As many of us get geared up for Black Friday and the “incredible” deals the day offers we must ask ourselves: “Is this purchase something I truly need?”.
Take an investing look at a discretionary purchase you make this weekend.
For every $1.00 you spend today, you are potentially costing yourself an additional $10 in 30 years. For example, say you were to purchase a new TV on sale for $500. If you were to instead take that $500 and invest it in a retirement account or a brokerage account (and let the magic of compound interest take hold) it could be worth a whopping $5000 in 30 years! This assumes that you put the money into a portfolio returning 8% annually and allows the dividends to reinvest.
So before you jump the gun on an impulse purchase this holiday season ask yourself: “Is this dollar I’m spending now really worth the ten dollars it could be in 30 years?”
The choice is yours. Budget smart and invest wise!