One of the biggest dilemmas you will experience when finally earning your salary is what to do with it. Yes, there are some non-negotiables like your rent, food, and transportation, among other living expenses. But if you still have a bit of meat left in the bone, what should you do with it? Should you splurge on the things you want to buy now or save it for the future? Here, we explore some of the ways to spend your money wisely and the merits they have over the others:
Splurge to Reward Your Efforts
Perhaps the least surprising way to spend your money is by rewarding yourself after weeks of hard work. It’s not wrong to treat yourself to a good meal or two. You’ve been eating at the same office cafeteria for several days straight, so it’s not really surprising if you go ahead and eat somewhere fancy, or at least some place that offers a variety of meals to choose from. You’ve worked hard, and you deserve to taste the fruits of your labor—literally.
It’s also great to buy new clothes once in a while, especially if you’re in your office attire for four or five days straight each week. Treat yourself to that new sneaker from a well-known brand, or buy that new top that’s a big hit to people your age. If you can afford it, go and dress yourself however you want, especially if that will motivate you to work harder to enjoy better things in the near future.
Save Everything for the Rainy Days
It’s quite the opposite of splurging to reward yourself, but saving whatever amount you can from your salary also makes sense, especially if you aim to retire early. There are those who look ahead to a life free from work by the time they’re in their forties. They’ll do whatever they can to save now while they’re young. In principle, this is really a great idea since you’ll still be able to enjoy life while you’re relatively younger and healthier.
Most people retire by the time they’re 60, so they only have a few good years to enjoy their “freedom.” But depriving yourself during your 20s and 30s can be a bit demanding and requires the utmost patience and focus, especially if you see your peers enjoying their time spending what they’ve earned.
Invest and Earn on the Side
While this is not the same as saving your money in the bank, investing your earnings can help you be better off in the future. You can invest in stocks and play around with your money, buying and trading in the stock market. This may require a bit of financial knowledge, but it can really pay off if you know what to buy and when to sell. You can also start your own business from a bit of money saved.
If you want to start a business but don’t know what exactly you want to venture in, you should consider getting a franchise. Here, you’ll have an already established business, which helps with your ROI. Even a small search of “how to grow my franchise” would result in great tips that you can use for your business. Again, this requires you to invest a good chunk of your savings, so it’s also a risk that you should be willing to take.
Whatever you decide to do with your money, make sure that you’ll reap the benefits in the end. You can splurge on things to reward yourself after working hard for so long or just save everything to retire early. You can even start your own business, get a franchise, and earn more on the side.