#RAH its Payday: Spenders and Savers


Payday is fast approaching. When that e-payslip hits your inbox will you splash on something you really want, or will you save your money instead?

Most mainstream personal finan#RAH its Payday: Spenders and Savers
Payday is fast approaching. When that e-payslip hits your inbox will you splash on something you really want, or will you save your money instead?
Most mainstream personal finance advice is geared toward getting people to cut down their spending and boost their savings — and this is alright, I guess.
You might hear people say “If you don’t buy a coffee out, you’ll save £700 a year.” But, in the words of Grant Cardone, “You can save £700 every year for the next 50 years and you wont be rich. You’ll just be old.” You won’t go broke a couple pounds at a time.

Is it logic, fear or a bit of both that drive us towards keeping our money hidden away from the light. Whatever it is, it is understandable. After all, the formula for financial stability is to live within your means, never spend more than you earn and gradually stack and invest in a mortgage. Short-time sacrifices, long-term security and all that.

Well, financial stability is long shot from financial freedom. That’s what we’re aiming for Rice At Homies. We are constantly told that we need to save our money. But if we’re not sure what we’re saving for we are just hoarding money. We need to quantify our savings in order to qualify a little spending.

You can justify a bit of spending if:
• Your basic financial needs are covered — you are not currently living like Desperate Danni. Your monthly income is greater than your monthly expenses.
• You have an emergency fund of 3-6 months worth of expenses.
• You are investing in your future. You are you greatest investment! Spend a little time and money making yourself the best you that you can possibly be.
• You’re spending on “experiences” instead of just “things.”

Studies have shown that spending money on experiences like travel tends to make people happier, and for longer, than spending money on material things.

If you can’t tick all of these boxes then you might have to rethink your spending habits!
Until next time, keep your ears open, eyes peeled and pockets full.
T.

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