Spending gives us the instant gratification that so many of us crave. While spending isn’t innately bad, convincing ourselves that our “wants” are actually investments can be harmful. The internet has made everything so much more accessible, including investing, so why do we prefer to spend instead of invest?
In this blog post, we’ll share three tips for women to make better financial decisions, but first, let’s talk about how social media is making you spend more money and why it’s important to invest instead.
Social media has made it so much easier for us to spend money. With targeted ads, influencers promoting various brands, and in-app stores, it’s no surprise that people are spending more money than ever just by scrolling online.
Not to mention the constant highlight reel of friends and acquaintances taking trips and buying exotic foods and clothes. It’s completely normal to want to have exciting photos and videos to share as well.
Social media apps were designed to get people to take action, and currently, that action is to pull out your purse.
Investing is essential to build wealth and secure your financial future. While it sounds challenging, investing is just spending money on things that will bring you more money in the future.
You might have substantial savings right now, but simply saving money won’t be enough. Due to inflation, the value of money decreases over time, so the money saved today won’t be sufficient to sustain you in twenty to thirty years. However, investing some of your income can increase your savings and accumulate a larger fortune over time.
So, how can you make better financial decisions and avoid overspending? The following are the top three tips for managing your finances.
Having clear financial goals will help you to make better decisions. Do you want to own your own home? Do you want to retire early? Are you planning on traveling? Think about where you see yourself in the next few years and work toward that goal.
Investing in yourself is another important aspect of financial success. You can invest in yourself by taking online courses, working out, or learning a new skill. You are, and will always be, your greatest investment. By improving yourself, you become more marketable in whichever field you choose to pursue.
As your income increases, it’s so easy to fall into the trap of spending more money. While you should definitely enjoy the fruits of your labor, be sure to avoid overspending. By creating a budget and sticking to it, you can set financial limits and make better choices.
The difference between spending and saving is an important concept that every woman needs to understand to manage her money better. While social pressure can make overspending easy, you can make better financial decisions by remaining focused.