Published On: Thu, Mar 2nd, 2017

Stop Saving Money for No Reason and Plan Ahead Instead

You’ve probably heard of the old saying that you have to spend money in order to make money. It’s one of the truths of the world and, if ignored, can seriously harm the chances of you living a comfortable life. For instance, you can’t start a business that makes a lot of money if you don’t invest into assets, services and employees to make it happen. In other words, you can’t expect to continuously save money in order to gain wealth. At some point in time, you’re going to need to formulate a plan to turn that money you have into even more money.

 

Even if you are currently happy with your income, it’s not going to last forever. Unless you have a business that essentially runs itself and provides a product that will never go out of style, you’re going to need to update yourself at some point. Saving money can be a good practice if you’re not very good at managing your financial situation, but we all need to think of the bigger picture.

 

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Planning for the future

First, let’s get this out of the way first. If you want to plan for the future, you do it by writing up a strategy of your hopes and dreams, not by saving money. If you’re saving money for no reason, then that money could be better spent improving your current life. You don’t have to be frugal forever. For example, if you’re currently in your 30s and you’re saving money by eating cheap food all of the time or refusing to go out with your friends because you want to save money, then ask yourself if you can really sustain that type of lifestyle while saving money for no reason other than to have a higher number on your bank account.

 

For instance, one of the reasons to actually spend money is to get a good credit rating. If you go by the mantra of planning instead of saving, then you’re probably thinking about having a house in the future. Sadly, you won’t get very far if you don’t have a good credit rating. You can click here to check out some reviews of credit rating services if you’re unsure about your current score, but the general idea is that you need to have a good reputation when it comes to borrowing money if you want to buy a house. This means spending money and taking out loans or subscribing to services such as phone and internet bills. Even if you have the money to buy a product, consider getting it financed so that you can build up your credit score.

Plan ahead, don’t save money

Saving money is perhaps one of the oldest things ingrained into us from a young age. Our parents saved money, their parents saved money, and we’re probably going to teach our children to save money. Don’t misunderstand this point; it’s absolutely important to save money, but what’s even more important is to give that money a purpose. How do you give money a purpose? By planning ahead!

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