If you’ve already made a bunch of mistakes with your money you could be paying for it. Maybe you need a small loan but are having trouble getting one because of bad credit. Maybe you have bills due and shot off notices coming in the mail, but no savings account to help you deal with it. Whether your money situation is good or bad, here is what you should be doing with your money.
You’re spending your money, you kind of have to if you want to live or have a life. What really matters is how you are spending it. If you are wasting your money on things that give you nothing to show for it then you aren’t spending it right.
Spend money on the stuff you need to be healthy and happy, but understand what happiness really is. A cluttered home full of stuff you never use but often find in the way will just bring you stress. Before you buy something and bring it into your home make an evaluation of it; will you use it and what purpose it serves are both things to consider.
It’s also smart to start a savings account. There are a lot of things that you can do with money in savings, the major one being that you will have some emergency money set to the side. Most money experts recommend that you have somewhere between three months and six months worth of income in your savings account.
You don’t have to only save money in an account made for savings. You can save cash in your own home, or save money specifically for something (like a college fund, a Christmas fund, or even a birthday fund), and you can also save money through investments (though poor investments could lose you money).
Investing money is something you have many choices in, from putting money into a 401(K) to buying stocks and bonds. You could even play the stock market.
If money investing is on your list of things you want to do (maybe to save toward your retirement fund), you may want to talk with an expert in the field. Even your accountant can give you some suggestions on the best ways to invest wisely.
Your money isn’t going to last forever, or it won’t if you don’t learn how to save some and spend wisely. Don’t waste money and learn the differences between the things you need in order to live and those items that are just wasteful wants.