Earn, Don’t Burn: What to Do with Money You’re Tempted to Spend

It’s easy to feel the urge to spend when you see extra money sitting in your bank account. It can be a challenge resisting this desire to go big on spending after receiving a bonus, an unexpected windfall, or even just leftover cash after paying your bills.

Instead of spending impulsively, however, why not use that money to set yourself up for something bigger and more rewarding? Here are some smart ways to make your money work for you instead of letting it slip through your fingers:

1) Start or Build Your Emergency Fund

Life is unpredictable, and sudden medical bills, home or auto repairs, or even the loss of your income can hit you when you least expect it. If you don’t have an emergency fund yet, start building one by putting your spare funds in a high-interest-rate savings account like one from Maya Bank, which makes it possible to earn up to 15% per annum in interest every day. Aim to have at least three to six months’ worth of living expenses set aside for emergencies or events that can interrupt your livelihood.

2) Invest for Growth

You can also put your extra funds to work by investing them. These days, you don’t need to be a financial expert to start, as there are investment options like mutual funds, index funds, and even stock trading apps that are easily accessible to beginners and that will allow you to invest with just a few clicks. One particularly beginner-friendly option is the Maya Time Deposit Plus account, which will allow you to deposit money any time for a lock-in period of 3, 6, or 12 months and earn a boosted rate of up to 6% per annum if you hit your target amount and term.

Try investing small amounts through low-stakes investment vehicles to get a feel of the investing process. The earlier you invest, the more you can benefit from dividends or compounded funds over time.

3) Pay Down Your Existing Debt

Instead of spending on things that give you short-term satisfaction, prioritise paying down your credit card balance or personal loans. High-interest debt can eat away at your finances, and clearing it sooner means you’ll save money on interest in the long run.

First, focus on debts with the highest interest rates, like credit cards. If that feels overwhelming, try the snowball method, which entails paying off smaller debts first to build momentum. Either way, every peso paid toward debt gets you closer to long-term (instead of just temporary) financial freedom.

4) Save for a Big Goal

Are you eyeing a significant purchase like a phone or a vehicle? Instead of spending on impulse buys, put that money toward a meaningful goal and use it to attain your financial objectives.

Creating a “goal fund” may help you stay particularly motivated and focused. It’s a good idea to set up a separate savings account specifically for this goal and transfer funds to it regularly. You can also explore a financial feature like Maya Personal Goals to create temporary sub-accounts for specific savings goals, like buying a new electronic device or paying for a solo vacation for a major life milestone. Watching your savings grow in each sub-account will make it easier for you to resist smaller, less meaningful purchases.

5) Start a Side Hustle

It’s also an option to use your extra funds to earn additional funds. If you want to try opening an online bakeshop, for example, you can use your money to buy baking tools and supplies. A little bit of additional funding can also help you kickstart a blog, resell clothes online, or even buy new art tools. Spending your money in this manner will allow you to turn a small investment into a new income stream.

A side hustle not only increases your earning potential but also gives you a creative outlet and puts you a step closer towards financial independence. Plus, the extra income can help you fund your future goals even faster.

6) Treat Yourself, But Keep It Within Limits

Now’s a good time to remember that saving money is not about never spending, but rather, spending wisely. Give yourself a small “fun budget,” maybe 10% to 20% of the extra money, that you can use to spend guilt-free. You could spend this part of your fund on a meal at your favourite restaurant, a new book, or a coffee date with friends. Setting a limit will allow you to continue to enjoy your money without derailing your financial goals. The key is to be intentional about where your money goes.

7) Fund Your Retirement

It’s easy to put off saving for retirement, especially when it feels so far away. But starting early gives you the advantage of compound interest, and you can do that by opening a private retirement account. Even small, regular contributions over time can help make this fund grow into a significant amount by the time you retire. If you choose this route, in the future you will be thankful for the smart financial decisions you are making today.

8) Upgrade Your Skills

Investing in yourself is one of the best uses of your money, as the improvements in your skills can lead to career advancement and new opportunities. It’s a practical choice to use your extra funds to take an online course, attend a workshop, or buy books that will help you grow professionally or personally.

9) Donate to a Cause

Giving back can be just as rewarding as spending on yourself. If you have extra funds, consider donating to a local charity or supporting a cause you care about. Helping others will not only create a positive impact but also impart to you a sense of fulfilment.

Rather than self-deprivation, resisting the urge to spend is about making smarter choices with your money. If you can shift from impulse spending to intentional saving and investing, you’ll be able to set yourself up for long-term financial success. Practising delayed gratification in this manner as an adult may not give you immediate rewards, but the financial freedom and peace of mind you’ll gain are more than worth it.

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