Having a job and the means to earn money is a blessing that people could always be more thankful for, and spending on the right things will go a long way in making sure that one will have enough when the unexpected happens. The people who are good with their money go one step further than everyone else, though.
The things they decide to buy are usually the stuff that helps them be more productive, healthy and inspired. This habit feeds them into a self-fulfilling cycle that, more often than not, sets them up for success in their finances and life in general. As a rule, they are also prepared for everything from vacations to emergencies, according to Kimberly Palmer of Nerdwallet.
"A good rule of thumb to determine if you are overspending is to apply the 50/30/20 budgeting method, where 50% of your budget goes to needs, 20% to savings and debt repayment, and 30% to wants," Palmer explained.
How one spends this 30 percent separates smart spending from mindless splurging. At the top of the list of those who are good with finances — products that help them earn more money, according to Business Insider. Similarly, Palmer recommends investing in services that save people time, as well.
High-quality cookware and kitchen appliances not only last for decades, they also save people even more money by nudging them towards cooking for themselves. They eat healthier and save so much that way, as Palmer pointed out.
"I always splurge on this," she added.
Another avenue for spending that's sure to bring dividends is, instead of shopping for things, spend on experiences instead. It could be an eye-opening travel plan or a monthly membership at a good gym.
Lastly, Palmer encourages people to depend on the one thing they can derive happiness from. In this case, "a great splurge to one person is a waste of money to someone else," Palmer allowed. But if it leads to fulfillment, it's money well spent.