Spend On Things You Love Guilt Free
Money is a touchy subject and people refrain from talking about it in public. Because if you do there is a chance that the other person is better off. And now you will feel bad about your financials and decisions.
The urge to spend is so high that many people will come down to zero money in the checking account within days of salary being credited.
And saving something seems like an uphill battle. You try it and then some things turn up – then you break off the savings and boom you are back to square one.
When it is new year’s time, many people resolve to become fit by losing weight. And they go on the journey to buy gym memberships and new clothes. After about a week, they quit. The simple reason is that the motivation drops off. And the real reason is they are doing it all wrong – you lose more weight by counting calories and modifying your diet.
Similarly in the money matter, many people take the approach which they see many of their friends following.
And they get surprised that they are still on the same financial pain as before. It takes a different approach, less decisions and the continuous strive for more to bring in a fulfilling financial experience.
When you get your salary, a portion of your income should go to some recurring savings account. Such that you don’t have to make a decision every month. You may increase the amount later but start it with something you don’t mind.
Now your new salary is something which is received by you excluding the savings. Once you have built this up for a good amount of time, it is time to move on to investments.
Go and start a monthly investment plan for a low cost mutual fund. And boom, now a portion of your income will go to savings and investments. The remaining which comes to your account is something which you can spend on things you need and desire.
Taking the decision out of your hand is a critical thing to solving money related investment problem.
Now that you have covered this, you need to focus on your skills and look for opportunities to increase your income. So that you can invest more and spend more. Maybe do part time in weekends – something in which you can find fun too.
This way you will find yourself in a comfortable position and most of your financial problems will be sorted.
The next step is have dedicated sub-accounts for various expenses. For example, marriage, kids, unexpected bills, medicals.
Once you have good enough funds in all of them, you can live your life tension free. Because a good amount of money goes regularly in savings and investments. And a good enough amount is lying in the funds allocated for different reasons.
Go ahead and splurge as much as you like from your salary. There is no worry of what to do when this happens. Because it is already counted for in dedicated sub-savings account or the general savings account.
The more you sort your investment, the more happily you can splurge. Go ahead and shop guilt free.