Description

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:

1. Paying for our living Expenses and Debt
2. Saving and Investing - I see it as paying myself
3. 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. 

1. Save in an Emergency Fund (At least have $1000)
2. Pay Debt (If I have any) especially high interest debt, credit card, auto loans etc
3. Invest in my retirement fund and brokerage account (This is you paying yourself and buying assets that will grow)
4. 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

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Cover Art: www.instagram.com/bydissirama/

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