Ways To Spend Disposable Income
Updated: Mar 19, 2020
The following is an article “Ways To Spend Disposable Income” by Marc Primo.
While most wealthy people who work hard for their money know how to manage their funds wisely, there are also those who literally do not know what to do with their riches.
While there is absolutely nothing wrong with spending what you rightfully earned on extravagant items, it also wouldn’t hurt to invest in non-material objects that could even enrich your life. The following are some ideas to get you going:
Peace of mind — OK, this might seem like an odd investment, but it is one that is often underestimated or overlooked. How many stories have your heard about somebody having his brand new car totalled the day after driving it out of the showroom? We tend to think that unfortunate events never happen to us and only to other people, but let’s face it, insurance is something that we are better off having and not needing than needing and not having. So, whatever the premium to insure your car, property, or even smartphone will cost you is exactly how much your peace of mind is worth.
Time is money — There’s an old saying that goes, “if money doesn’t grow on trees, then why do banks have so many branches?” Jokes aside, money doesn’t grow on clocks either, but the saying that time is money is 100 percent accurate. That said, buying time is another way to spend disposable income. Examples of this might be renting or buying property closer to your place of work or hiring someone to do chores such as mow the lawn or clean the house. Doing so will free up your time which you can spend on doing more of the things you love, and less of the things you don’t.
Quality over quantity — Yes, there are instances where quantity trumps quality, but not if you want to spend your disposable income wisely. Let’s say your weakness happens to be for shoes and you allot yourself a budget of $200 a month for a new pair. Are you better off buying four pairs of $50 shoes or just one pair that costs $200? Studies have shown that when in the pursuit of happiness and being able to sustain it, option 2 is the way to go. The rationale for that is it is human nature to lose interest when something becomes routine, whereas engaging in something less often helps to retain its appeal, thus keeping you happier longer.
Sharing is caring — While this might not come naturally to everybody, a study by the Chicago Booth School of Business revealed that a sample of people who received a large windfall and shared that money with their friends and loved ones reported increased happiness versus those who spent it only on themselves. Being happy is one thing, but doing something that makes other people happy is highly rewarding not just for them, but for the good samaritan too. So, rather than spend your disposable income just to make yourself happy, invest in a shared experience with somebody, anybody, and you’ll see the true beauty of paying it forward.