Warning: Dare not do these 5 things With your Salary!
If you ever want to escape the rat race at some point in your life then you should never do these things with your hard-earned salary. As a salaried person you are fully aware that your day job forms a major part of your cash flow. I know you definitely want to be financially independent at some point in your life, so better manage your salary well. Without further ado, here are 5 pitfalls that you should avoid.
1.Spend your entire salary: How do you spend your entire salary without saving a cent? What if you lose your job tomorrow? Will you run back to your parents house just because you can’t pay rent for at least a couple of months as you look for another source of income? Always put aside at least 10% of your salary towards a savings account. Once this money reaches a certain threshold(say 6 times your monthly expenditure) then continue saving but with an investment in mind.
2.Don’t Gamble with your salary: In as much as some people make a fortune out of gambling it isn’t for everyone. Those who big in gambles are probably just lucky. Most people lose big on gambling and the stupid ones who gamble all their salaries end up being miserable. Some people will tell you to gamble only the money that you can lose but my advise would be to invest that money into cryptocurrencies. Penny cryptocurrencies to be more specific.
- Spending your salary before paying your debts: Pay your debts before spending your salary. It’s stressful to live with unpaid debts. Say it’s a loan you took, most probably you’ll get charged some accrued interest or have your credit history tarnished.
4.Spending your salary on luxury items: Why buy the latest trendy clothes if you aren’t Kanye West or Kim Kardashian? Why spend half of your entire salary on a Rolex watch and end up borrowing money to buy essentials like food. Don’t try to keep up with your friends’ lifestyles. Live within your means.
5.Invest in a too-good-to-be-true investment: Just like gambling there are investments that just sound too good to be true. Investments that promise more than 50% daily returns! I call such ponzi schemes. These guys are just there to eventually steal your money. Beware of such. Invest in things that have proven over time to bring in returns.
Did I leave anything out? Feel free to add or subtract in the comments section below.
These are very simple rules to remember but seems that many of us tend to forget very often. Thanks for the reminder :-) By the way, I sometimes write about money management in my blog . You can have a look here https://steemit.com/investing/@alketcecaj/learn-to-invest-your-money-and-make-a-living-out-of-it
Yea we do tend to forget once we receive our salaries. Will definitely check your blog