5 things people do with Money

Which one of the following financial category do you belong to?

There are many things people do with money, but here are five of the most common:

Spending: One of the primary things people do with money is to use it to buy things they want or need. This can include everyday expenses like food and housing, as well as non-essential items like entertainment or travel.

  Are you a spendthrift? Do you mindlessly spend on every thing that comes your way. You can get better at spending, by tracking your expenses in an excel sheet, and reflect on it on a daily basis. This habit will help you spend wisely in the future. 

 “Don’t tell me where your priorities are. Show me where you spend your money, and I’ll tell you what they are.” – James W. Frick

At Fortune Tuning, students track their finances on a daily basis, as part of the daily morning ritual. This habit has helped Ankur P Chaturvedi to identify, where he is spending the maximum money. After he started realizing it, he has made conscious decision not to spend too much on unwanted and unimportant areas, instead focus on areas of priority, while spending.

Saving: People also use money to save for the future, whether that’s for a short-term goal like a vacation or a long-term goal like retirement. This can involve putting money in a savings account, investing in stocks or bonds, or using other financial instruments to grow their savings over time.

In order to save efficiently, you should be able to save 20% of your income on a regular basis. This will help you save for a rainy day, and there is no need to worry for funds in case of emergency.

“Money is a terrible master but an excellent servant.” – P.T. Barnum

Investing: Investing is another way people use money, typically with the goal of growing their wealth over time. This can involve buying stocks or mutual funds, investing in real estate, or even starting their own business.

   Investing is a wise way, to multiply your money. By doing this, you are making money work for you. You are leveraging the power of money, and thus enjoying the benefits it reaps.

“If you don’t manage your money, your money will manage you.” – Dave Ramsey

Paying off debts: Many people use money to pay off debts, such as credit card balances, loans, or mortgages. By paying down debts, they can reduce their interest payments and improve their overall financial situation.

Money definitely helps in clearing all your liabilities, and ensure financial security. This is one of the basic requirements that money fulfills. 

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

Giving: Finally, people also use money to give to others, whether that’s through charitable donations, gifts to friends and family, or other forms of philanthropy. Giving can be a way to support causes they care about, help others in need, or simply share their good fortune with those around them.

Money plays a major role in giving back to the society. By contributing a certain percentage of your income for a fulfilling cause that you believe in, it serves the greater good of the society and the world at large.

“Money is a tool. Used properly it makes something beautiful; used wrong, it makes a mess!” – Bradley Vinson

Money can also be used for 

Travel: Money can be used to pay for travel expenses, such as airfare, hotels, and activities.

Enjoy leisure activities: Money can be used to pay for hobbies and leisure activities, such as sports, concerts, and movies.

Start or grow a business: Money can be used to start a new business or grow an existing one, such as by hiring employees, purchasing inventory, or investing in marketing.

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