Spending money is easy. There is always a fabulous new pair of strappy heels, a $250 tasting menu, or a killer cocktail dress calling your name. On the other hand, saving and budgeting your money, seems to be a bit more difficult. To start winning in the ongoing battle with your bank account balance, you have to first take a good hard look at what things you are spending your money on. In the hopes of helping a sister (or brother) out, here is a list of things that you should be spending your money on.
Pay Off Debts
The #1 smart thing that you should be spending your money on is something that you have already spent money on–aka the hairy-scary debt monster! We know that your monthly student loan bill can seem super daunting, but only paying the minimum is going to drag out the process far longer than you have to. Budget out your monthly income to factor in exactly how much you can pay towards your student loans and/or credit card bills to reduce the length of the loan and the amount you pay in interest.
Invest In Yourself
Spending money to better yourself, personally and professionally, is always a smart idea. Enroll in a program to learn a new business skill. Sign up for a gym membership or fitness class. Purchase organic foods and homeopathic supplements. Register for a weekend health retreat. Whatever it is, make sure that it is something that feeds your mind, your body, or your soul and helps you to continue to grow as an individual.
Invest For The Future
We feel you. Investing is daunting. With all the different investment options and confusing jargon, you may feel inclined to bury your head in the sand and do nothing rather than risking doing the wrong thing. But investing does not have to be intimidating and actually can be fun once you gain the confidence to do so. Some smart (and safe) investments to make in your 20’s are to invest in a Roth IRA and increase your monthly 401k contributions (lots of companies will match what you put in). Don’t shy away from speaking with your employer or HR department to see what investment options you have. If you happen to be your own employer and HR department, seek advice from your local banker. It is their job to help you understand how to best invest for your future.
Where is the fun in being smart with your money is you never get to enjoy any of that brilliance?! Set saving and investment goals for yourself with a specific reward in mind for when you reach them. Then reward yourself for being so savvy with your hard earned cash and buy the shoes!