It is not every day that you choose to spend money over saving it but there are instances when it makes more sense. From the beginning, you might have been taught to save money rather than spending it and it is actually a sensible goal. It is important that you save money for various areas in your life such as retirement and even for emergencies.
Saving money for retirement is one of the top financial goals you need to have on your list. Your golden years are a fact of life and not just one of the possibilities. It is a stage in your life where enjoying it depends on how well you prepared for it. The same preparation is crucial in making sure you get to address the unforeseen situations with your emergency fund.
However, you also need to spend money as you go along because this is just part of life. Starting with the basic needs that you require, you will spend what you earn. This covers food, clothing, housing, and even education. It is difficult to go through life without having to spend on anything. The question now is where to spend your money on.
The quick answer is on your basic needs but there are some areas in your life where you need to spend on. These are expenses which can improve your quality of life and make your days better. Here are some of the expenses where you might want to put money on.
Spend money if it means you can improve your health
Your health is one of the most important areas in your life but sadly, this is one of the first things sacrificed when you are in pursuit of money. In your desire to earn more at the end of the month, you put in a lot of overtime work and you lose sleep over it. It is also possible that you eat comfort food just to keep you awake.
If you take on a side hustle, you could be doing the same thing where your sleep and food intake are compromised. Exercise might be totally out of the equation since all the extra time you have goes to sleeping and resting your body. However, it is important that you put your health in focus especially when you are starting to push yourself to the limit.
It might cost more but taking in healthier options for your food consumption will have benefits in the long run. It is also important that you put in some time to exercise even for a few minutes a day. It can be brisk walking or even going to the gym a few days a week. This can keep you fit and healthy and you get to improve your quality of life.
Putting money on insurance
It is also a good idea to spend money on insurance products even though at the back of your mind, it is the last thing you want to find a use for. If you get insurance, you are actually buying some form of peace of mind as you keep your worries at bay. In the event of emergencies, you have something you can use to help you get through a specific situation in your life.
It can be medical in nature, damage to your assets such as your house or car, or even disability insurance to help you cover for income loss. The US Department of Labor shares that this provides individuals who are injured on the job while employed some compensation. This is important especially if you are a one-income household.
It might seem like an unnecessary expense at the moment because you cannot find the need for it. This is of course if the time comes that you do need it. It is one of those things in life where it is better to have it and not need it than need it and not have it. If you added fire in your property insurance and it does happen, you will be glad you have it so you can start rebuilding your asset.
Buy what you saved up for
There will be times when you have to save money to spend money, especially for big-ticket items. However, there are people who have this habit of holding off on the purchase because they are dealing with a huge amount of money. Time goes by and they are still holding on to the money which is losing value over-inflation all while missing out on what they saved up for in the first place.
One example is setting money aside for a downpayment on a house you want to buy. You saved up for a few years and when you finally have the money to put about 20%, you start to second guess it. It is one thing to be cautious and make sure you are making the correct decision and another thing to completely stall.
If you prolong the purchase, someone might get the house you want to buy or worse, slowly find an excuse to use the money for some purchases. If you saved up for that house, use the money to put down payment. It is a good idea to put more than 20% so you do not have to pay for Private Mortgage Insurance or PMI. Consumer Finances shares that the PMI protects the lender and not you so it is an added expense in your house payment.
Spend money for professional help
You might be reluctant and not spend money on professional help but these are necessities of life. If you get sick, you pay money to go see a doctor for professional help. They look at your symptoms, order some tests, and tells you how to get your body to get better. The same with contractors or mechanics when it comes to house or car problems.
When you are having a hard time getting your finances in order, there are also finance professionals who can help you get things together. What they normally do is look at your current financial situation and what your goals are. They then help you understand some of your options and gives you pieces of financial advice.
Much like how you can use debt consolidation to help you manage multiple payments. It can give you the chance to focus on fewer debt accounts and even help you lower what you pay in a month. Of course, this is just one of the many debt repayment programs you can look into and a professional company can help you understand and weigh your options.
Purchasing high-quality products
You should not feel guilty when you spend money on higher quality products because you get to save money in the long run. However, be sure that you are buying based on quality and not on perceived consumer value. Remember that not just because a product is higher priced it means that the quality is better than others.
It is true that the higher the quality, the more expensive it becomes but this is not always the case. You need to conduct due diligence and research about the products you purchase. Ask around about it and talk to people who have used the item. You can also look at online reviews to gauge and understand if you are making a good choice
At the end of the day, it all boils down to doing everything in moderation when you spend money. There are instances when you have to spend but it does not mean that you have to go all out and paint the town red.