What are the best things to spend money on?

You know how much I love saving money!

And while I think saving is essential, it may be hard to believe, but sometimes I think you have to spend a little money, too.

While I’m all about saving a buck where ever I can, there are a few instances I believe it’s worth it in the long run to spend a little more.

In these instances, it’s a better idea to choose quality over a bargain.

In addition to allowing you to purchase a better item, paying a little more might actually save you money in the long run!

While I don’t condone overspending, it’s a good idea to make a big purchase if it falls into one of the categories listed below.

These items are the best things to spend money on when you’re making a big purchase or coming up with ways to use some extra cash.

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Your Favorite Thing to Spend Money On

Before you start thinking about the things you should be spending your money on, take the time to consider the things that are important to you.

There’s no reason to scrimp and save throughout your life if you never enjoy the things you do spend your money on!

Taking inventory of the items that are important to you will help you uncover areas in your life where you’re willing to spend a little more and areas where you’re OK with cutting back.

In addition to giving you an idea of the things you value the most in your life, allowing yourself to spend a little extra will also make saving money in other areas a little more bearable.

When considering the things you would consider spending more on, think beyond material “stuff.”

Instead, think about the things that make you happy or make your life easier, then consider if spending more in those areas would be beneficial.

By considering your spending areas that are important to you as you create your budget, you can allow yourself some leeway when it comes to those valued categories.

27 Best Things To Spend Money On

Below is a list you can use as a guide to help create a spending framework that will help you make financial decisions.

This will also give you a chance to find areas in your budget where you can reduce your spending to give you more cash to spend in the areas you value most, making budgeting a little more fun and fulfilling.

Things to Spend Money on for Your Home

Whether you just purchased a new home or are hoping to update the house you’re living in, purchasing items for your home can quickly get expensive.

From updating your furniture to making large renovations, there are tons of different ways you can spend money on your home throughout your life.

Although there are several areas where you can opt for cheaper items in your home to save some money, spending a little extra on these items is a good idea.

1) Mattresses

Think about how much time you spend in bed each day.

With the majority of your day spent laying and sleeping on top of your mattress, it’s a good idea to make an investment in a high-quality brand.

Although purchasing a high-quality mattress is expensive, the cost is worth it when you think about how a good mattress will improve your overall quality of life.

On top of helping you get a better night’s sleep, a good mattress can also improve your posture, mood, and overall wellbeing.

2) Furniture

While purchasing used furniture may be great idea when you’re living alone, once you have a house and a family, it may be a good idea to invest in better furniture.

Spending a little more to have sturdy, comfortable furniture in your home is a good investment that should last for years to come.

3) Large appliances

If you’ve ever bought a used refrigerator or washing machine, you know that those purchases usually aren’t money well spent.

The next time you’re in the market for a new large appliance, take the time to do your research to make sure you’re getting the biggest bang for your buck.

And when it comes to home appliances, sometimes that means spending a little extra for a better brand or more advanced features.

good things to spend money on

4) Home repairs

Although it’s perfectly fine to make small home repairs on your own, sometimes the project is bigger than you can handle.

Instead of scrimping on supplies or labor, it’s probably a good idea to consider paying a higher price for quality work.

When dealing with large projects, like roof repairs, foundation issues, electrical repairs, or plumbing work, it’s important to ensure the project is done correctly the first time.

Or you may risk spending even more to fix an even bigger problem down the road.

Spending extra on health and wellness

It’s OK to Pay More.

I love finding a good deal, but sometimes scrimping isn’t the right call.

There are a few times it’s fine to pay a little more to ensure you’re getting a quality item.

When shopping for these things, it’s OK to pay a little extra.

5) Work shoes

If you work at a job that requires you to be on your feet all day, investing in a high-quality pair of work shoes is essential.

On top of making you more comfortable throughout the day, wearing good shoes while you’re standing all day will also ensure you have better posture and proper blood flow through your feet as you work.

When I worked in a retail store, Campers shoes were my go-to brand. They were comfortable and chic. One pair (with daily use) lasted years.

6) Running shoes

In addition to investing in good work shoes, paying a little extra for running shoes is also a good idea.

High quality running shoes can provide you with proper support while you exercise, reducing your chances of injury as you work out.

I don’t run anymore, but when I did, I always used Nike running shoes for basketball, volleyball, and track.

important things to spend money on

7) Timeless workwear

Investing in a few high-quality, classic pieces of workwear is a good investment when you consider the cost per wear of the clothing.

Look for items that can be worn a variety of ways to ensure you can use the more expensive clothing from week to week to make the most of your purchase.

I actually no longer buy clothing because I have a capsule wardrobe. I have all the clothes I need within it.

Here’s my capsule wardrobe planner if you’re looking for ideas for your capsule wardrobe.

8) Baby care products

Paying a little more to purchase high quality diapers, organic baby food, and chemical free bath products is a small price to pay to improve your baby’s health and well-being.

From purchasing new baby furniture for the nursery to buying the best diapers for your newborn, paying a little extra for the best baby products is a good investment to consider.

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Beneficial Ways to Spend Your Money

If you have extra cash laying around, you may be wondering what’s the best way to spend it.

Instead of purchasing new “stuff” to clutter up your home, think about other ways you could use your money.

There are a few great options for spending your money when you want to make the most of the cash you have on hand.

9) Paying down debt

Instead of increasing your debt by making another big purchase, why not use that extra money to reduce the burden of debt you already have?

Paying an extra amount of money toward your existing debt can not only reduce the overall amount you owe, but it will also decrease the amount of interest you’ll be paying on the debt in the future.

To help with tracking and managing debt, here’s my debt tracker. It tracks up to 10 debts over 10 years. It highlights paid debts and includes a debt-free date. If you’re interested in purchasing this spreadsheet, you can click here to get a 15% off coupon.

10) Put it in a savings account

If you don’t already have one, open up a high interest savings account with your extra cash to set aside some money for the future.

When you put your money in a high interest account, you can earn money on your savings while it sits in the account.

Having this emergency fund is a great way to ensure you have money on hand in case you have a large bill that needs to be paid or a big repair that needs to be made.

If you’re looking to track your emergency fund, here’s my emergency fund tracker printable. There are various quantities you can track and blank options. It comes in black & white as well as color.

11) Invest in your retirement

Another great way to use that extra cash is to invest it in the future.

Put the money in your retirement account or open up an IRA to start saving some money toward your retirement.

12) Create a bank account buffer

Are you constantly overdrawing your bank account?

Instead of spending that extra cash, put it in your bank account – then forget it’s there.

Use the extra money as a buffer in your account in case you overspend.

The next time you spend more than you have in your account, you’ll be covered by having a little extra in your checking account to cover your spending errors.

13) Make an extra mortgage payment

Did you know that making just one extra mortgage payment per year can drastically reduce the amount of money you pay on your loan overall?

In addition to decreasing your overall payments by a month, you’ll also be reducing the amount of interest you pay on the loan throughout its life.

That makes an extra mortgage payment a great way to invest that extra cash!

things worth spending money on

14) Pay down your student loan

Just like paying extra toward your mortgage, making an extra payment on your student loan can go a long way toward reducing your debt.

One extra payment per year can reduce your loan principal and decrease the overall amount of interest you pay on your loan.

15) Refinance your home or auto loan

Going through the refinancing process is a great way to help reduce your monthly payments or cut down on the length of your loan.

But refinancing usually comes with application and processing fees.

Using extra money to pay for those charges is a great way to improve your financial future, allowing you to reduce your overall debt and decrease your monthly spending.

16) Start a business or side hustle

Making an investment in yourself is another great way to spend extra money you have.

If you have ever thought about starting your own business or side hustle, using that money to invest in start-up costs can help you on your way to earning even more money in the future.

Here’s a list of the best work-from-home businesses or side hustles that are flexible and pay well.

Personal Things to Spend Money On

Not all your spending needs to be centered on material things.

Sometimes, it’s best to invest in things that improve your inner self.

From furthering your education to advancing yourself in your career, finding ways to spend your money to improve yourself is always a great investment.

17) Education

From going back to college to investing in education for your children, putting money toward learning will always pay back in the end.

Earning a degree or advancing your knowledge is a great way to spend your money and improve yourself at the same time.

You don’t have to spend much money to get actionable education. You can use a platform like Skillshare, which has a lot of courses available online.

The topics are endless from music to photography to film & video to interior design to productivity to business.

There are free courses.

There are also premium courses available at a cost. However, you can sign up here and get the first 2 months of Skillshare premium for FREE.

18) Career development

Just because you have a college degree doesn’t mean you should stop learning.

Investing in career development opportunities, like informational classes, coaching, or certifications, is another great way to spend some extra money.

On top of helping make you more appealing to potential employers, career development opportunities can also improve your self confidence and enhance your current abilities.

19) Financial education

Learning to take control of your finances can be an ongoing battle.

And sometimes, you need to invest a little bit of money to help you further your financial knowledge.

Whether you purchase a new book about money or invest in a financial literacy course, finding ways to use your money to help you manage your money better will always be a good investment.

If you’re new to personal finance education, here are the best books about personal finance for beginners. These personal finance books are simple and ease you into all of the best practices for making and saving more money.

If you’re a veteran in personal finance, here’s a list of the best personal finance books of all time. This list was contributed by a variety of personal finance experts and avid readers. Whether you’re targeting budgeting or investing, this list will likely have what you need to improve your financial situation.

20) Travel

Instead of investing in material things, consider putting your money toward a new experience.

Taking a trip is a great way to experience a new place and see life from a different perspective.

On top of allowing you to see a new place, traveling also gives you a chance to make some great memories that will last you and your family a lifetime.

What should I spend my money on

21) Experiences

In addition to spending money to travel, paying money to enjoy experience is also a great way to use some extra cash.

Whether you love listening to live music or enjoy looking at art in a gallery, spending money on experiences that make you happy is much better than looking for a new material thing to add to your home.

22) Hobbies

On top of making you happy, investing in your favorite hobbies can also help improve your overall well-being.

Whether you invest in trying a new hobby or upgrade your existing supplies, using extra money to invest in your favorite pastime would be a beneficial investment in the future.

23) Staying connected

While the most important thing you can invest into any relationship is time, you may also need to invest money to stay connected to friends and family.

From going out with your friends on a Saturday night to paying to travel to visit family who live far away, keeping connected with friends and family can cost a lot.

Although spending money on every opportunity that comes up isn’t the best idea, prioritizing connections when making a spending plan is a great way to make use of some extra money in your budget.

24) Fitness

Staying healthy is essential to improving your quality of life. And that means finding ways to incorporate exercise into your daily routine.

Although there are a variety of free exercise options available, sometimes spending money on your fitness is the push you need to stay on track.

If investing some money in an exercise class or gym memberships helps you stay in shape, then that’s money well spent.

If you are motivated, but just need some structure to your exercise routine, you could invest in a workout DVD.

I have a friend who spends 30 minutes every morning following a workout DVD. She’s been doing it for a few months and she is fitter than I’ve ever seen her!

I personally love using Just Dance. I usually sweat buckets after just 3 songs! It’s a great workout!

25) Mental health

Just as it’s important to take care of your body from day to day, taking care of your mind is also essential. That’s why you should never feel guilty for spending money to improve your mental health.

Visiting a therapist or counselor can help you stay mentally sound, which means the money you spend on improving your mental fitness is an essential part of your budget.

26) Time management

Sometimes, the best investment you can make is your time.

And if you find yourself spending way too much time on tasks that don’t benefit you financially, it may be a good idea to spend extra money to outsource the task.

Hiring someone to help clean your home, ordering a premade meal subscription, or paying a virtual assistant to handle time-consuming tasks can help free up your time, allowing you to have more time to devote to more productive tasks.

Related: Here’s an article on my favorite productivity tips. With managing the household, a baby and a toddler, and this website, these are essential to giving me the time I need to do everything I both need and want to do.

27) Giving back

Donating money to your favorite cause is a great way to improve the world around you and make yourself happy, too.

On top of helping a worthy organization, charitable donations are also good for your finances because they can be tax deductible.

Recap of Best Things To Spend Money On

  1. Mattresses
  2. Furniture
  3. Large appliances
  4. Home repairs
  5. Work shoes
  6. Running shoes
  7. Timeless workwear
  8. Baby care products
  9. Paying down debt
  10. Put it in a savings account
  11. Invest in your retirement
  12. Create a bank account buffer
  13. Make an extra mortgage payment
  14. Pay down your student loan
  15. Refinance your home or auto loan
  16. Start a business or side hustle
  17. Education
  18. Career Development
  19. Financial Education
  20. Travel
  21. Experiences
  22. Hobbies
  23. Staying connected
  24. Fitness
  25. Mental health
  26. Time management
  27. Giving back

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