So money can be complicated. OR rather we can make money a lot more complicated than it needs to be. We add so many layers to the very basic understanding of how to use our money and make it work for our benefits. In this episode, I break down exactly how to I view money that I make. Whether it be from a paycheck or a gift that I receive or a stimulus check. Whatever money I get, I think through this process to determine how to use that money.
Money we spend falls into 3 different categories:
Paying for our living Expenses and Debt
Saving and Investing - I see it as paying myself
Spending on frivolous things and experiences
If you really think about it, every single thing you spend money on falls into one of these three categories.
So what and how do I spend my money, I use the process below to determine where I can spend my money. Before even getting to this point, I do a budget to see the amount I need for my bills and expenditures. After this I run through this list for the leftover and determine where it will be used.
Save in an Emergency Fund (At least have $1000)
Pay Debt (If I have any) especially high interest debt, credit card, auto loans etc
Invest in my retirement fund and brokerage account (This is you paying yourself and buying assets that will grow)
Use the leftover for whatever I want this is discretionary spending so eating out or buying a new phone, laptop, shoes, clothes etc.
If you have questions email me at kelechi@ramblingmindshow.com
Find me on all the socials below:
www.instagram.com/kelechiwuaba/
youtube.com/leechimane
twitter.com/kelechiwuaba
Join Robinhood and Get a Free Stock: join.robinhood.com/kelechi15
Join M1 Finance and get $10: https://m1.finance/qdcaTAIl-bqC
Morning Brew Business Newsletter: morningbrew.com/daily/r/?kid=f68225
Cover Art: www.instagram.com/bydissirama/
--- Send in a voice message: https://anchor.fm/ramblingmind/message
Let's Make Money Simple