It all depends on your priorities and on your personality. But it also depends on how much money we’re talking about here.
This is a very sensitive subject and separates the winners from the rest.
Generally, I think the first question you must ask yourself is this: If i had a bank manager, how would he use this money? Would he invest it in the stock market? Low-risk Options, so it yields more Return On Investment? Spend it on offline promotions, coupons and other marketing? You might say "well they all yield positive results". True. But which one of these options would your manager choose if he wanted to secure results in the future? At least in the current economical environment, stocks are cheap and offline budgeting is at its lowest, so a wise decision would be to re-invest your capital.
This analogy works well at Home as well. Should you invest your extra income in home improvement or vacation? I would consider Vacation as Investing in yourself and Home repair as Improving looks. If you invest in your own comfort, you’re investing in a double way: Your physical and mental comfort AND your own productivity when you come back to work. But I think the issue is quite deeper than this.
What are your priorities at the time of this question? Do you have other channels that could benefit from this extra money? Consider first your immediate family. Do your parents need an airplane ticket to come and see you but don’t have the budget? Did your child miss his last season gift? If none apply, take a look at your financials. Do you have Credit Cards you need to wipe out first? Are you getting ready to get married and need to save some money for the wedding or upgrade your house to a three-bedroom?
Each one of us must have a priority list. As i mentioned in one of my previous Factoidz, prioritizing your time is of utmost importance, but also prioritizing expenditure is as essential if not more. But more importantly, do not act immediately. Wait, reflect and think. Take your time before spending it, it might be the last time you receive an extra push or have to wait a long time before you receive another wave of extra income. Before thinking of your immediate comfort, larger sofa or that cruise in the Baltic, think of your independence as a human being. Billions of dollars are invested everyday by huge corporations that swear by their bank accounts to respect your freedom but end up selling you things you barely need. No one in this world can make financial independence happen more than yourself. Financial independence means a happier you and freedom to choose and decide. And freedom to choose and decide is the best return on investment your extra income can buy.
All the best,
Kevin Abdulrahman
