I'm just a local business and finance nerd looking to help people get educated about small business, marketing, and personal finance! I write about anything and everything that I can tie into those themes. I'm also Central Florida's only Kilted Realtor, so I write about Real Estate too! Check out my About Me page to see the origins of Cash Flow Celt.
Conquering Your Financial Empire
In my last post I talked about how to construct a budget. While that is by far the most effective way to get your finances in check, the second most effective tool is actually being able to curb your spending. Our budget should consist of things we need and hopefully your income can cover those expenses. If you can’t cover your essentials then it’s time to increase your education, get a side hustle, or consider your priorities on wants vs needs.
If all of your necessities are covered, then you start looking at your wants. We all work hard for our money and deserve to spend it on things that make us happy as well as things that we need to survive. As we all know though, what starts as a splurge can often time end in a gross overestimation of what’s in the bank. For that reason, I wanted to give my readers a little help to make it easier to stop spending so much.
I’m currently faced with a comfortable problem – I’ve got too much cash on me right now. A terrible problem to have, I know. However, I’m trying to decide where I will put it. May, historically, for the stock market has been a time when people sell out of their positions. That means prices are going to be depressed which could provide an excellent opportunity to value buy some great market winners. Without this cash on hand, you can’t take advantage of abnormal dips in the market, which means you’re leaving cash on the table.
I could also move money into Peer to Peer Lending. This was the route I thought I would take; however, after Lending Club meltdown, I’m a little weary of putting my money into that right now. I could also use Prosper, but I honestly think I will just hold off for a bit and make sure the industry is still safe. Some forthcoming government regulations could curb the large returns and I don’t want to get caught putting money into a non-profitable venture.
Ultimately, I have choice. That’s why you need to stop spending on the frivolous. You’re locking yourself into a certain lifestyle by not controlling your spending. By accruing this money, I am reducing my lifestyle risk, because I can invest some serious capital into money making ventures rather than being forced to live paycheck to paycheck.
Readers, what things do you do to stop spending on unnecessary things? Do you agree that having money more equates to more freedom? Be sure to discuss in the comments below! And don’t forget to like and share on Facebook. Show your friends you’re on your way to conquering your financial empire!
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