9 Best Ways To Spend Your Last $20 Each Month
You made it. You reached the end of the month without spending outside of your budget. Finally, the end of the month is in sight and you’re miraculously still left with $20. Now what?
While your first instinct might be to splurge on takeout, experts say there are better ways to spend those last extra bucks.
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“If you’ve almost reached payday and you still have $20, you should be proud of yourself and commit to using that $20 in the best way possible,” said Melanie Musson, finance expert with Clearsurance.
Here are some of the best ways you can go about it.
Buy Groceries
“Spend your last $20 on groceries to get a headstart on the next month’s grocery budget,” Musson said. “If you can use your money to help you get ahead the next month, you’ll be more likely to have a little extra the next month.”
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Start Building an Emergency Fund
“As a finance expert, I would recommend putting your last $20 into an emergency fund before payday,” said Michael Ashley, finance expert and founder of Ashley Insights.
He said having even a small emergency fund can provide a financial safety net in case of unexpected expenses or emergencies, such as a medical bill or car repair.
“By building up an emergency fund,” he said, “you can avoid having to rely on high-interest credit cards or loans to cover unforeseen costs, ultimately helping to protect your financial stability in the long run.
“It’s a positive step toward financial security and peace of mind, ensuring you’re better prepared to handle any financial challenges that may arise.”
Pay Off Debt
According to Dayten Rynsburger, chief revenue officer at Niche Capital, you should be spending your last $20 on any debt you have.
“It may not seem like much but debt compounds,” he said. “This means any fees you owe for the month get added to your principal balance. Then next month you pay fees on that larger balance.
“Twenty dollars is more than you would think,” he added. “It is the amount of interest you would pay on a $1,000 credit card balance or 20% of some credit card’s annual fee.
“The goal is to not think in terms of amounts; the goal is to work at something with consistency. Last $20? Put it on your debt, period.”
Invest In Knowledge
Some experts recommend spending your last $20 on something to improve your life.
“Buy a book about finances or mental wellness and invest in yourself,” Musson said. “Making your life better is valuable.”
Rhett Stubbendeck, CEO and founder of Leverage Planning, added, “When it comes to advising my clients on how to spend their last $20, I emphasize strategic, long-term thinking.
“I always suggest looking for ways to expand your knowledge base. Whether it’s buying a secondhand book on a topic that could enrich your professional skills or paying for an online workshop, investing in yourself pays dividends.
“It’s about leveraging small amounts for greater future gains.”
Invest In Education
“One strategy I’ve learned is the value of investing in your future, no matter how small the amount may seem,” said Griff Harris, certified insurance counselor and president of Griffith Harris. “With your last $20, consider purchasing a book on financial literacy or investing in an online course that can improve your skills and employability.
“Education is a powerful tool for financial empowerment, and leveraging small amounts towards learning can yield significant returns in both your personal and professional life.”
Spend on the Arts
“Exploring something beautiful is an investment in yourself,” Musson said. “Whether you go to a museum or a concert, fill your life with something lovely.”
Start Small, Think Big
“If you have any interest in gardening or cooking, buying seeds or basic ingredients to prepare meals can save you significantly over time,” Stubbendeck said. “It teaches self-sufficiency and the importance of small investments leading to substantial savings.”
Invest In Networking
“Utilizing your last $20 to attend a networking event might seem risky, but it’s about the potential return on investment,” Stubbendeck said. “Building relationships can open doors to opportunities far exceeding the initial cost. This is something I’ve personally benefited from and constantly advocate for within [my company].”
Invest In Stocks or Bonds
If you’re in a stable financial position, Harris recommends looking into micro-investing platforms that enable you to invest small sums in stocks or bonds.
“This could not only potentially increase your money over time but also familiarize you with the investment world,” he said, “making it less daunting to increase your contributions as your financial situation improves.
“The goal with the last $20 is not to transform your financial situation overnight but to make incremental steps towards a healthier financial future.”
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