The best things in life may be free, but you can’t buy groceries with sunshine and puppy snuggles. You’re going to need to swipe your credit card or plunk down some cash at some point.
But just because you’re spending money doesn’t mean you have to waste money. There are even some purchases that will initially cost you but will save or earn you money down the line. Let’s look at a few examples.
1. Sign up for an airfare watch membership
It’s a privilege to get to travel and explore the world, and an expensive one at that. You’re probably looking for ways to keep your costs down when you travel, so signing up for a paid airfare membership may feel like moving in the wrong direction.
But paying a relatively small fee at the outset can give you access to huge savings over the course of a year. If you travel often and have a fairly flexible schedule, these types of memberships can direct you to steep discounts on airfare.
Popular website Going notes that on average, premium members who pay a $49 annual fee can save up to $550 per international flight. In just one trip, you could be ahead by more than $500 compared to if you researched ticket prices on your own.
2. Join Costco
People who’ve never shopped at Costco probably wonder why anyone would pay $65 a year just to shop for groceries (or $130 per year for the Executive membership). But people who have shopped at Costco will likely launch into a soliloquy of what makes it so worthwhile.
I won’t say that Costco is for everyone; you need space to store bulk purchases and enough people in your household to enjoy the perishable items before they go bad. But the savings you can find at Costco are as deep as the Mariana Trench. (Seriously, search “Costco” here on The Ascent and you’ll spend the rest of your days reading about it.)
Depending on what you buy, it can be a cinch to cover the cost of your membership fee in one visit to the warehouse store. If you’re planning a party, buying a big-ticket appliance or electronic item, or stocking up before a long winter season, do some comparison shopping and see if Costco can put you ahead.
3. Pay for a career advancement certification
The whole point of working is that your job pays you, right? So while it may not feel like it makes sense to put money into your job, the payoff can be worth it.
Let’s say you pay a few hundred dollars for an educational course or certification program. While you may have to budget a little bit initially to make it work, you can potentially increase your income, whether at your current company or at a new job.
Monster put together a list of the 10 best certifications to increase income, and each option had an average increase of at least 25%. That’s more than five times higher than the average annual pay increase of 4.8%, according to U.S. News & World Report.
4. Set up a bank account for passive income
This idea isn’t so much about spending money, but it does involve an initial outlay. If you’ve been able to save up some cash and don’t know what to do with it, consider opening an account that can allow you to earn money on your money.
One great option right now is a high-yield savings account. These accounts have been paying excellent rates of late — some as much as 5% or more. While the rates aren’t guaranteed to last, savings accounts are a secure, reliable place to park your cash.
Another option could be a certificate of deposit (CD). These accounts have also been paying historically high rates lately. While you have to agree to lock up your cash for the entire length of the term, CD rates are guaranteed for that entire time, meaning you’ll know exactly how much you’ll earn simply for leaving your money alone.
Spend to save
Look, it’s your money, and you can do whatever you like with it. But if there’s a chance it can earn you even more money down the road, isn’t that worth spending on?
