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Professional Confessional

A blog providing tips and resources for life after college

Save or Splurge?

You have $20 in your wallet. Do you spend the last of your cash on something you want or save it?  Probably, spend it. If you didn’t have $20 in your wallet, would you use a credit card to pay for it? May be not. It is so much easier to spend the cash burning in your wallet. However, a credit card may be just as easy, but it comes with payments and possible interest charges. Here are a few things to consider before spending your last stash of cash or whipping out the credit card in your wallet:

1. Be intentional. Ask yourself – Do I really need what I am purchasing?  The little purchases add up to a large sum.  What is the investment?  Will this purchase last long term?  Think before you spend your cash.

2. Think long-term gain. Is the purchase only a short-term gain? Immediate gratification. If you saved the cash, what will you be able to purchase in the future?  It is easy to follow your impulse to gratify your “need” than to think long-term. However, it will pay off. Stay focused on your goal.

3. Create a “Needs & Wants” list. This will help keep your focus on items you truly need versus those that you want (i.e., would like to have). You can begin to save for the items you want on your list. If you want to take a vacation, then label an envelope with “VACATION” on it. When you have the urge to spend money on a short-term gain, then put that money into the envelope. You’ll be surprised at how much will save for that vacation you want to take – a long-term gain.

 

Test your save or splurge knowledge and win “lunch on us” with Chiptole gift card!

How to participate:

1. Register at CashCourse.

2. Participate in the quiz of the week.

Quizzes are located at the bottom of the home page under Resources.

Quiz schedule:  April 20-26: Save or Splurge?

Category: Professional Development

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