Good Morning DINKS. Very often people tell us that we have to spend money to make money. I am not sure that this is always true, but I do agree that this is true sometimes, depending on the situation. It is definitely not a good idea to spend money (especially money that we don’t have) in the hopes of maybe making money in the future. However, very often is the case that we do have to spend money now in order to save money in the future.
Think about your education. Would you be working in your current career if you didn’t have a diploma? Very often a good education is worth the cost because the career opportunities and potential earning salary are greater if we have a diploma. An education does not necessarily mean attending College or University; a good education can definitely come from Trade School. I know that I was personally offered many jobs based on my education and not necessarily on my experience. Working at a job that offers a potential higher income also allows us to save money with our extra disposable monthly income. Therefore we can say that spending money on a higher education helps us to both make money as well as save money.
Many people feel that buying a home is a good investment. Eventually over time the value of real estate should increase, and therefore our home becomes a long term investment. Many people feel that renting is a waste of money because we don’t get anything in return. I personally love the hassle free (and carefree) lifestyle of a renter. However, there are definitely some aspects of sharing my personal space with strangers that I really hate.
The concept of spending money to save money is true when we are talking about shopping for items that we continuously use on a regular basis such as household items. The concept of buying in bulk definitely makes us spend money now but it also helps us to save money in the future. When we buy in bulk the unit price of each item is lower than if we decided to buy the items individually whenever we need them. I am definitely not suggesting that we become Hoarders. I am simply saying that buying 2 or 3 deodorants at a time can be financially beneficial if they are on sale.
We can save money on anything if we plan ahead. This is true for almost everything from toilet paper to groceries. Spending some extra money now while buying our items can save us money later. If we procrastinate we can lose out on a good deal, a sale, or a promotion and therefore we end up paying more than we need to for our items.
Planning ahead can also help us make money in the future. If we have a personal or a financial goal we can make a plan to work towards that goal. Our goal may be to go back to school, it may be to relocate to a bigger city with more career opportunities, or it may be to buy a house. Regardless of whatever personal goals we have, achieving any goal requires planning.
Why are you spending money?
Photo by The Hills Are Alive
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
No Comments yet!