Spending money is easy. It is fulfilling if the money is spend in areas that can yield more money. Due to the scarcity of it, we need to make better decision on how to spend it. There are productive way to use your money.
The following are five ways you can use your money
Invest Your Money: Buy Stocks
Buying share is one of the best investments to build your wealth. Buying share makes you one of the owners of the company. Any rise in the price of the share, earns you some returns in form of divided. Though they may be riskier than other investments, they give the best return on investment.
When you buy stock, you own a tiny slice of that company and will benefit from any rise in its share price as well as any dividends it pays out. Stocks are generally seen as riskier than bonds, but stocks can also vary widely in risk from one corporation to another.
Use Money to pay Off your debts
Previously I wrote an article on about the importance of paying the debts. debts can be a hinderance to debts may seem like a accumulating wealth. it is then important to clear your debts first every time you have money. it may not be easy, but can be done.
Use Money to Buy Experience not Things
Research shows that people tend to get more happiness out of buying experiences rather than material things. Once you experience something you get self-connection. The experience contributes better to your life story since they are difficult to compare. You might think that the problem with spending on experiences is that they are over in an afternoon, whereas a shiny new pair of shoes can last you years. However, when researchers from the University of Texas instructed people to spend a number of dollars a week either on experiences or on material goods, the first group felt happier afterwards. The reason is that the shoes remain the same (apart from becoming less shiny), so we stop noticing them, but experiences bring more variety. They also bring us extra pleasure in a form of anticipation long before they actually take place. Psychologists from Cornell University found that people didn’t get joy from the anticipation of material purchases in the same way they did from experiences. And of course, a day out leaves you with happy memories too.
Spend Money on Others
Dunn a US psychologist in her research found that, those people who spend on others are happier than those who spend on themselves. Her students thought spending on themselves brought more joy. she tried it out for real on the streets of Vancouver, stopping passers-by and giving them an envelope containing $20 in cash, those who were instructed to spend it on someone else or give it to charity felt happier at the end of the day than the people who told to buy gifts for themselves. She also discovered that individual who spend the highest proportion of their income on others are happier than those who spend all on themselves.
Use Money to Treat yourself
When people are feeling miserable, they are more likely to buy themselves a gift. In a study conducted in a US shopping mall, researchers found that people often spend money strategically to improve their mood.
They know what they’re doing. Small treats won’t make a difference in the long-term, but can cheer you up temporarily. Lots of small treats will make you happier (and cost less) than one big one. We get used to the things we have all the time, but when they’re a treat, they tend to bring more happiness.