Where would you spend your extra money? In the Resourceful Designer Community, we recently discussed the question, "what would you do if you had extra money to invest in yourself and your business?" There were many great ideas on how to use the extra money and, just as importantly, how not to use it. It was such a great conversation that I thought I would share my thoughts here on Resourceful Designer. Before I go any further, I must state that I am not a financial planner or financial advisor, nor do I play one on TV. In fact, I have absolutely no expertise when it comes to this stuff. As far as I know, experts who see this may tell you what I'm saying is completely the wrong approach. These are my thoughts on what I would do if I had extra money to invest in myself or my business. So here goes. Imagine you had extra money sitting around. Anywhere from a few hundred dollars to several thousand. I know, it’s a nice thought. But you never know. Maybe you had a favourable tax return. Or you inherit a sum of money. Maybe you won a cash prize in some lottery or draw. Perhaps you had an outstanding quarter and have money left over once all your monthly bills and expenses are paid off. Whatever the reason, you have extra money and try to figure something practical to do with it other than blowing it on a vacation or other luxury. No, you want to use that money as an investment of some sort. But what? This is the order of preference for how I would invest the money. Investing in your future. I believe the most important thing any business owner can do is invest in their future. That future could mean next year, or it could mean retirement in many years. The idea is to use the money to help you down the road. As a solopreneur, your income relies on your ability to work. In most cases, if you are unable to work, you don’t make any money. That’s why I believe padding your future is one of the most important investments you can make. This may mean putting money into a savings account to act as a three to six-month buffer in case things get tough and business slows down. Work in our field is never guaranteed, and even the best of us experiences lulls from time to time. This buffer can help tide you over and help cover your expenses until work picks up again. Or maybe an accident or illness will force you to take a medical leave. Having a buffer to get you through that period may mean the difference between staying afloat and being forced to close your business. And then there’s retirement to think of. Saving for retirement is something you should start doing as soon as possible, especially if you want to continue living the good life in your later years. The longer you wait, the harder it will be to save up. I don’t know about you, but as a creative person, it’s hard to think I’ll ever retire. I believe I will be creating and designing things until the day I die. But the fact is, one day I may not want to spend 8-10 hours a day in front of my computer anymore. And that means less money will be coming in. Not to mention that even though designers are like a good wine, we get better with age; some people may not want to hire a 65-year-old to design the brand for their hip new startup. These two reasons alone. For short absences such as dips in work or medical leave and retirement are why I believe investing in your future is the first thing you should do with your money. I know it’s hard when you have bills and debts to pay. But even a few dollars here and there will add up over time. If you do come into some extra money, this is where I suggest you invest it. In your future. Investing in your present. Next on my list is investing in your present. Investing in your present means putting money to use towards immediate self-improvement. Learn a new skill. Invest in is things such as tutorials, courses and programs to learn new skills or improve your existing skills. These may be design-related, or they may be business-related. There are many