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This Is What Everyone Need To Do With Their Money ASAP - YouTube
Channel: Insight Booth
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Settled in a job or business venture
that now earns you a tidy income.
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Have a home, car, and everything
you need to live a decent life.
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And, you manage to save a small
part of your salary every month.
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What next?
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Weâre mostly groomed to study
hard to land a great career.
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But once youâve accomplished that,
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nobody tells you what to do with
the money you have coming in.
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Now, if thereâs something
the pandemic has taught us
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is that life can turn
upside down at any moment.
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And, you better be prepared
financially when it does.
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Lucky for you,
todayâs video is about just that -
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what you should start doing
with your money immediately.
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So, settle in as we give
you a couple of great ideas.
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As we dive into the topic,
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quickly join our growing community
by subscribing to the channel
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and turning on notifications to know each
time we share new inspiring insights.
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Like the video, too,
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to help the YouTube algorithm get
these tips out to other people
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who might need them.
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1. Bring Down Your Spending
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The first thing you should
definitely do with your money
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is spending it more wisely.
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Not just now,
when economic times are hard,
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and inflation is shooting
through the roof.
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Conscious spending
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is one of the most rewarding habits
you can cultivate in your life.
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Saving $100 extra this month
might not seem like much.
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But, keep at it for five years.
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Better yet, imagine earning compounding
interest on it for that time.
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A big deal now, right?
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Regardless of income levels,
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most people can do fine with
toning down the spending a little.
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In fact, if you donât already
strictly monitor your spending,
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you most likely waste money on
things you donât really need.
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So, start by auditing your spending and
gradually cut down on unnecessary expenses.
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That will add more money to do
everything else we will cover here.
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2. Start Building an Emergency Fund
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According to data from
Pew Research Center,
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about 9.6 million US workers
between the ages of 16 to 64
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lost their jobs during
the pandemic in 2020.
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In the EU, about 2.6 million employees
lost their jobs in the same period.
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Now, imagine being one of the more than 12
million people whose jobs abruptly ended,
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with savings that can only
push you a month or less.
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An emergency fund is money you
keep aside for these situations.
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You may get retrenched,
ill and unable to work,
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or your company may shut
down without notice.
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With a fund,
you can shield yourself for some time
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before you figure out your next move.
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But how much is enough?
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You want to target about three to six
months of your total living expenses.
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And to shield it from inflation,
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make sure you keep your fund
in a high yield savings account
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or if youâre into crypto, stablecoins.
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Pay Off Any Expensive Debt You May Have
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In todayâs world,
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where getting credit is quite simple,
personal debt can easily get out of hand.
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Now, having debt is normal.
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In fact, most people get out
of college with massive debt
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and then add a mortgage, a car loan,
and a credit card on top of that.
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Even the rich usually have debt.
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However, debt comes with fees.
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And the longer you take to pay it off,
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the deeper youâre going to dig into
your pockets to foot the interest.
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So, you should always have
a debt repayment plan.
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Most importantly, prioritize to paying
off high-interest debt as fast as possible
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before you can think about
investing your money.
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4. Start Contributing
to Your Retirement Plan
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Once you have an emergency fund and
have paid off high-interest debt,
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itâs time to direct your
money towards your retirement.
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Now, if youâre in your 20s or 30s,
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saving for retirement right now
may not seem like a priority.
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After all, shouldnât you be focusing
on other, more pressing goals?
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Well, itâs not too early to start
saving for retirement for two reasons.
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One, youâll have more time
to build a sizeable nest egg.
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Two, youâll enjoy the magic
that is compound interest.
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You earn interest on your
interest over and over again.
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So, if someone were to start
investing for retirement
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with the same amount as you
did but a few years later,
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they can never keep up with you.
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Start with your employerâs 401(k) match.
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Then, you can get a Roth IRA as well.
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5. Save Towards Your Financial Goals
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Another wise thing you
can do with your money
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is to save for and start
pursuing your purchase goals.
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Thereâs always that one- or a couple-
thing you want to do when you have money.
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It could be buying a new,
family-sized car, renovating your home,
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buying a vacation home,
or even starting a side hustle.
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Seeing these goals through starts by
putting the first installment aside.
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So, save for your goals, and once you
have enough to start, pursue them.
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6. Invest in Self-Improvement
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Youâve probably heard someone say the best
investment you can make is in yourself.
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âBut how do I invest in
yourself?â you may ask.
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Investing in oneself is about
gaining new knowledge/skills
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or improving on whatever you have already.
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It could be furthering your education
by pursuing a higher degree,
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taking short courses to acquire specific
skills, or even attending a conference.
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Self-improvement can be buying or renting
educational material for your own reading.
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For instance,
a book on personal finance and investing
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can teach you money value you never knew
of and help you make your first investment.
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The basis of self-improvement
is continually learning
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and being better than your past self.
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Remember, your mind is a muscle,
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and muscles need to be exercised
often to function optimally.
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Now, what are you doing
something to improve yourself?
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Share your insights with the Insight
Booth community by commenting below.
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While at it, hit the thumbs up button!
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7. Get Adequate Insurance
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Accidents can happen anywhere at any time.
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Not just on the road.
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They can even happen at work.
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In fact, data from the US Bureau of Labor
Statistics found that as of November 2020,
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2.8 in 100 workers were
injured at their workplace.
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You or your loved one can also fall ill
unexpectedly and require medical attention.
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Your home can get destroyed by a storm.
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The sheer number of unexpected events
that can happen is also inexhaustible.
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So, it is only right to prepare
for them by insuring yourself.
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If you have some extra money,
take all the necessary insurance.
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Not just what is required by law,
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but also insurance to safeguard your home,
business, and lifestyle.
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Remember, most people who
seem financially comfortable
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are usually one illness or
accident away from poverty.
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8. Invest in Passive Income Streams
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If youâre yet to consider adding
passive work to your income streams,
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youâre missing out on a chance
to grow your money exponentially.
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So,
what exactly is considered passive income?
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Passive income is any gig
or venture you can start now
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that can run mostly on
its own in the future.
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So, you put in a lot of effort initially,
and it pays off later.
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The best thing about passive income
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is that you donât have to stop
what youâre currently doing.
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Instead, you add it to supplement
what youâre already doing,
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whether a job or business.
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Now, what are some of the best
passive income ideas you could try?
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You can explore several things,
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including self-publishing,
selling online courses, blogging,
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YouTube content creation, drop shipping,
photography, and so much more.
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Start by thinking about
your interests and hobbies
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to see if there is
something you can start now
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that will eventually earn you money
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even when youâre not actively
putting effort into it.
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9. Buy Long-Term Investments
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What is the surest way to wealth?
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The majority of high-net individuals admit
to making their biggest investment gains
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from a long-term buy and hold strategy.
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With this investing style,
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you buy stocks in good companies
and hold them for a long time.
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Following the advice of probably the
most successful investor of all time,
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billionaire Warren Buffet, buy good
companies and stick it out over time.
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Do not worry about market
short-term market fluctuations
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because they will do well in 10,
20, or 30 years from now.
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Conversely, the surest way to poverty
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is putting your money in
âget rich quickâ schemes.
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If someone promises to double
or triple your money in days,
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weeks, or even a few months, think twice,
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as there is likely a huge risk involved
that they are not telling you about.
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When investing,
be wise, and more importantly, patient.
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10. Automate Your Finances
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Now that you basically have a blueprint
of what to do with your money,
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hereâs the last crucial step.
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Automate.
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That is to set up automatic bill
payments and investment deductions
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so that you donât have to do it manually.
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Automation is one of the best ways
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to ensure youâre on track
with your financial goals.
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Itâs also one of the best ways
to keep your spending in check
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as deductions are made as soon
as money hits your account.
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And as a bonus, you save yourself the
mental effort of allocating your finances
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every time your paycheck comes in.
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Over to you;
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what have you learned about money that
has changed your life for the better?
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Share your experience with
us in the comments below.
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And, if you picked up some
valuable tips from todayâs video,
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make sure you also give it a thumbs
up and share it on your platforms.
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We upload new, insightful personal
finance videos like this every week,
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so if you want to make
better money decisions,
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donât miss the others we
have lined up for you.
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Subscribe and turn on
notifications to stay informed.
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With that, we conclude todayâs video.
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Catch you in the next one!
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