write any four suggestions for your friend to stay in your budget and spend your pocket money
Answers
1. Track Your Finances
Before you can start figuring out how to spend money more wisely, you first need to understand where your money is going. Make a budget and track both your income and your expenses. Once you know where your money is going, you can start looking for opportunities where it could be better spent.
2. Think About the Long-Term Benefits and Drawbacks of Purchases
Far too many purchases are impulse decisions. While this is fine when it’s a $1 chocolate bar at the supermarket, it becomes a problem for larger purchases. Before you buy something, think about how it will affect you in the future.
How long is it going to last? Is it going to put you in debt? Is the value you will get out of it over its lifetime worth the cost?
These are questions you can use to determine if something is really worth buying.
3. Only Put Money on Your Credit Card if You Can Afford to Pay it off Each Month
Credit cards aren’t inherently a hindrance on your finances. After all, they are convenient and many cards offer cash back on your purchases.
RELATED POSTS
Should You Re-Evaluate Your Investments?
If you invest the Rule #1 way, you have probably made some pretty incredible investments.…
How to Build Generational Wealth and Keep it!
You have likely thought about generational wealth whether you know it or not. It means…
InvestED: The Rule #1 Podcast Hits 7 Million Listens!
From stock market basics, to learning how to invest money on your own, to your…
However, you should only spend money on your credit card if you are able to fully pay it off at the end of the month.
If you pay off your credit card balance each month, you won’t incur any interest charges and it will essentially be the same as paying cash.
If you don’t pay off your balance each month, though, the interest accrued can quickly spiral out of control.
4. Stop Trying to Impress Other People
The average person spends far too much money merely trying to maintain an image. From fancy cars to brand-name clothing, much of what we buy has more to do with impressing others than it does to do with purchasing something that we actually want and enjoy.
However, “Keeping Up With the Joneses” is an expensive and unnecessary pursuit. Buy the things that you yourself enjoy and don’t fall prey to the feeling that you have to spend money in order to impress other people.