Five ways to spend smarter

October 31, 2020 A.M. Kuska

With the world falling into recession in the wake of the novel corona virus, it seems like everyone is feeling the pinch of today's brutal economy. Even if you've managed to escape the economic ravages of Covid-19, how you spend your money can greatly effect your quality of life.Luckily, while you can't get out of spending your money entirely, learning how to spend it wisely can benefit you both short term and long term. Here's how to get started.

Buy things with resale value

If you have a choice between purchasing a purse that does the job of holding your stuff (for a while anyway) and a name brand purse with resale value, it may be more worthwhile to get the name brand bag. Products with resale value are better for the environment because they can be sold on and used by someone else after you are done with them, and also better for your bank account because the money you spent will eventually come back to you—at least some of it anyway.

While this doesn't work in all situations, its worth making it part of your thought process when working out what product you should buy.

Look at cost per use

A pair of shoes that costs $20 at Pay Less will cost you a lot more than a sturdier pair that costs $80.That's because while you might end up back at the shoe store in 3 months after holes wear through the bottom with the cheap pair, the more expensive pair might last you several years.

Look at time savers

Your time is also valuable. Time lost is also money lost, so it's worthwhile to look at purchasing products that save you time. If you find yourself wasting a lot of time on your bills trying to keep track of everything, a piece of software that helps you get through in half the time may be worth the price.

Ask yourself if there are any indirect savings involved

Do you plan to buy a coffee pot so you can stop purchasing $5 lattes? While you can't measure the cost per use or how much time you saved, dropping your costs from $5 per latte to $0.50 will certainly save you money. This is a very smart buy. If it's time to buy a new car and you're looking at an electric car,all the money you save on gas would be an example of indirect savings.

While not spending your money at all is the best way to save, it's not practical or even possible. Bills still have to be paid, and life isn't worth living if you don't do anything during that time. By choosing to spend your money on things that add value to your life in some way, you'll get more out of every dollar you earn. Life should never be about money, but if you can use it to pave the way for more experiences,it will help make your life more enjoyable.