4 Smart Ways to Spend Spare Money

If you find yourself with extra cash after covering all your monthly expenses and bills, consider yourself very lucky. Initially, when you have money to spare, it’s natural to have items on your wish list that you want to purchase, and there’s absolutely nothing wrong with indulging in that desire.

Whether you want to buy new clothes, a TV, décor items for your house, or even a pet, buying things that make you happy with spare money you’ve earned is nothing to feel bad about. That being said, there will likely come a time when you’ve bought everything you want to buy and are then looking for smart ways to spend your leftover income.

If you’re unsure what exactly to spend your spare money on, here are four smart ways you can do so.

Donate it

Donating money is a great way to spend spare funds. It may not benefit you directly, but it will make a difference to someone in need or a cause that needs support and assistance. There are so many different causes you can donate money to, and you can pick one based on what you’re passionate about.

For example, if you’re passionate about education, you can donate to a charity that provides equipment or transport for children to get to school. On the flip side, if you’re interested in climate change, you can donate to a conservation charity, be it for land or sea.

For those who have religious obligations to fill, such as in Islam, making a charitable donation with excess money is even smarter. For example, you can make a difference by spending your Zakat to build a water well, helping out a community in need and fulfilling your dues.

Whatever your beliefs, donating your spare money is always a morally good choice and a smart use of it.

Save it

An obvious way to spend your spare money is to save it, even if you don’t have anything in particular that you’re saving for. You may already own your home and have paid for your yearly holiday, but that doesn’t mean you can’t benefit from having some savings.

Life comes at you fast, and there’s every chance that you might need to fork out for an unforeseen outlay, such as a new car, a new sofa, or a costly house renovation. This is why saving money is always a good use of spare money.

Pay off debt

If you have a car on finance, a phone contract to pay, or outstanding loans, it’s never a bad idea to pay them off as early as possible. You might be able to do so in full, but you could always use your additional money to make extra repayments or larger repayments. This will shift your debt quicker and reduce your monthly outlays, eventually giving you more spare money.

Put it in a retirement fund

The fourth smart way we’d recommend you spending your spare money on is by putting it in a retirement fund. It might seem like a waste in your 30’s, but when you’re in your 7’s and able to live life more comfortably, you’ll be happy you did so.

There are lots of different types of retirement plans out there, so make sure you do your research to find the one with the best benefits that will give you the maximum output for what you put in.


There is no right or wrong way to spend money, but these are four ways you can be smarter about how you spend if you’re looking to be more savvy.



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