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If you've ever justified a big purchase by calling it an “investment,” you're not alone. But personal finance expert Ramit Sethi says that mindset can blur the line between smart financial decisions and simple lifestyle upgrades.

In a recent post on X, Sethi pushed back on a seemingly common belief that expensive mattresses are somehow investments. “It's extremely interesting that a LOT of people believe expensive mattresses are ‘an investment’ (they're not — they're a luxury),” he wrote.

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Sethi pointed out an inconsistency in how people think about spending. While many are quick to justify a pricey mattress, they don't apply the same logic to other sleep-related items, like high-end sheets.

The conversation was sparked by a post describing $800 linen sheets as “the most comfortable sleep” with “zero sweat” and “superb texture,” but still not worth the cost for the person sharing the experience.

To Sethi, that contrast shows how people justify their spending in ways that don't always make sense.

When someone argued that an expensive mattress “genuinely helps your sleep” and that that “100% fits the definition of an investment,” Sethi disagreed. “An investment provides the potential of a financial return,” he said. “Otherwise we can start to apply the word ‘investment’ everywhere.”

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“That $400 lotion made my skin moisturized. It's an investment,” he illustrated the slippery slope with examples. “That $3,000-a-night hotel helped me sleep better, then I closed a deal. It's an investment.”

“Those are luxuries,” was Sethi’s conclusion. “It's fine to buy luxuries! But we need to be honest about what's what.”

The debate ties into a broader theme Sethi often talks about: how people think about money as their financial situation changes.

In another recent post, he encouraged people to regularly revisit their beliefs. “Every year, reevaluate your beliefs about money,” he wrote, adding that many people continue operating with habits formed when money was tight.

That can result in people stressing over small purchases even when their income and net worth have grown significantly.

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Sethi shared a personal example to explain the shift. “There is no meal at any restaurant that can materially affect my finances, so I give myself the freedom to order whatever I want,” he said. “For someone who couldn't afford appetizers as a kid, this is incredibly freeing.”

In the end, his point isn't really about what you buy, but how you think about it. Calling something an investment when it's actually a luxury might make you feel better about spending the money, but it doesn't change what it really is.

If you're thinking about building wealth, you're better off putting your money into actual investments like stocks, real estate, or businesses; things that have the potential to grow your money over time.

Sethi's point underscores how easy it is to mislabel spending as investing — but even when people do invest, many overlook a critical factor: taxes. Research suggests that how you manage taxes in retirement can significantly impact how much of your money you actually keep over time. Platforms like Finance Advisors aim to address this gap by connecting individuals with fiduciary advisors who specialize in tax-aware retirement planning, helping investors focus not just on returns, but on after-tax outcomes.

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Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Rad AI

Rad AI's award-winning artificial intelligence technology helps transform data chaos into actionable insights, enabling the creation of high-performing content with measurable ROI. Their Regulation A+ offering allows investors to participate at $0.91 per share with a minimum investment of $1,000, providing an opportunity to diversify portfolios into early-stage AI innovation. For investors seeking exposure to the rapidly growing AI and tech sector, Rad AI offers a chance to get in on the ground floor of a data-driven growth story.

Metals.io

Metals.io is a digital investment platform that gives individuals direct, 24/7 access to a range of precious, rare earth, and strategic metals—including gold and uranium—through blockchain-powered tokenization. By representing physical metals as tradable tokens, the platform removes many of the traditional barriers associated with commodities investing, such as high minimums, limited trading hours, and reliance on intermediaries. Investors can buy, sell, and manage their holdings within a single, unified dashboard, with features like fractional ownership, real-time visibility, and globally accessible trading designed to make metals investing more flexible and accessible.

Paladin

Paladin Power is addressing the growing demand for energy independence with a fire-safe energy storage system that doesn't rely on lithium-ion batteries. Instead, its ESS uses non-lithium, solid-state graphene battery technology designed for durability, safety, and long service life—positioning it as an alternative to fire-prone storage solutions that dominate today's market. Since launching in 2023, Paladin has generated $185 million in contracted revenue, achieved strong year-over-year growth, and secured a manufacturing agreement with NYSE-listed Jabil. With systems already deployed across residential and commercial properties and a $500B global electrification market opportunity ahead, Paladin offers investors exposure to decentralized energy infrastructure backed by real contracts, U.S.-based manufacturing, and scalable next-generation technology.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Masterworks

Masterworks enables investors to diversify into blue-chip art, an alternative asset class with historically low correlation to stocks and bonds. Through fractional ownership of museum-quality works by artists like Banksy, Basquiat, and Picasso, investors gain access without the high costs or complexities of owning art outright. With hundreds of offerings and strong historical exits on select works, Masterworks adds a scarce, globally traded asset to portfolios seeking long-term diversification.

Finance Advisors

Finance Advisors helps Americans approach retirement with greater clarity by connecting them to vetted, fiduciary financial advisors who specialize in tax-aware retirement planning. Rather than focusing on products or investment performance alone, the platform emphasizes strategies that account for after-tax income, withdrawal sequencing, and long-term tax efficiency—factors that can materially impact retirement outcomes. Free to use, Finance Advisors gives individuals with meaningful savings access to a level of planning sophistication historically reserved for high-net-worth households, helping reduce hidden tax risk and improve long-term financial confidence.

Public

Public is a multi-asset investing platform built for long-term investors who want more control, transparency, and innovation in how they grow wealth. Founded in 2019 as the first broker-dealer to offer commission-free, real-time fractional investing, Public now lets users invest in stocks, bonds, options, crypto, and more—all in one place. Its latest feature, Generated Assets, uses AI to turn a single idea into a fully customized, investable index that can be explained and backtested before committing capital. Combined with AI-powered research tools, clear explanations of market moves, and an uncapped 1% match for transferring an existing portfolio, Public positions itself as a modern platform designed to help serious investors make more informed decisions with context.

AdviserMatch

AdviserMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs. Instead of spending hours researching advisors on your own, the platform asks a few quick questions and matches you with professionals who can assist with areas like retirement planning, investment strategy, and overall financial guidance. Consultations are no-obligation, and services vary by advisor, giving investors a chance to explore whether professional advice could help improve their long-term financial plan.

EnergyX

EnergyX is a lithium extraction company focused on making production faster and more efficient with its LiTAS® technology, which can recover over 90% of lithium in just days instead of months. Backed by General Motors and a $5 million U.S. Department of Energy grant, the company controls extensive lithium acreage in Chile and the U.S. and is working to scale one of the largest lithium production facilities. Its goal is to help meet the rapidly growing global demand for lithium, a key resource for electric vehicles, consumer electronics, and large-scale energy storage.

Global Air Cylinder Wheels

GACW is an engineering startup developing the Air Suspension Wheel (ASW)—an airless mechanical wheel with built-in suspension designed to replace traditional rubber tires in heavy-duty applications. Initially targeting the $5 billion global mining tire market, the company says its technology can eliminate blowouts, reduce maintenance, and lower lifetime operating costs while also addressing environmental concerns tied to tire waste and microplastics. The patent-protected system is fully recyclable and designed to last the lifetime of the vehicle, with potential applications beyond mining. GACW plans to commercialize the technology in 2026 using a "Wheels as a Service" model that lets operators adopt the system without large upfront costs.

Bam Capital

BAM Capital offers accredited investors a way to diversify beyond public markets through institutional-grade multifamily real estate. With over $1.85 billion in completed transactions and guidance from Senior Economic Advisor Tony Landa, the firm targets income and long-term growth as supply tightens and renter demand remains strong—especially in Midwest markets. Its income-focused and growth-oriented funds provide exposure to real assets designed to be less tied to stock market volatility.

Atari

Atari is bringing its iconic legacy into the physical world with the launch of the first-ever Atari Hotel, a construction-ready gaming and entertainment destination in downtown Phoenix. The Atari Hotel Phoenix blends immersive gaming, live events, dining, and technology-driven experiences into a next-generation hospitality concept, backed by secured land, licensing, and development partners. Through a Regulation A+ offering, investors can own a direct stake in the land, building, and branded hotel starting at $500, with targeted returns including a 15% preferred return and a projected 5.8x multiple. As gaming and experiential travel continue to converge, this opportunity allows everyday investors to participate alongside developers in transforming a legendary brand into a real-world destination.

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