There are many things you can do with your money. Some of them are excellent, others should never be considered. I have identified four excellent things you can do with your money to help you reach your financial goals. Let’s take a look together at these great things you can do with your income!
Before We Begin
I should first mention that each of these things should be accomplished in near-equal or reasonable proportions. Focusing on one of these things at a time might be useful, but only in the scope of the big picture plan you should have in place. It might be helpful to try out Dave Ramsey’s 7 Baby Steps to help you accomplish each of these goals.
Be sure to also talk with a financial planner who can guide you through all four of these things you can do with your money. That’s very important, because you’ll be able to bounce questions off of them as you go.
4 Excellent Things You Can Do With Money
Alright. Here we go. Are you ready? Seems like we’ve heard these before somewhere . . . .
1. Give it.
I believe that giving money should be top priority for everyone, not just Christians. It puts money in perspective and allows us to experience the joy of giving to others. It helps the economy and changes lives.
But as Christians, we should also always keep in mind that it is pleasing to the Lord when we give. Giving is a trigger that reminds us we do not truly own anything we have – it’s all God’s in the first place!
The earth is the LORD’s, and everything in it, the world, and all who live in it.” – Psalm 24:1 NIV
2. Save it.
I’m a huge fan of saving money. In fact, I might save a little more than I really should. Here are a few tips everyone should follow when they are saving:
- Build an emergency fund of 3 to 6 months worth of expenses. In life, you’ll get rained on. Grab your umbrella and you can avoid the storm!
- Save for specific goals. Instead of calling everything an emergency, buy your next car or gizmo with cash! Save up money specifically in your budget for that purpose.
- Make sure not to save too much (like sometimes I do) and avoid other important things you should be doing with your money. Investing, giving, and spending are important too!
3. Invest it.
Investing is a powerful, powerful thing you can do with your money. Have you ever heard about compound interest? It’s magical. It’s like a money-making machine. All you have to do is learn how to invest and add several years of time. It’ll be worth the wait!
You might think that I’m only talking about investing in real estate or the stock market. While those things are great, you should also consider investing in an excellent college education. Education with a purpose can be one of the best investments you could ever make. Why? When you get out of school, you’ll be able to land a job that pays more money . . . and more income means you’ll accomplish more of these goals!
4. Spend it.
While you’re doing all these things, don’t forget to spend a little bit of your money! It’s important because it will refresh you and keep you going on your long term goals. Have some fun with money, but make sure it is reasonable fun!
If you’re not sure how much “fun money” you should start with, try looking at your historical spending. Was it reasonable? What would you change if you could? Make those changes! Start with a high amount of fun money, and wean yourself off of it over time. You’ll find the right balance for you and your family!
You can even earn a little bit of cash back on your spending if you know where to look. Last year my wife and I started a checking account with PerkStreet Financial, and found them to be a great extra source of income!
What are some other excellent things you can do with your money? Meet us in the comments and let us know!
Photo by Nurse_Carla