Let’s be frank with ourselves – the process of earning money is pretty tedious, whether you are a business owner or a 9-to-5 job-goer. Hence, it’s quite obvious that you’ll want to cut back on your expenses and think to spend your money properly to save something for the future.
However, no matter how much we try, we still end up spending on something that we shouldn’t. For example, many of us tend to subscribe to Netflix or Amazon Prime to watch movies or TV series. It’s, in a way, a waste of money, as you could always download the same films from thepiratebay for free.
So, how should you spend your money?
In this article, we have described some of the best and worst ways to expand your monthly income. Make sure to read till the end and, of course, don’t forget to let us know your thoughts in the comment section below.
The Best Ways To Spend Your Money
Honestly, everyone has their own definition of “good.” Therefore, offering suggestions regarding where you should spend your money was a little tricky for us. Nonetheless, we did come up with a few general bits of advice for that anyways. Hopefully, you’ll agree with us.
Whether it’s about learning something new or looking for a daring escapade from reality – you can never go wrong with books. Besides, reading also improves your overall level of concentration and the ability to focus on your work.
What Should You Do: Pick a topic that you want to explore, find an apt book, and buy it. Repeat the process only when you’ve completed reading the material.
2. Something That You Use Regularly
We believe that if you use a product or a tool regularly, you must buy the best version of the same. Well… at least, as much as you can afford. For example, if you mostly work while sitting on a chair, make sure to buy a comfortable one. Otherwise, it may affect your health.
What Should You Do: Take something that you use regularly and check if it has all the features you need. If it doesn’t, make sure to buy a better version of the same.
3. Job Training
Almost every professional field requires a specific skill set. Hence, if you’re working somewhere and want to improve your efficiency, spending money on the job training can be a decent deal. It will help you grow as an individual as well as in your professional life.
What Should You Do: If you’re only starting out, make sure to learn the beginner-level skills first. Move on to the advanced-level ones when you are more experienced in your field.
The Worst Ways To Spend Your Money
Spending on something unnecessary is probably the most common yet worst way to expend your budget. It can range from buying a brand new phone when you already have one to purchase branded products.
1. Refinancing Your House Often
The interest rates have slashed almost to 0% in recent years. Therefore, now, it’s definitely an excellent time to refinance your home at a lower rate. However, don’t do it too frequently, as it comes with a wide array of loan fees that prompts you to spend more.
2. Making Minimum Payments For Your Credit Card
If you can afford larger payments or pay off your credit card balances in total – we’d suggest you do it. By carrying the same amount of compensation from one month to another, you will end up spending your money at a higher interest. It won’t be ideal for your budget plan.
3. New Cars
Buying new cars is a hobby that most people can’t afford. Hence, we would ask you to steer clear of the trap as well. Instead, you can buy a second-hand or used one for your purpose and take proper care of it. It will last forever and serve your purpose efficiently as well.
When it comes to saving your budget, following the 50/30/20 plan would be ideal for you.
However, that’s not where your job ends, though.
Aside from that, you must avoid spending your money on unnecessary prospects too. We know we have named only a few in our article, but we hope you understand what we’re hinting at.
So, be very careful and start saving your money for the future from now on!