4 Important Ways to Use Your Money
Knowing how every dollar can be used is a great start to Financial Planning. And to make it super simple, there are really only 4 ways to use money:
- SPEND Cautiously. Whether it's keeping your lights on and phone connected, putting food on the table for your family, paying for all 6 of those vital streaming services, or buying a new vehicle, we all spend money every day. Our spending is a direct reflection of our personal priorities, and it's essential that we spend intentionally without losing sight of what's most important to us. A budget is the starting point to becoming aware of where our money is spent.
- SAVE Diligently. In order for us to avoid falling into unnecessary, and sometimes debilitating debt, it's necessary to save money for all kinds of things. These often include the unexpected emergencies life throws at us, the vacations we've always dreamed of, or even saving for a child or grandchild's future education. Saving certainly takes discipline and more than a little bit of delayed gratification, but it tends to alleviate the avoidable stress that comes with a lack of planning. Start with whatever you can and then build up for what you know is coming in the next several years.
- INVEST Wisely. Once you have a handle on your monthly spending and you've saved enough for your near-future needs and desires, now it's time to put your hard-earned money to work for you by investing. Most people start through an employer-sponsored retirement plan, a 401(k) for example. However, the possibilities for investment options is almost unlimited depending on your timeframe and risk appetite. Give us a call to schedule a time where we can work through your ideas and desires together and come up with a customized plan to meet your family's individual lifestyle and dreams.
- GIVE Generously. Lastly, and perhaps the most fun way you can use your money, is to give it away on purpose. Now that your monthly spending, saving, and investing needs have been addressed, anything leftover can be used to benefit others. It could be a regular tithe to a local church, a few bucks to the person standing on a street corner or to an organization that has been influential in your life. Whatever it is, big or small, it can truly brighten someone's day, and possibly even change their life for the better. As giving becomes more of a habit, creativity can flourish and it can become contagious with those around you. Some fun ideas are to add quarters to all the shopping carts at Aldi, make premade bags of essential items to give to any homeless person you see, or "Pay it Forward" in the coffee drive-thru.
Looking at this list of the 4 ways to use money, in which area have you seen personal “success”? Which area could you use some direction or accountability? We’re here to help you reach your personal financial goals. Schedule a call to start your financial plan today.
Disclosures: Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Gate City Advisors is not affiliated with Kestra IS or Kestra AS. www.KestraFinancial.com/disclosures
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