Let’s review the most basic things you can do with your money!
When you simplify your spending habits down to the most basic skills, you end up with three things: you can spend money, save money and give money. Let’s break down what each skill means for you, starting with spending money.
Spending money can be really fun! It can also be a slippery slope if not closely watched. It is oftentimes the little things we throw in our cart, either physically or online, that can threaten our budgets. A great practice is to double and triple-check what exactly is in our carts and if we need everything we added. This is not to say that spending a little extra money is a bad thing.
Learning to enjoy spending money is an important skill to have along with the ability of self-restraint when needed for your spending habits. In the long run, spending money wisely and responsibly is a necessary life skill.
Saving is by far the most difficult money skill to practice. There are more aspects to saving than just stowing away money in banking accounts or under your mattress. Your savings fund can give you peace of mind, both for unexpected expenses and future expenses you have planned for. You never know when there might be an emergency you need cash for, like vehicle repairs, health issues, or another surprise life event. Saving for future costs should also be part of your saving strategy. Maybe you want to make a healthy down payment on a home, pay for your children’s education, and pay for other large purchases such as a vehicle or vacation. The best way to save money is to establish and stick to a written budget!
Giving money can be the most rewarding of the three money skills. It also requires that you have been successful at saving first. Whether you give money to a religious organization, charity, or another non-profit, there are many benefits to doing so. The primary benefit is that you are helping others who are in need. Even just a few dollars could result in multiple meals for a child, much-needed medical attention or improved education.
Sharing your wealth can bring more meaning into your life. If you give to an IRS-approved charity, you can write off donations on your tax return. Giving money is a great way to give back if you are financially able and an easy way to lower your taxes!*
Mayo Employees Federal Credit Union makes giving easy and has partnered with NetGiver, a charitable giving app that makes supporting your favorite nonprofits safe, simple and secure.
If you have any questions about how to wisely spend, save or give money, don’t hesitate to reach out to us. Our Financial Wellness Counselor is available to help you make the most of your money.
*Please consult with a tax advisor for additional information.