Having money allows you to live a comfortable life. If you spend your money appropriately, you can live the way you want. In fact, some things are worth splurging cash on like goods and services that are capable of earning you more money in the future. These include things like education and experiences. Here are 6 things worth buying according to Kimberly Palmer, a personal finance expert at American personal finance website, Nerdwallet. The site helps people make sound financial decisions by comparing different products and services offered by financial institutions like banks and insurance companies.
When you make a purchasing decision, do you go for cheap goods or services because you want to save money for emergency expenses? Or do you spend because you love the best things in life and no one is in control of tomorrow?
People who are considered good with money follow a specific criteria when making purchasing decisions, more so when it comes to splurging on goods or services.
According to Kimberly Palmer, people who are considered “good” with money are strategic about their expenditure and savings. They don’t get surprised by emergency expenses because they plan ahead for such eventualities. They also have plans for “good things” like holidays and their children’s education.
In her interview with Business Insider, Palmer went ahead and stated that splurging isn’t for everyone. Palmer warns against splurging when you are already living beyond your means or when you have a credit card loan. According to her, you should use the 50/30/20 budgeting rule that states; 50% of your entire budget should be spent on needs while the remaining 30% and 20% should be spent on wants as well as savings and debt/loan repayment, respectively. If you’re not sure which items are worth splurging on, here are 6 things people who are smart with money splurge on – tap read more!