“As companies continue to embrace hybrid work models, spending on the essential home office components can be pertinent to your productiveness and success,” Davis told Fox News Digital.
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“This can be items like a desk, a comfortable chair or a monitor to use for your WFH days, allowing you to use your money to make working more comfortable.”
It might be worth investing in dual-purpose supplies, such as headphones that can be used for both work and personal use, he said.
“As companies continue to embrace hybrid work models, spending on the essential home office components can be pertinent to your productiveness and success.” (iStock / iStock)
Professional wardrobe
Having a professional wardrobe such as versatile suits or dresses can boost your confidence and convey positive first impressions during interviews and in the workplace, said Davis.
Allocating some gift money toward a few classic and professional staples may be very smart.
For instance, he said Capital One 360 CDs offer a fixed rate and guaranteed returns that aren’t subject to market changes.
Start saving for your retirement early. Your 20s may not be the time to think about your golden years — but money experts say retirement planning should start when a person starts a first job.
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“Take advantage of an IRA or company-sponsored 401K to start building your retirement savings early and bring these habits into your payday routine,” said Davis.
Another use for gift money for the future is a Roth IRA to jumpstart retirement savings.
“A $1,000 investment made now will grow to more than $18,000 over the next 50 years, at a modest 6% average annual return,” said McBride with Bankrate.
What about the ‘split, spend and save’ idea?
The “split, spend, and save” approach is a practical way to manage and allocate your money. It ensures there’s an immediate balance between your needs and your wants as well as identifying your short- andl long-term goals, noted Davis with Capital One.
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Here are a few tips on how to implement this strategy.
Set clear priorities. It’s important to categorize your money into specific groups, which can help you organize and budget your finances to create a viable money path and plan.
“Finding the right balance sets you on a path toward financial empowerment and stability.” (iStock / iStock)
“When determining how you make this split, you’ll want to reflect on where you are in your savings journey and where you may need to save more,” Davis said.
Based on this, he said you can split your money — a common breakdown is 50% for savings, 30% for spending and 20% for investing — but this will likely vary depending on your individual goals and personal progress.
What to spend. Establish current priorities and necessary expenses first — like rent, groceries and bills.
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Once the essentials are covered, only then consider spending the remaining amount on the areas that can benefit you, such as work supplies, a professional wardrobe, or housing and transportation, Davis indicated.
Determine how much money you’d like to save toward your emergency fund.
