7 times you’re better off spending than saving
Yes, we all need to have cash on hand, but investing in your health, future and happiness is money well spent
Money is a utility that, in its best form, is meant to improve our lives.
As such, there are a few times where a product, service, or experience is worth the additional cost (as long as you’re not slipping into credit card debt because of it).
For example, you’re better off spending money on a life insurance policy to protect your family than not having one at all; paying a professional for help with your money if you’re paralysed by indecision; and yes, buying the latte if it’s something you enjoy and it doesn’t distract from your other goals.
Here are seven times you’re better off spending than saving:
1. To maintain good health
Your health is priceless. Whether it’s opting for a more expensive health insurance plan at work because the coverage is better, ponying up for an gym membership, or picking organic produce at the grocery store, you shouldn’t feel guilty about spending money when your mental and physical health is on the line.
2. To protect yourself with insurance
If anyone relies on you for financial support, life insurance and disability insurance are a must-have. In exchange for paying a monthly premium, a disability insurance policy will provide an income stream if can no longer work due to an injury or illness, while a life insurance policy will pay out a lump sum if you pass away.
In the US, the average cost of a 20-year term life policy for a healthy 35-year old male runs from about US$20 a month for US$250,000 of coverage to US$100 a month for US$2 million of coverage, according to Policygenius. Long-term disability insurance premiums run anywhere from 1 per cent to 3 per cent of your salary.
Ask anyone with life or disability insurance and they’ll tell you: it’s a small price to pay for peace of mind and financial security.
3. To buy things that bring you joy or save you time
As long as you’re cutting back on the things you don’t care about, it’s OK to spend money on the experiences, services, and products that bring you joy or make your life easier.
