Money plays an important part in your life. You want to have enough to pay your bills on time and live comfortably. 

There may come a time when you are able to get ahead financially. In this situation, it’s wise to take a step back and re-evaluate so that you don’t have any regrets later on about where it goes. Think long and hard about how to use it before making any big decisions. Here you can review eight ways to spend your money when you have extra income. 

• Put it Towards A Costly Hobby

You may be someone who enjoys spending your free time doing something fun and exciting. Hobbies are a great way to get the most out of life while at the same time learning or developing new skills. Whenever you have some extra income to spend, you may want to consider putting it towards taking up a new and expensive hobby. There are some activities that require costly equipment or gear. For example, you might want to take up boating or four-wheeling. Other ideas include playing polo or getting into golf. It’s your opportunity to do something that maybe you couldn’t afford to do as a kid. 

• Purchase A New Vehicle

Another way to spend your money when you have extra income is to purchase a new vehicle. Your car may be dated and not as stylish as you want it to be. Therefore, you can start shopping around and seeing what makes and models are in your new budget. Remember that you’ll not only need money for a down payment but also for insurance costs, maintenance, and license and registration. While you have some extra money in your pocket, you might want to consider getting private or specialized number plates, which is a unique and classy touch. Make sure that you take good care of your new car by having a safe spot to park it, cleaning it regularly, and getting it serviced on time.  

• Take A Vacation

You may be someone who works a lot, especially if you’ve been promoted and are now taking on more responsibilities at your job. Therefore, it might be a wise idea and in your best interest to go on a vacation. Spend your money by investing in a lavish trip to someplace that you’ve never been before. You may now be able to afford taking an international trip, for example. Traveling is a very rewarding experience and can help get you outside of your comfort zone. Be sure to have someone covering for you at the office so you can unplug and get the most out of your adventures. There are many good reasons to travel, such as giving yourself a break from your to-do list, being able to try new foods and meet new people, and exploring historical landmarks. You will return home feeling refreshed and ready to get back to your schedule. 

• Pay Down Debt

Having a lot of debt looming over you can be frustrating and stressful. If you have some extra income and money to spend, then consider paying down debt. Gather your debts and begin paying off the debt with the highest interest rate. You may have a large credit card balance or a particular loan that you want to tackle. Get organized and figure out a payment plan that is reasonable and that you can stick to. Getting rid of debt can feel very freeing and is a step toward being able to achieve financial freedom. Work these payments into your household budget so that you have the money set aside to cover this cost. 

• Make Home Upgrades

Another way to spend your money when you have extra income is to make home upgrades. You may enjoy your neighborhood, but realize that you haven’t made any improvements to your property over the years. You will fall back in love with your home and not have to move if you invest your money into these enhancements. Weigh your options and consider moving forward with projects that will increase your home value and give you a return on your investment. For example, now may be the perfect time to remodel the master bathroom or install a brand new kitchen. 

• Treat Yourself

You should never feel bad about practicing self-care and doing something nice for yourself. If you have extra income to spend, then consider different ways you can treat and reward yourself. For example, it may be scheduling a day at the spa to relax and rejuvenate. It may also be that you’ve been eyeing up buying a new TV or have been wanting to dine at a fancy and expensive restaurant in town. Now is your chance to have some fun without feeling any guilt. While money can’t buy happiness, it can help boost your mood every so often and improve your lifestyle. 

• Invest it

It’s important to make sure that you’re financially secure well into the future. You’re going to want to stop working and retire from your job someday. Therefore, you will want to find ways to bring in even more income and money than what you’re already earning. In this case, consider different ways in which you can invest your money. You may want to invest it in the stock market or educate yourself on trading and experiment with doing some day trading in your free time. If you’re unsure of how or where to invest your money for the best return, then think about working with a financial advisor who can help. 

• Save It

Life is full of ups and downs, including unexpected expenses and circumstances. You never want to fall into the trap of being too financially comfortable. If you have extra income to spend, then consider the option of saving it up over time. Put some away every month so that you can successfully build an emergency fund for yourself. You’ll sleep better at night knowing you have this money that you can dip into as you please. Instead of having to pull out the credit card to cover pop-up expenses, you can use the cash you already have in the bank.