6 Places You Should Be Spending Your Money.
So you got a fresh check of monthly income and you are happy about it. But at the same time, you are concern about how it is gonna last whole month. May be You are a bit worry where you should spend your money efficiently.
If you are one of those who don’t have any idea about efficiently spending your money in order to have greater returns. You are in the right place, in this article we are going to provide you some basic ideas of how you can spend your money.
Here are the 6 Places you should consider spending your Money
You surely don’t want to face a financial crisis in your 60s. So it should be your first and foremost priority to start saving for retirement. Retirement planning is mandatory for all those who want a financially stable life in their old age.
It is a lifelong process and the earlier you start the better for you. So the first thing you should be doing with your money is to keep aside a certain amount of money as a retirement fund.
How much you should save for retirement?
Well, it’s totally up to you but if you want, we can give you an example of saving for retirement according to your age, If you are starting at:-
- 25 years of age – Save 15% of your annual income
- 30 years of age – Save 20% of your annual income
- 40 years of age – Save 25-30% of your annual income
After putting a certain amount for retirement, it’s time to fulfill your basic necessities. Household things are absolutely necessary to live, from house to live, food to eat, to clothes to wear. These things are very basic and we can’t live without them.
We make a monthly budget of our day to day expenses, and a big proportion of our income is spent on these basics. But still, we have to differentiate between our needs and wants in order to avoid unnecessary spending. We have differentiated it for you
- Concert Ticket
- Latest Gadgets
The Emergency funds are as important as retirement funds. Emergency never came knocking down your doors and asking your permission to enter your life. It can happen with anybody at any time.
An emergency fund is an amount that is kept aside to cover and deal with unexpected crises. From a medical emergency to a sudden repair of a car, emergency funds can help you tackling down the situation without affecting your financial situation. All you need to do is to put some money in your emergency fund every month.
Debt can be very cruel and even be more when you have a shaky financial situation. The majority of people across the globe are under some sort of debt to pay. Paying your debt can surely help in improving your financial condition.
Spending some part of your monthly income in paying off your debt is a great idea to get rid of ever climbing high-interest rate of debt. Debt relief is certainly the best feeling for any working individual.
You can also check out our article on ” 10 Easy Ways to Pay your debt fast“.You will find 10 amazing ways to deal with your debt and how to pay off it really fast.
Here we are not talking about the emergency fund or retirement fund. Savings is another area where you should be spending your money. Here we are basically talking about saving 6-12 months of expenses.
Jobs are not constant, you can lose it at any time in a blink of eyes. Having expenses up to one year not only supports your family’s basic needs but also provides you a financial cushion until you get another job.
Keep some of your income aside as savings which can save you from any upcoming financial problems.
Investing your money is a good idea if you want to grow your money fast and safe. Investing in a great source of passive income and can generate life long cash flow. You can start by investing a small amount of money.
If you are interested in the idea of investing then you should try investing your money in your preferable field. Be it Real Estate, Stock Market, or bonds you can invest money in any of these.
THE BOTTOM LINE
See, you are the master of your money. It’s up to you how and where you should spend your money. If you are utilizing your money in a better way you can become better with it and if you not, be ready to struggle financially. We advise you to use your money in your favor and using the above techniques can surely help you to achieve your financial goals to some extent.