When making an important buying decision, we are often taught to look for the best deal possible in order to save a few dollars. Especially if we tend to be more frugal, we forgo quality for the less expensive option. While it’s important to pinch pennies in some instances, other situations require us to invest more financial resources.
Here are the 5 things that are worth spending extra money on in the new year.
Things that earn you more money
Are you required to have the latest software installed on your computer for your job? Do you need a new business suit to wear when taking a potential client out to dinner? If it’s important to your livelihood, then it’s okay to splurge on the items you need to remain successful.
Services that save time
If you spend more time grocery shopping or cleaning your house than you do spending quality time with family or friends, then it may be useful to allocate some extra money for a grocery delivery service or a cleaning crew. One of the best things you can do with your money is to use it to free up your time.
An education savings plan
According to the Globe and Mail, the average Canadian graduate owes roughly $26,000 to $28,000 in student loan repayment. That’s why it’s important to begin saving for higher education as early as possible. Case in point, contributing to an RESP through providers like Children’s Education Funds Inc. (CEFI) can put your extra funds to good use. Not only can your investment grow over time, but your student can also apply the funds to anything related to school expenses: tuition, books, housing, transportation, and more.
A health club membership
If it improves your health and makes you feel energized at the same time, then a membership to a gym or fitness club is worth the extra spending money. In 2020, take some money to invest in yourself and your overall well-being.
An item that gives you pleasure
If you love photography but lack the proper equipment, why not invest in a new camera that will help you take better pictures? Perhaps you travel several times throughout the year but your luggage is beaten up from endless trips through baggage claim. In this case, it’s okay to splurge on high-quality luggage. Allow yourself to splurge on something that gives you pleasure once in a while.
Remember, when it comes to financial security, you shouldn’t splurge if you have outstanding debt or are already spending more than you have budgeted; however, it’s fine to spoil yourself here and there when it is warranted.