FSM Media

by Dianna Ranere

How Should You Spend Your Money?


There’s a lot of money out there in the world, and we all wish that we could have more of it in our bank account. However, while it’s possible to achieve this goal by living a frugal lifestyle, it’s not recommended, at least not as a long-term goal. If you want to improve your life (and even your financial situation), then you’ll need to spend your money. The trick is to spend it in the right areas. In this blog, we’ll take a look at a few useful places to put your money, which will ultimately lead you towards a healthy financial landscape.

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Get Your House In Order

If you’re going to achieve all that you can achieve in this world, then it’s important that you’ve got a solid base. Your home is where you relax, unwind, and create memories — it’ll be the most important place on earth for you. As such, it’s always recommended to spend your money on improving your home. This makes more sense if you own your property since by investing in your house, you’ll be pushing the value in the right direction. But even if you’re renting, it can be worthwhile (just don’t spend your money on improving the infrastructure of the home; we mean that you should make the space generally more pleasant). 

 

The Essentials of Life 

A lot of people spend their money on frivolous items. While that’s OK from time to time, it should at least be recognized for what it is — a generally wasted expense. What isn’t a wasted expense is spending money on the essentials of life. Take food, for example. Many try to keep their shopping bill as low as possible. While there’s nothing wrong with that, it’s important that you’re buying quality ingredients. Eating well is one of the best things you can do for your health and overall well-being. So look at spending less money on things that’ll bring you down (such as alcohol), and more on things that’ll pick you up (like quality ingredients). 

 

Invest In Yourself

If you’re going to spend money, then you may as well know that it’ll ultimately benefit you in some way. There are plenty of opportunities to spend money on frivolous expenditures that line someone else’s pockets. But it’s much better to line your own pockets. How do you do this with your own money? By investing in yourself. For example, by spending money on a course that’ll make you eligible for the higher-paying jobs. No-one else is going to invest in yourself, and especially not if you haven’t first invested in yourself. It makes sense to spend even a relatively large sum of money on a course, if you know that one day it’ll come back to you many times over in the form of a bigger salary.

 

Put Your Money To Work

If you have some extra money in your bank account, then you should look at putting it to work. It’s all good and well just having it in your bank account, but it’s much better to see if you can use your cash to make even more money. One of the best ways to do this is to begin investing. You can begin by trading penny stocks or forex, and see where it leads. Of course, investing your money isn’t something you should do on a whim. Before starting, look at how to start trading penny stocks or forex, and take it from there. You might just find that you’ve got a talent for investing, and that you’re able to develop long-term financial security. 

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Pay Off Your Debt

Most people have debt of one kind or another. There’s good debt and bad debt. A low-interest loan that you use to improve your home is an example of good debt. Expensive credit card debt that you used to go shopping is an example of bad debt. Most people find that their debt is manageable. However, even in those cases, it’s usually a good idea to prioritize paying the debt off. If you have a debt that you’re paying a lot of interest for the privilege of having, then focus on getting rid of that debt ASAP. It may be useful to look at transferring the debt to another interest-free credit card, but eventually, you’ll want to break the cycle and live debt free. It’s difficult, but it’s possible!

 

Safety Nets 

Sometimes, the best move for your money is…to not spend it at all. It’s a good idea to develop a safety net of cash. You never know what’s going to happen in the future. To prevent too many complications from happening if things go wrong, put your money into an emergency fund. You won’t touch it until it’s needed. It’ll give you peace of mind that you can weather any storms that come your way in the future. 

 

Spend It On Others 

When it comes to spending money, most people think of their own self-interests. They think about what they can get with their money. There’s nothing wrong with this — indeed, it’s what we’re encouraged to do. However, there is another option available: spending money on other people. Studies have shown that humans draw more satisfaction from giving than they do from receiving. Is there a local charity that needs some financial support? What about international charities? Sometimes, it doesn’t even have to be for a charity. You could just spend your money on a random act of kindness. 

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Gift Yourself 

Finally, a bold suggestion: do something nice for yourself, especially if you’re one of those people that always puts others before yourself. If you’re in a good financial moment, then think if there’s something that you really want. You don’t always have to feel guilty about spending money. It’s when things get out of hand, and you can’t stop spending, that you should begin to worry. But the odd little treat for yourself? That’s entirely justified, especially if you know you’ve worked hard for your money.