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Money Smart: Ways to spend your savings wisely

The hard work paid off and you’ve earned every dollar. Here are KENS 5’s top five ways to spend your money wisely.

SAN ANTONIO — After years of budgeting and planning, you may be at a point in your life where you have some extra money. KENS 5 spoke with a financial advisor who recommended these top five options to spend your savings with intention.

1. Think ahead

“Instead of leaving your savings to the next generation when you pass away, think of some creative ways to use the money today. For example, taking a really nice family vacation with your children and your grandchildren,” said Karl Eggerss, senior wealth advisor and partner of Covenant. “You're essentially taking some of that inheritance and bringing it forward.”

2. Donate

“A lot of people give money to charities each year. One option is to actually give investments to charity. It could be appreciated stock, an appreciated mutual fund that's already gone up in value. The charity receives it, and you might receive a charitable deduction at the same time."

3. Future Generation

“Put money into a college saving plan and let it grow for years and years. There are many different types of plans and ways to do this. But it can also help you from a tax standpoint as well.”

4. Invest

“If you have a second home – it could be a ranch, it could be a lake house and the family's been enjoying it – you might consider putting that into a trust and having it be self-sustaining and have it pay for itself. That way, that particular investment, that particular fun, second place can be a multi-generational gift."

5. Spend money on yourself

“The last one, which is probably my favorite, is to simply spend it. You spend your whole life being a saver. It's very difficult to flip that switch and become a spender. But create that bucket list, and simply enjoy it."

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