Blowing it just as we get it.
One thing I noticed growing up as a kid watching the adults around, and later my coworkers, as soon as the payday check hits, it is spent.
Whether it is the mall, the grocery store, the fast food joint next door, or the strip club, we all walk in and say, TAKE MY MONEY . No matter the price, the classier the store, the more expensive the merchandise, the more we are attracted to buy, buy, buy. Consumerism seems to be our default. How many times have you seen a person buy a pair of sneakers, take a loan out for a fancy car, buy drinks for everyone at the bar on payday, only to starve for the rest of the month? We think, what do I need to buy before anything else. Then, if anything is left, we might maybe save it.
A small change, much better results
One thing I have learnt from reading several money management books and self empowerment titles, a change in paradigm is required.
First SAVE
First on the list, is save first, spend later. Some people suggest, 10% of your salary, others go up to 30%. All advise that the primary thought after getting your salary is save, save, save. Whether you put in the bank, in your private vault or under your bed, a small portion of your salary needs to be set aside every month. This always comes in handy for rainy days, such as medical emergencies, an impromptu expenses, or even, hopefully a great investment opportunity. About 3 months worth of salary should be set aside, a year would be better. Think to yourself, how many chances have I missed out on because I spent my money before I could use it to it's best use. SAVE FIRST.
Next Invest
Saving is great, but inflation is a nightmare. Even if you place your money in a CD, the best you can hope for currently 1.79% annually. The federal inflation rate is 3%. Therefore, the value of your money decreases over time. What do you do then? Invest, invest, invest. While not absolutely guaranteed, historically, investments are what caused the excruciating increasing wealth gap, not to mention creating several millionaires especially in the tech industry. Make your choice, you can buy;
*Stocks
*Bonds
*Real Estate
*Commodities (Corn, Rice, Gold, Silver, Oil)
*Crytocurrency (Bitcoin, Ethereum, Steem, etc)
Of course because of the increased return, they come with varying increased risk. You have to decide your risk/reward capacity. Keep in mind, the higher the reward, the higher the risk. Anyone in crytocurrency knows very will how a small initial investment can return huge rewards. After all, bitcoin was less than $1 once. What do you spend your dollars on? INVEST BEFORE YOU SPEND.
Hook up your Knowledge Base and Skill Sets
Invest in yourself. You can only grow as much as what you can offer to world around you. So, spend some of that money improving you. Learn a new skill or improve on an old one, and don't be cheap. Learn from the best, so you can be the best. You want to learn how bake, paint, draw, sell products online, take a course from someone who has done it and has been successful. Your goal should always be to be overqualified for your position. Always be as skilled as the person above you or higher. You never know when the opportunity will present itself for you to step up. Luck is only luck to those who are prepared.
Smarter Spending Choices - Budgeting
Do you really need the latest fashion, the coolest car, the biggest house? No, you don't. But hey, if that is your dream, plan for it. After the first three steps, arrange the rest of you money in such a way to afford those things. After all, by following step 3, , you should be earning more than when you started anyway. Nonetheless, remember everything has an opportunity cost, use your money like a weapon, spend it wisely. Spend with the knowledge of what you have given up to buy what you want today. Equally important is a budget, know where you spent it, why you spent and how much you spent.
In conclusion, money is not just meant to be spent, but put to work. No matter how little you have or earn, if used wisely, you can achieve all things you have always wanted.