Have you ever heard the saying, “You have to spend money to make it?” I have. In fact, I’ve given that cliche statement as advice half a dozen times. While I tell entrepreneurs to spend money on the right team, I never use that advice myself. After all, I’m in my twenties still! I don’t have the luxury of spending money as if I’m made of it!
But these excuses are detrimental. In fact, the idea of spending money to make money is not as dangerous or risky as it may sound. Sure, it seems counter intuitive, but bear with me. I promise it will make more sense soon.
Saving Every Penny You Earn Can’t Bring You to Your Desired Destination
So many people think the only way to save money is to give up their social lives in order to minimize all those “unnecessary” expenses.
What’s problematic with this approach, aside from how miserable you will be ignoring your friends’ invitations, is that it’s only a short-term way to save money. Think about it: are you really going to stay at home and never come out forever? The goal is to be future-focused; saving every penny and dollar you can is not exactly effective. What’s more important is spending on the investments that can bring returns.
I know what you’re thinking, “But Heather, I don’t know how to invest in general! How will I know how to invest in order to double my dividends? That’s for business-savvy people and those really good at math!”
While knowledge of those things can be helpful, anyone can be an expert investor and spender. You just need a little insight. Plus, we aren’t talking about becoming an investment banker. We’re talking about knowing when to invest your money into something and when to withhold. And it’s easier than you think.
Spending Money in the Right Way Can Help You Generate More Money
Enrich your mind through lifelong learning
This is one of those long-term money-making methods. While some people may find it unfair, the more educated you are via school system, the more desirable you are to companies who are hiring. This comes in handy when discussing salary, because the more experience college or university gave you (even in the form of unpaid internships) the better chance you have at requesting more than you might otherwise feel comfortable.
Even if you’ve left the formal education system, taking classes after work to expand your skill set can make you more popular and competent in the job market in the long-term.