I have a to-do list as long as my arm.  Projects to do on the house.  Things I want to do for fun.  Courses I want to take to better myself.  Things I want to do to create happy memories for my family.  They all cost money.  

With funds, let’s say, finite and with aspirations high, where should you be spending your hard-earned?

1. Put a value on it: Know what’s important to you.  What’s going to get you closer to your big goals and dreams?  With a little extra cash in your pocket, what would you bring you most happiness: a family holiday to share some precious quality time OR finally giving your living room a facelift so your can make the most of your down-time together?  In your career, is your priority getting that qualification that you know would up your professional value OR do you need to extend your network and mix with mentors at more industry events so you can build your reputation.  If you can’t have it all, work out where your heart lies, which route is the best next step towards your goals, and invest there.

2. The long-haul:  Ask yourself “is it going to change my life?” when you think of your wish-list.  Is it really an investment into your happiness in the here and now, something that will get you closer to your dreamed reality in the future, OR is it a flash-in-the-pan you’re lusting after?  If it’s going to make a difference now or in the future it may well be a wise investment.  If not, it could just be a shiny penny you’re chasing: give yourself some breathing space, a self-imposed cooling off period and see if you still want/need it quite so much in the cool light of day.

3. Save, save, save: Remember – if you want to get rich, live below your means.  Think of/take a look at your spending wish-list and see it as money that you wont have made available for yourself in the future.  With a little patience, and the beauty that is compound interest, saving now could create lots more opportunities for investing in your tomorrow.

What’s on your wish-list?  Is there a big expense you know will get you closer to your goal?  Is there things on there you know, in truth, are just a fad? I’d love to hear from you in the Comments below…

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