Everyone loves a great birthday gift, right? What if friends and family throw you some cash for your special day? What do you do? The debate could last several hours on this topic; in the realm of personal finance where any cash influx is an opportunity to reduce debt, what to do with the cash on Birthdays?
April is my birthday month – yippee another year young! If only, right? 😉 Oh joy and happiness, I’m one year closer to forty. Age aside, I was grateful to receive some extra cash from family and friends this year. Immediately my brain was confounded; what to do with this new found cash?
If you’re someone who is on a no spend year like myself, what do you do with the cash influx? The irony is, my family knows I may put it towards debt and they specifically say to me, please buy yourself something.
Irony of ironies, I actually find it challenging to buy myself something. I know, eh? How odd. Spenderella the fashionista doesn’t want to buy herself something, what is going on?
“You are traveling through another dimension, a dimension not only of sight and sound but of mind. A journey into a wondrous land whose boundaries are that of imagination. Your next stop, the Twilight Zone!”
The gods must be crazy. The earth is off its axis.
After much debate, and I mean much debate over what to do, my end result was to buy myself a few things I wanted but inevitably foresaw a need for.
What did I buy?
Of course, these were a few items that Spenderella herself had been eyeing up, but nothing too lavish. In the end, I pooled the money and purchased a bra ($60), low cost gold earrings ($30), two makeup brushes ($90) and a pair of quality black dress pants ($250) for work. Nothing overtly extreme. It’s not as if Spenderella went out and purchased a pair of Manolos. Although I would love a pair, $800-$1000 for a pair of shoes is utterly ridiculous at this stage in my life and debt journey. Forget the gods, I must be crazy if I venture into purchasing a pair of those in my current financial situation.
The End Result
I made the decision to buy myself a gift with the money given to me. I believe it’s insulting to the giver of the gift to pay your debt with it. I have had the gift giver ask me what I bought myself and if I even hint at saving it or paying debt, I receive a rather disappointed look.
Your turn to Debate!
I turn it to you dear reader, what would you do with cash birthday gifts? Pay off debt, or purchase something you’ve wanted for a long time? A gift should be something that you need and brings you some happiness. It could be argued that debt repayment makes you happy, so why not use the gift for debt?