What would you do if you had an additional $100 to spend every month?
For some, having excess income (after expenses and savings) might not be attainable at all. But with some proper money management, you might find yourself with a little extra money every month.
What do people usually do with this money? Personally, my excess income goes straight into travel without a second thought.
But I have many friends who like to invest this money into stocks or funds.
Others will use it to save up for a little indulgence in jewellery.
So, who is handling their money best?
Spending money with no returns, even intangible returns, is a waste.
Imagine going into a restaurant, spending $500 on a meal you are not happy with. You will walk out unhappy, $500 poorer.
When you have excess money to spend, whether you choose to spend it on jewellery, travel, or stocks, what matters most is that it is what YOU want to do with your money.
If you love jewellery, perhaps go with a unique, one-of-a-kind piece that could potentially appreciate in value over time. Don't forget, like watches, jewellery only increases in value when it becomes vintage and if it is limited edition.
One must truly have a passion for jewellery if one were to invest in it. You will need to understand its provenance, its brand as well as its future demand.
For example, pieces by renowned designers often retain their value and over time, appreciate. Long-standing names like Cartier, Van Cleef and Arpels, and Bulgari are brand names that will never go out of fashion. Go for collections that are limited and rare. But be prepared to wait 20 to 30 years to see its value realised.
If you're the kind who loves discovering hidden gems while travelling instead, then perhaps your money is better spent on exploring the world.
To me, money spent on travel is never wasted. I may not be buying anything material that can be kept in a safe for it to appreciate over time...
But what I am investing in is a thirst for adventure, a world-sized pool of knowledge for me to drink from and experiences that cannot be replicated.
Travelling opens up the mind, exposes you to different cultures and people. The treasure you gain from spending on travel may not be physical, but it is something that will never lose its value.
See: The Luxe Nomad founder Stephanie Chai's story about how investing in travel has made her a better entrepreneur.
Some believe that their money should make them more money. These people would be the kind who find value investing a practice they adhere to strictly.
It brings them utter joy to see their portfolios grow in size and watch as their returns grow year-on-year. But like any investment, there are risks.
Some learn from making mistakes and improve themselves as investors from this point. That, they believe, is also money well spent.
Which would you spend on? Let us know in the comments!
Read more articles about money and investing here: