Written by R. A. Stewart
Being strategic with your money will enable you to make the most of what you have and that means managing your money well; it also means prioritizing what you are going to do with your money.
Having clearly defined goals will enable you to do this but it takes a fair bit of discipline to stick to your plan.
If you are saving for a car then it means giving up stuff which does not add any value to your life. There are worse ways in which you can spend your discretionary dollar than on a vehicle. If you spend it on clubbing every weekend, then you will not have anything to show for the money you have frittered away. At least buying a car will add to your lifestyle.
Keeping pets can be very expensive and can cramp your lifestyle. The cost is not the only issue you have to deal with; if you are away on holiday then there is the issue of who is going to look after your cat or dog.
Then there are vet bills. Some folks are so attached to their cat or dog that they are prepared to spend $1,000 or more on vet bills. This is utter madness and can undermine a person’s financial well-being.
The questions which need to be asked are:
Is this purchase really necessary?
Will this purchase help me to achieve my financial goals?
Is this the best use of my money?
It is worth pointing out that there are some factors which affect your priorities. Some of them are your age, family responsibilities, your health, and your goals.
If you are aged in your sixties, then you are not going to have goals with a thirty-year timeline.
Another thing which should be mentioned is that whatever you are saving for should not be at the expense of your retirement fund. If you get into the habit of putting off retirement contributions after you have saved for whatever it is you are saving for then it will cost you when that time comes and it will surely do.
Investing helps build your financial literacy. If you are not getting involved in the share market, then you are not gaining investing experience which will help you make better decisions in the future. It is better to make mistakes when you are young and with no commitments because your lifestyle will not be impacted. Not so when you are older when you may have your own family or other commitments.
We all have a choice of how to use our discretionary spending money and by setting goals on where your money is going you will have something to show for your money. It is all matter of prioritising you’re spending.
About this article
The opinions expressed in this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog, website, or ebook.
Read my other articles at www.robertastewart.com
