Would you agree that these are some of the best ways to spend your money? Let us know if you’ve got more to add to this list!
We’re told time and again to save our money and to try to control our spending, all for the sake of achieving financial freedom at some point. But spending money is a necessary part of life; there are a lot of places where you can put your money to good use. You can even save money by first spending it. So how about a list of things worthy of your dollars?
Reduce your debt by paying off your credit cards and loans.
It’s impossible to attain financial independence when you owe creditors. Paying interest on debts can cost you quite a bit of money over time. So if you’ve got the money, pay down your debts as quickly as you can to cut down on paying those interest charges that drain your savings. If you have a tough time doing this on your own, see a debt counselor, work to consolidate your loans and work out a debt repayment plan. Here’s more information on how to consolidate debt.
Spend money to save or make money.
Think about ordering a newspaper because it’ll pay for itself when you use it to find and use local coupons. Buy in bulk at Costco — you’ll be buying more items for less cost per item. Or how about picking up the Entertainment Book for $25? Cutting coupons can save you hundreds or even thousands of dollars on everything from home repairs and dinner at restaurants, to clothing. Or how about looking to get a credit card that rewards you for your spending? Also, if you invest in your business or pay for the services of a broker or financial planner, you may think of this as spending money to potentially earn or make more money down the road.
Repair, renovate and maintain the things you already own.
Does your refrigerator talk to you when you open the door? Do you have to slam your washing machine lid to make it go into the next cycle? Is your car making strange noises when you start it? Make sure to repair, renovate and renew your appliances and vehicles. These big ticket items can be costly to replace: you can save significantly and extend the life of these major purchases with proper maintenance. A home warranty insurance (on certain, select items) is one way to ensure that you keep up with ongoing repairs on your appliances.
Invest in yourself by learning new skills.
Paying for education is money well spent. Learn a new skill, expand your horizons or get that certification so you can move up from your current position. Developing your mind and enhancing your skills will help you earn more money. Education is a solid investment in your future. You can even go to school online so you can keep your day job and earn while you learn.
Take care of your health.
Without your good health, life becomes less enjoyable. Purchasing a membership to the fitness club, buying organic food, getting your teeth fixed and investing in health insurance are wise ways to spend your money. Eating healthy means fewer medical expenses and less lost time from work, which equals serious savings in the long run.
Insurance is your Plan B. It gives you the assurance that you are financially covered during difficult circumstances. Besides having health insurance, make sure you have automobile, homeowner’s, property and life insurance to protect your most valuable assets and your loved ones. Without insurance, a molehill can turn into a mountain — a crisis can quickly turn into a catastrophe. Here’s a rundown of the insurance policies we should all own (and those to avoid).
Invest in your appearance.
Classic clothing, a good haircut and practical shoes are solid investments. Unfortunately, we live in a society where people’s impressions of us are often determined by our outward appearance. How you look can influence your success as an individual. By simply following good hygiene, wearing neat clothes and practicing good manners, we’re more likely to score higher points at work and in life in general.
Beautify your home.
Money invested in your home increases your home’s value and improves the quality of your everyday life. When you spend money on your home, it is a solid investment in your largest asset. You also create a sanctuary you can enjoy so you feel rejuvenated to face the world and your daily responsibilities.
Keep up with the times and modernize your surroundings.
If you’re going to spend on material items, one category you may want to consider paying for is technology. If you need these items for your business or to help manage your daily living, then spending on functional electronics is a wise move. If you work for a company that can provide these items to you, then all the better! But if you’re still using rabbit ears and your cell phone resembles a block, it may be worth upgrading them so that you can function at maximum efficiency.
Outsource to save yourself time.
As they say — time is money! In today’s complicated, fast-paced world it’s impossible to do everything ourselves. Your time may be worth much more when focused on certain activities. If so, then try outsourcing some of your daily tasks to free up your time for more important activities. You may want to consider hiring a cleaning lady or a gardener so you can work overtime or spend more time with your family. Outsourcing can also save you money when it comes to making repairs. Would you try to do your own plumbing or electrical work even if you don’t have the qualifications? Not everything should be a DIY project unless of course, the project is along your area of expertise. Hire a plumber or electrician so the job is done right and you can return to your regular everyday business.
Spend on high priority items.
It’s not a good thing to spend indiscriminately but when you prioritize on the things you care about the most, you should have room in your budget for the occasional splurge and for the enjoyment of those things that matter to you.
Pursue a hobby.
Having a hobby or favorite activity helps you to relax and get rid of stress. Hobbies also help you to be well-rounded and happier. How about picking out an affordable hobby or activity you can maintain on your current budget? Sometimes you can even change the scope of your favorite hobby to make it more affordable. For example, if you like golfing but cannot afford the fees at the putting green, you can set up your own portable putting green at home so you can practice your swing anytime, without the extra costs. Also, you can always pick out a hobby that can turn into a business — that would be the perfect hobby!
Invest in your children.
It’s a great idea to spend on our kids — but I’m not talking about material things here. Rather, money is well spent when you invest in your children. Save for their college education and see if you can get your child the best education you can afford. Expose them to cultural experiences such as art galleries, museums, arboretums and zoos. Have wonderful family experiences and a positive attitude about education so your children can truly understand the value of money and a good life.
Invest in the environment: go green.
Some of the eco-friendly items available out there can go for a premium. There are green homes that sell for higher than their non-green counterparts. But over the long run, you could be saving money by buying newer, more energy efficient items. Case in point: Energy Star Appliances.
Purchasing Energy Star appliances and low watt bulbs can save you money on your utility bill, and it can be significant. You’re also doing good things for the environment when you save electricity. Although certain Energy Star appliances may cost a little more, you will realize immediate savings once you receive your electric bill.
How else can we spend wisely?