You can never know enough about this thing that apparently makes the world go round. With this in mind, here are five facts you need to be aware of about money:
1. It’s Not All Yours
This is difficult to swallow but true. When you earn money, a percentage of it does not belong to you. Instead, it belongs to the government via tax.
How much you are taxed depends on how much you earn, plus a number of other factors. Depending on your country, you may have to pay taxes even if you move overseas. It’s complicated, so if finances aren’t your thing, get yourself a personal tax accountant to help. One thing we can tell you for sure is that if you don’t pay all the taxes you should be paying, you could end up fined, or worse, in jail.
2. Be Careful with What Is Yours
Many people spend any spare money they have on clothes, eating out, and treating themselves to entertainment and other non-essentials. There’s nothing wrong with using your disposable income, but before you spend it all, it could be worth investing at least some of it.
A rainy day fund, saving towards a big goal like a holiday, or even putting money into a retirement fund (13% of Americans aged 60 and over have no retirement savings) could be a really smart thing to do. Doing this protects your future, while what’s left can go toward enhancing your present.
3. Banks Aren’t Always the Best Option
These days, there are smarter ways to invest your money than just banking it. Some people swear by real estate investment; others opt to invest in stocks and shares via banking apps. Whilst there is often more risk involved in veering away from traditional savings accounts, in reality, if you’re willing to put a bit of time into educating yourself, the rewards can be much greater.
Just make sure you never risk more money than you’re willing or able to lose, and if you don’t understand the first thing about crypto or NFTs, leave them be. The learning curve is too steep, the risks are too high, and there are plenty of far safer and more lucrative options out there.
4. Giving Can Be as Rewarding As Spending
If you have some spare cash, giving to others can be incredibly rewarding and good for the soul. In fact, various studies have revealed that giving money to those in need genuinely makes us feel happier.
Whether you pay for the coffee of the person behind you or donate to an animal charity, consider giving some of your money away for priceless rewards in both how you enhance your mood and the life of another.
5. It Doesn’t Grow on Trees
Rather than seeing this as a negative reminder that we have to work for money, it could be seen as an opportunity for positivity. These days, there are so many opportunities to earn extra cash.
It’s a jobseeker’s market because of the global shortage of employees. Entrepreneurialism is easier than ever before because of the availability of online learning tools. Then there are all the remote job opportunities (both freelance and employed) that are cropping up every day. You can now work any time of the day, for any business, from any location in the world, for the amount of time you choose.
When you handle money right, it can be made, saved, protected, grown, and more. How will you make the most of your precious cash?