It’s easy to be tempted by extra money or a floating credit balance into spending that little bit extra on frivolous endeavors such as grabbing take out or buying something extravagantly expensive. But in most cases you should always be looking at that cash as a way to better your family and home, carefully taking control of your financial situation rather than letting the temptation get the better of you. Before you spend all your extra income on something you might not need, consider a few of the better alternatives.
1. Always make sure your bills are paid and up to date before you spend any of that extra cash on something else. Ensuring that your car insurance is going to be paid on time and the electricity isn’t in danger of being shut off is much more important than any of the special things you might want. A new computer might make your life a little easier, but is it a necessity? Worry about the necessities first.
2. If you’ve got a little bit of money left on your credit card, rather than using it for something of a luxury, use it for something important. If your car has something that needs fixed quite badly, spend that money on the repairs. If there’s something wrong with your house, take care of that before you think of buying frivolous items.
3. On the other hand, if you’ve got a little bit of spare cash but you don’t have money on your credit cards or you’re behind on your credit cards, consider paying some of that down. The longer that money stays on your card, the longer it will continue to draw in more interest, which will result in spending a lot more money in the long run. Don’t let your credit card get out of hand; make sure that you take care of it before it gets out of control and you dig yourself into a rut you can’t get out of.
4. If you have any bills such as a car payment or a house payment that can be paid early, it might be wise to put that extra cash toward an extra payment rather than spending it on something else. If you aren’t sure what else to spend the money on, it might be better just to put it toward the debt since it could potentially free up some of your money later on. Plus, you’ll need to make the payment anyway so whether you make it now or next month won’t really matter.
5. If you own your home, you could put that money toward remodeling or renovating a part of your house. Most renovations don’t cost too much, which means you should be able to invest in them with just a little bit of extra in your wallet, and the best part about them is that most of them can bring back quite a big investment later. If you’re going to spend money on something, it’s better than you spend it on something that will give you a return later on in life.
There are a lot of smart ways that you can use the extra cash you’ve got burning a hole in your pocket and you should definitely look into these before you spend it on something you might not need. Making smart decisions with your money now can fend off a headache later on in life and it will go a long way toward helping out your family.