Five Things You Can Do With Money



Five Things You Can Do With Money

There are only five things you can do with money.

1.    Give it.

2.    Save it.

3.    Invest it.

4.    Lend it.

5.    Spend it. 

Notice where spending comes in that lineup: last. Spending should never be the first thing you do with your money. Because the proper management of money is specific and orderly, spending it first short-circuits the system with fiscal disorder and financial chaos.

People who have a spending habit that has gotten them into trouble need to make a plan, get out of debt and stop spending money they don’t have. Then when they are in complete control of their money, go ahead and start saving for specific needs or for a home.

But you first need a written plan—a budget. A written plan stands firm whether you’re on an emotional roller coaster or an even keel. Your attitude toward spending should be “no debt, no matter what!”

Your thoughts on this subject?  Your comments appreciated!

Content © Rich Brott, 2011

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Reader Comments

Thanks Rich for your posts. I love when people take something and lay it out clearly.

Another thing I say to people it to think of their spending in terms of time. The money they have in their hands can be directed towards debt (the past), bills (now), saving (short-term future) and giving (long-term future)….but not necessarily in that order. I ask: Where are you paying into?

Thanks for the posts!