I have a hard time spending money (usually). I have spent many years living on a small amount of money and am quite used to it.
Currently, after my expenses and after contributing to a retirement account, I have roughly $1000 left over. Once my child turns 18, this will go down to $600 left over (currently receiving child support and a government benefit).
Right now, this extra money is just sitting in my chequing account because I don't know what to do with it.
Here are my options (as I see them):
1. Buy a vehicle.
I don't 'need' one. I live within walking distance to work. When I need a car for daytrips or to visit people out of town, I rent one. This costs me $20-40/day plus gas. I usually rent once every month or so. The idea of paying for insurance, gas, maintenance, parking, etc on a regular basis, not to mention the actual purchase price of the car, makes me feel ill. But it would be convenient, I guess?
2. Put more money in savings.
I am currently putting enough in my retirement account to retire at 65. Would it be nice to retire earlier? Yes.
3. Improve my housing situation.
I live in an apartment - it's fine, I've been there for several years. It's a decent neighborhood, the rent is reasonable (cheaper than anything else in the neighborhood). It doesn't have a balcony and I would like one or a yard. To get an apartment with a balcony in this neighborhood, it would be an extra $200-300/month. Yikes. I don't think I want it that badly. To get part of a house with a yard I'm looking at $500/mth more than my current rent. Or I could save for a downpayment but I don't really want to buy.
4. Travel
Not much desire to go overseas, but would be nice to travel within the country. So expensive though! So it's hard to justify.
5. More daytrips/outings/entertainment
This I can see doing, but not to the tune of $600/mth. Maybe $100/mth.
6. Buy stuff.
Like a coffee table. Or an xbox for the kid.
Share your wisdom with me!!