The value of money is often underestimated. The impact it can have on your life is a great measure provided you use it the right way. Unless you do not know what to do with your money, you can either get richer or bankrupt all of a sudden. When you look at people who win lottery’s or get some of the inheritance, you will then notice the ones who make a good deal out of it and some who might have lost it all either gambling or choosing the wrong ways to spend it. You can avoid all that and consider these smart things to do with your precious money.
Gen Y Finances: 2017 could be most successful year in your life!
- Emergency Fund
Having an emergency fund will help you out in the long run. Get some of that money you have and pool it into an account and restrict yourself from using it. Make sure that you have made it a non-accessible account so that you will keep your hands away from it when you quickly look to withdraw some amount. An emergency fund comes in handy when you either have medical emergencies or need it for any kind of money issues that you or your family may come to deal with in the future.
- Clear that debt
If you have a debt, clear it. The first thing that you need to look at and take care of when you have money is getting off that debt from your chest. Having a debt free life needs to be your goal and you need to be there to make sure you live it that way. So, if you are making good money, allocate more on your EMI’s and be done with that debt which will eat you away slowly.
- Retirement Fund
Yes, it is long term and will be up for years and years together. But, the amount of money you would have saved up over the time will let you have a tension free retirement life and will allow you to make the most of what is left. All it needs is a certain amount that you save up every month and put it away and freeze it in such a way that you will be able to touch it only when the time comes.
- Make that purchase
If you have been longing for something you want for yourself since a long time, go ahead and make it. But, before you make it, you need to analyze the pros and cons and if it is going to burn a major hole in your pocket, then you need to focus on whether it is an essential or a want. Differentiating between your wants and needs will come into play here and make no mistakes when you weigh them out.
Yes, investments are the best thing that can happen to you. Choose the right area that you want to invest after you take a close look at the risks that are involved and then go ahead and make those investments. Keep in mind that it is better and safer if you make the investments in multiple places after splitting them up. Do not gather them all in one single investment channel and if the market crumbles down, you will be at a risk of losing it all.
- Spend on your friends
There is no point in saving it all up and not making efficient use of that money. Having fun is an integral part of life and friends are the core of it. So, show your friends how much they mean to you by taking care of the bill for a change. Money spent on loved ones, is never wasted.
- Take a trip with your family
Yet another integral part of life is family. Having a family and keeping it together by the edges is more important than any other aspect of your life. So, if you do have a family take, them on a surprise trip once you have enough and show them how much you love them and feel it reciprocated as well.
If you do have excess money that you do not need, lend some out to your friends who are having a hard time. They may be need it more than you know and your humble deed of lending some money will make you seem like a rescuer to them. So go ahead and be the one who puts in some light into their lives.
There are millions of people all around the world who tend to need money be it for survival or medical expenses. Such people have no one to support them and reach out to the general public seeking help. Go ahead and make someone’s life easier. However, making sure that they are legit and a background check or a little bit of proof will put you at peace. Even if you do not get any such supporting documents, go ahead and put in some faith in humanity.
Donate a portion of your money every month or year and keep it up as a habit. You will be able to make a huge difference to the way Non-Profits run and will get some of their well wishes as well in return. So, do not hesitate to pitch in some money and when you do, be generous.
Agreed that giving away money may not be on your list of ‘to-do’, but if you do have excess, it would be a great step on your behalf to helping mankind. Even if you do not have excess, a small and minor contribution to an orphanage or an old age home will make sure that the people there, receive a tad bit extra quality of care that they deserve. However, make your list of what you would want to do with your money and remember, finish the smartest ones while you can and the rest can be done when you grow big, financially.