Why You Should Waste Your Money01.20.12
Time and time again financial experts warn wasting money can be detrimental to our personal finances. After all, the way we spend, save, and invest determines our fiscal future. But despite the typical advice, there is a time to WASTE your money. Cotton Candy contributor and author of Moneylicious: A Financial Clue for Generation Y Ornella Grosz looks at five spending habits, often viewed as wasteful, that may actually help you get ahead.
No. 1 Renting.
Too often we’ve heard “renting is like throwing money out the window.” And in certain situations that is true. But everything boils down to affordability. Why buy a home if you will not be able to afford repairing a leaky roof, replace an A/C unit, property taxes, utilities, and other hidden costs sure to tap into a homeowner’s budget. Before buying a home, determine what might happen if you need to move two to three years later? Assess what will happen if you cannot sell a home quickly. Decide whether you can take on the responsibility of becoming a landlord if you cannot sell your home. Renting gives you sense of freedom. If you want to move to another location, don’t want to be concerned about selling your home or be preoccupied with finding tenants, consider renting. Many responsibilities are shifted to the landlord when you rent, such as fixing appliances or completing home repair.
No. 2 Impromptu Relaxation.
Any chance that you are overdue for a relaxing, and revitalizing vacation? Rekindle your creative juices, and stimulate your mind by pulling away from the daily stress through a relaxation trip. As modern women, we often are overworked with very little time for ourselves. Spend the cash to escape to a tranquil environment. Dine at one of the finest restaurants, spend a day in a spa salon, or find out what events are coming up in your hometown.
No. 3 Eating out.
It’s a relief and a convenience to order your food, and let someone else do the cooking. For most people, eating at home requires more planning and effort than you would like to have scheduled in your busy life. After fighting rush hour traffic, it’s a delight to not have to spend another 40 minutes preparing your meal.
No. 4 Spruce up your appearance.
Appearances do matter. Spend money on your personal style. Without the right look, the job interview, the date, the networking event, the initial business meeting, the customer, the party, and the meeting of your in-laws can end before they begin. First impressions are crucial. You don’t need to buy clothes that are beyond your budget, but if you have an outdated wardrobe, then it’s worth the money – that includes splurging on your hairstyle.
No. 5 Splurge on an upgrade.
Upgrade an item you regularly use. If you are a movie buff who loves to watch movies on Friday and Saturday nights with family and friends, upgrading to a 60 HDTV makes sense. If you spend ample amount of time participating in a specific activity, such as biking, skiing, painting, etc., upgrading to the proper equipment makes sense. Don’t upgrade on items you rarely use.