder of The Simple Adult 🩶

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