As Easy As 1-2-3 (Make>Save>Spend) to Better Manage Your Finances

Sometimes it may just take another person to remind you how easy it can be just to make the best of your finances. In this modern world, where consumption is such a desired final outcome, we are faced with an environment in which everything is invested into marketing to foster human consumptions. To avoid being caught up in such traps, please remind yourself that you live not just for a short-term enjoyment of materialistic things, but rather, a long-term enjoyment of well-planned savings for the future. Have fun and enjoy as you save.  

Here are the easy 3 steps of how to make the best of your finance:

1. Make money

2. Save money (pay yourself first)

3. Spend money

Remember it is as simple as those steps, however, these steps must be followed in order.  

1. Make —> 2. Save —-> 3. Spend 

The simple idea is, of course, you must make money first. Choose a job you like or can get for the meantime, make money from that, but learn to save a fraction of that amount towards yourself and your own bank’s savings account. The mistake most young adults make is, if they make $100, they look at it as $100 to spend. The reality of thing is, that’s not what you should see. The rule of thumb is, see that $100 as $10-20 for tax, about $40-50 available to spend, however a large chunk of what you net after taxes should be then allocated first towards a savings account, say, at lease $15-20.

I say, start challenging yourself to at lease save as much as the same amount you pay in taxes each paycheck!

Saving is also considered as "paying yourself first." As you invest in yourself to better who you are and to better what you do, any time and money invested towards those goals are well worth the cost.  

Always save towards a goal (don't just save to save), preparing for the future needs, paying off debt and such is a good way to build a good habit. It is very hard for beginning investors to lose, as they are not mentally prepared for the unfortunate outcome of losing money. Saving is investing in yourself, by acquiring new skills, so that you can succeed more as you know more.  Investing in ourselves makes us more valuable. Save to invest in assets. Invest passively in the S&P500 index via ETF funds for example.  

Once you follow these steps 1 and 2, then you can spend (as you want) as long as you are financially stable and disciplined. There is no better way to enjoy one’s spending without guilt than to have a good savings account to comfort your soul that you worked hard to have such a “pot of gold,” so it’s okay to indulge in some things you want as long as you are disciplined enough with your finances.

Watch my YouTube video around this vary topic: CLICK HERE