If you’ve got a little money stashed away, you’re probably wondering how to use it wisely. Of course, you could go on a wild shopping spree, or splash it on a weekend away. But, what about the smart choices? What’s the best way to use that money to set yourself up for the future?
Whether you’ve got a big lump sum, or just wondering what to do with the leftovers of your paycheck, we’ve got some answers. Her are six smart things every man should do with his money.
1. Pay down his debt – We live in a debt-fueled society. The average credit card debt in the USA is $15,000. That’s a staggering amount of credit especially when interest rates are often as high as 15%. If you’ve got a lot of money on your credit card, make it your priority to pay it off. The same goes for an outstanding overdraft balance or personal loans. Debt is holding you back from financial freedom. The absolute first thing you should do is clear your lending history and start with a clean slate.
2. Invest in shares – If you have surplus income, perhaps it’s time to start filtering some of it into an investment account. Many look at the stock market and associate it with risk and danger. While some professional brokers play a dangerous game, a sensible investment strategy is a risk-free option. Spread your investments and stick to a long-term growth plan. Investing is all about getting rich slowly, not quick wins. Speak to a financial advisor for more information on this.
3. Invest in himself – Every self-made man has taken the decision to invest in himself. Whether it’s a business idea or a tailored suit for the big interview, investing in your future is essential. Give yourself the chance to progress and put your money where your mouth is. Every entrepreneur started their small business by investing in themselves. Follow their lead and give yourself every opportunity to excel.
4. Put money in a foreign holding account – Currency exchange is a tricky business. Global markets fluctuate, and you can lose out if you exchange at the wrong time. If you travel regularly, keep a lump sum in a foreign holding account. That way, you can withdraw your currency when the price is in your favour, rather than taking the exchange rate on your day of travel. You can take this one step further and look into Forex trading. Forex trading involves exchanging currency at the optimal moment to increase your profit.
5. Retirement plan – Studies show that most adults don’t understand the full cost involved with retirement. You can never start too early, so set up your first IRA account. The earlier you start, the less of a burden it will be.
6. Treat himself – Lastly, don’t forget to treat yourself. Don’t be the guy that hoards his money and keeps it stashed away. You can’t take it with you! Sure, you can make smart choices and plan for the future. But, you deserve a treat every now and then.
It’s time to get smart with your money. Which of these tips could you integrate into your life right now?