It’s not easy to make money. But it’s also not easy to figure out what to do with it once your bank account fills up.
Should you spend on a new purchase? Save it? Invest in stocks or bonds?
These three tricks can help you make financial decisions:
#1: Know Yourself First
You may not know the ins and outs of personal finance, but you do know yourself. More importantly, you know what you want. Are you saving for a new house? Are you paying off your credit card debt? Are you eyeing index funds for a long-term return?
If you’re saving for a major purchase down the road, you’ll have to budget strictly in the short run. Pay off your debt first before making any dispensable purchases. Know your end goal before doing anything with your money.