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what is one way to live comfortable?
what should i do to live comfortable, should I invest my money?, how should I manage my money.
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11 answers
Updated
Sai’s Answer
Living comfortably can vary from person to person, as it depends on individual preferences, values, and circumstances. However, here's some tip i use for financial stability:
1. Live below your means:
- avoid unnecessary debt and live below your means
- prioritize needs over wants
- as your salary increase, keep your spending the same to increase savings
2. Budget:
- pay yourself first: meaning contribute to your savings account the same way you would pay bills at the start of the month
- categorize and track your spending over a long period of time to collect data over time
3. Emergency Fund:
- having an emergency fund of 3-6 months allows me the freedom and peace of mind regardless of "how the market is doing"
Financial stability contributes to my sense of security, enabling me to meet my basic needs, plan for the future, and enjoy life without constant financial stress.
Last suggestion is a book: The Millionaire Next Door: The Surprising Secrets of America's Wealthy
1. Live below your means:
- avoid unnecessary debt and live below your means
- prioritize needs over wants
- as your salary increase, keep your spending the same to increase savings
2. Budget:
- pay yourself first: meaning contribute to your savings account the same way you would pay bills at the start of the month
- categorize and track your spending over a long period of time to collect data over time
3. Emergency Fund:
- having an emergency fund of 3-6 months allows me the freedom and peace of mind regardless of "how the market is doing"
Financial stability contributes to my sense of security, enabling me to meet my basic needs, plan for the future, and enjoy life without constant financial stress.
Last suggestion is a book: The Millionaire Next Door: The Surprising Secrets of America's Wealthy
Updated
Brian’s Answer
Hello Bryson,
Mighty oaks from little acorns grow.
Save what you can, as early as you can, for your retirement years; however, remember that it is still important to live each day to the fullest. Don't overspend, live slightly below your means, and do not be envious of others and what they have.
B.
Mighty oaks from little acorns grow.
Save what you can, as early as you can, for your retirement years; however, remember that it is still important to live each day to the fullest. Don't overspend, live slightly below your means, and do not be envious of others and what they have.
B.
Updated
Fred’s Answer
"Comfortable" is really relative. But general advice is:
Start saving for retirement as soon as you can, and as much as you can. Try VERY hard to save at LEAST enough to maximize any corporate match your employer may offer.
There is good debt and bad debt. Buying property is GENERALLY considered a good debt, as interest is low and property usually appreciates. Credit card debit is BAD debt, as it is super high interest, and usually we are not buying things we need. There is debate about school/college debt and if a college degree is still worth it. In part, it depends on what field you are going into.
Having a budget is a smart idea. Sticking to that budget is even smarter (and harder).
If you can invest, generally the smart thing to do is buy into a mutual fund. Do not try and pick individual stocks - that is EXTREMLY hard and risky. Investing in a mutual fund is low cost, less risky, and pretty safe over the long term - like 20 years. You will see some short term ups and downs, but don't panic and sell as soon as the market drops a bit...
Now, I am not a financial advisor. Do not take what I say as the absolute truth. Do your own research, decide what risk level you are comfortable with, and make your own decisions. Or, contact a financial advisor and get professional advice tailored to your specific situation.
Start saving for retirement as soon as you can, and as much as you can. Try VERY hard to save at LEAST enough to maximize any corporate match your employer may offer.
There is good debt and bad debt. Buying property is GENERALLY considered a good debt, as interest is low and property usually appreciates. Credit card debit is BAD debt, as it is super high interest, and usually we are not buying things we need. There is debate about school/college debt and if a college degree is still worth it. In part, it depends on what field you are going into.
Having a budget is a smart idea. Sticking to that budget is even smarter (and harder).
If you can invest, generally the smart thing to do is buy into a mutual fund. Do not try and pick individual stocks - that is EXTREMLY hard and risky. Investing in a mutual fund is low cost, less risky, and pretty safe over the long term - like 20 years. You will see some short term ups and downs, but don't panic and sell as soon as the market drops a bit...
Now, I am not a financial advisor. Do not take what I say as the absolute truth. Do your own research, decide what risk level you are comfortable with, and make your own decisions. Or, contact a financial advisor and get professional advice tailored to your specific situation.
Updated
Donnie’s Answer
Hello Bryson,
The best suggestion I can provide here is to prioritize where you spend your money. For example, if your goal is to have a home, a car, and a social life; you will need to spend towards those things with a defined budget. Really spending time understanding where you are spending your money will help to define what those priorities are for you. Once you begin to look at your money as a tool versus a need or want, you will start to implement choices that help you reach those goals that you have for your life. I would highly suggest investing in to your own savings and into additional plans (i.e. stocks, bonds, etc.) that will provide returns on your investments at a later date. Let your money make money for you. Hope this helps!
The best suggestion I can provide here is to prioritize where you spend your money. For example, if your goal is to have a home, a car, and a social life; you will need to spend towards those things with a defined budget. Really spending time understanding where you are spending your money will help to define what those priorities are for you. Once you begin to look at your money as a tool versus a need or want, you will start to implement choices that help you reach those goals that you have for your life. I would highly suggest investing in to your own savings and into additional plans (i.e. stocks, bonds, etc.) that will provide returns on your investments at a later date. Let your money make money for you. Hope this helps!
Updated
Tony’s Answer
I would suggest investing, I would start at a young age as your interest will compound overtime.
Updated
ash’s Answer
Bryson,
Indeed, your question is quite comprehensive, encompassing a range of factors. These include 1) Your spending habits, 2) Your needs, 3) Potential life changes in future years, and 4) Overall economic conditions.
However, the general advice is, yes, you should definitely consider investing your money. The specifics of how and where to invest hinge on your comfort with risk and your financial growth goals.
Here are some starting points to set you on the right path: 1) Try to save money - aim for about 33% of your income if feasible. 2) Acquire some basic financial knowledge - understand what the stock market is, what a mortgage entails, what bonds are, and so on. 3) Depending on your age and investment timeline, there are several investment options to explore.
Remember, money plays a crucial role in ensuring a comfortable life. I hope this guidance proves helpful to you. Keep going, Bryson! You're on the right track.
Indeed, your question is quite comprehensive, encompassing a range of factors. These include 1) Your spending habits, 2) Your needs, 3) Potential life changes in future years, and 4) Overall economic conditions.
However, the general advice is, yes, you should definitely consider investing your money. The specifics of how and where to invest hinge on your comfort with risk and your financial growth goals.
Here are some starting points to set you on the right path: 1) Try to save money - aim for about 33% of your income if feasible. 2) Acquire some basic financial knowledge - understand what the stock market is, what a mortgage entails, what bonds are, and so on. 3) Depending on your age and investment timeline, there are several investment options to explore.
Remember, money plays a crucial role in ensuring a comfortable life. I hope this guidance proves helpful to you. Keep going, Bryson! You're on the right track.
Updated
JOSEPH’s Answer
Great question. Wanting to live comfortably relies on prioritizing how you spend your money. Try to ensure that you have around 5 -10% of your take home pay into a 401K or savings for your future. Your monthly expenses try to limit to 75% if your pay, leaving you around 15% or so to enjoy the moment.
Updated
Austin’s Answer
While the topic at hand may not have a one-size-fits-all answer, remember that everyone's comfort level varies in all aspects of life, including finances. But don't worry, we can simplify this complex topic into manageable steps to help you gain confidence in your financial journey.
Let's begin with the basics: start a savings account. Consider this your first true "investment" and a solid foundation for your financial journey.
Next, you might be wondering where and how to invest your money. There are numerous investment advisors who can guide you. A good starting point would be your primary bank. Just ask if they have someone who can discuss investments with you.
With these initial steps, you'll begin to grasp the fundamentals of sound investment practices. And as time progresses, you'll develop a deeper understanding of what works best for your financial situation. Remember, this is your journey, and you're on the right path. Keep going, and you'll become more comfortable with your finances.
Let's begin with the basics: start a savings account. Consider this your first true "investment" and a solid foundation for your financial journey.
Next, you might be wondering where and how to invest your money. There are numerous investment advisors who can guide you. A good starting point would be your primary bank. Just ask if they have someone who can discuss investments with you.
With these initial steps, you'll begin to grasp the fundamentals of sound investment practices. And as time progresses, you'll develop a deeper understanding of what works best for your financial situation. Remember, this is your journey, and you're on the right path. Keep going, and you'll become more comfortable with your finances.
Updated
Marcus’s Answer
I would say invest your money in a reliable account and or put away money in your savings account. Only spend money on the thing s you need such as food, shelter, and your bills. It's ok to spend on some wants but just be smart about it.
Updated
Kim’s Answer
Bryson,
Fred, Sai, and Brian pretty much covered it. distinguishing between wants and needs is essential. You "need" dependable transportation. You "want" a flashy sportscar.
Setting up an Emergency Fund is essential. Borrowing from yourself,, (and paying it back!) is better than paying interest to someone else.
Taking all "free" money is essential. Let's say your employer will match your savings contributions up to 5%, but you choose to save only 3%. You just walked away from a free 2% of your salary.
Tracking expenses is essential. I started doing this when I had to quit working, prior to getting approved for disability. It's a real eye-opener.
"keeping up with the joneses" is a bad practice. You don't need to compete with your neighbors or friends. Do your own thing. If they have lunch delivered every day by Uber Eats, it's okay to pack a lunch from home. Really. Maybe go out on Fridays.
Don't be so austere with your money that you are not enjoying life. Live a little. But, plan for it. Plan for a vacation. Plan for a concert or two.
And plan for emergencies! There are very few "unexpected" expenses. Cars break down. People get sick. That should be "expected."
Don't hesitate to shop second-hand stores, esp. when first starting out.
Get some insurance. If you have a family that depends on your income, get life insurance. Also get Disability Insurance. it's not promoted as much as life insurance, but, it is probably more important. When I got in a bad car wreck that put me out of work for 8 weeks, it paid me a percentage of my salary. It is sometimes offered through your employer. Get both the short term and long term. It's probably not necessary to get specific insurances like "cancer insurance." Have decent health insurance (get the best plan you can afford) and car insurance. If you rent, get renters insurance. If you own a home, get homeowners insurance. BUT, understand there are deductibles, co-pays, and even non-covered expenses. Plan accordingly!
Lifestyle creep: As our salaries increase, so do our standards of living. Be cautious of this. When you get a raise, remind yourself that "yesterday" you were living just fine without that money. Increase your savings. Sure, it's okay to keep out 10-15% of the increase to maybe plan for a vacation or something, but save most of it!
I don't know the current apps for money management. I do just fine with old-fashioned spreadsheets! All my bills on one, and other expenses on the other. I put all my purchases on a credit card that pays 2% cash back (more free money!) BUT, I pay this card off monthly. Not an easy feat to accomplish when young, but, if you have the self-discipline, and adequate cashflow, it's worth a try.
Feel free to come back with more questions! Best of luck to you!
Kim
Fred, Sai, and Brian pretty much covered it. distinguishing between wants and needs is essential. You "need" dependable transportation. You "want" a flashy sportscar.
Setting up an Emergency Fund is essential. Borrowing from yourself,, (and paying it back!) is better than paying interest to someone else.
Taking all "free" money is essential. Let's say your employer will match your savings contributions up to 5%, but you choose to save only 3%. You just walked away from a free 2% of your salary.
Tracking expenses is essential. I started doing this when I had to quit working, prior to getting approved for disability. It's a real eye-opener.
"keeping up with the joneses" is a bad practice. You don't need to compete with your neighbors or friends. Do your own thing. If they have lunch delivered every day by Uber Eats, it's okay to pack a lunch from home. Really. Maybe go out on Fridays.
Don't be so austere with your money that you are not enjoying life. Live a little. But, plan for it. Plan for a vacation. Plan for a concert or two.
And plan for emergencies! There are very few "unexpected" expenses. Cars break down. People get sick. That should be "expected."
Don't hesitate to shop second-hand stores, esp. when first starting out.
Get some insurance. If you have a family that depends on your income, get life insurance. Also get Disability Insurance. it's not promoted as much as life insurance, but, it is probably more important. When I got in a bad car wreck that put me out of work for 8 weeks, it paid me a percentage of my salary. It is sometimes offered through your employer. Get both the short term and long term. It's probably not necessary to get specific insurances like "cancer insurance." Have decent health insurance (get the best plan you can afford) and car insurance. If you rent, get renters insurance. If you own a home, get homeowners insurance. BUT, understand there are deductibles, co-pays, and even non-covered expenses. Plan accordingly!
Lifestyle creep: As our salaries increase, so do our standards of living. Be cautious of this. When you get a raise, remind yourself that "yesterday" you were living just fine without that money. Increase your savings. Sure, it's okay to keep out 10-15% of the increase to maybe plan for a vacation or something, but save most of it!
I don't know the current apps for money management. I do just fine with old-fashioned spreadsheets! All my bills on one, and other expenses on the other. I put all my purchases on a credit card that pays 2% cash back (more free money!) BUT, I pay this card off monthly. Not an easy feat to accomplish when young, but, if you have the self-discipline, and adequate cashflow, it's worth a try.
Feel free to come back with more questions! Best of luck to you!
Kim
Updated
Aisha’s Answer
Hello Bryson,
Never stop learning. Every moment you dedicate to expanding your knowledge can transform your life. You are shaped by what you know. The more you learn, the more control you have over your life.
Take care of your body. It's the most amazing tool you'll ever have. It's involved in every step you take and every move you make. Feed it well, keep it active, and let it rest. Spend as much time as you can with the people you love. We humans are emotional beings. Our family and close friends form the heart of our emotional support system. The more you nurture these relationships, the more support you'll receive in return.
Get involved in something you believe in. It could be anything. Some people are active in their local community, some find solace in their faith, some join clubs that support causes they're passionate about, and others find fulfillment in their careers. In each case, they're engaging in something they deeply believe in, which brings joy and purpose to their lives.
Be the best at what you do. If you're going to do something, do it right. Be outstanding in your work and your hobbies. Build a reputation for yourself, a reputation for consistent excellence.
Live within your means. Lead a comfortable life, not a wasteful one. Don't spend to impress others. Don't fool yourself into thinking that wealth is measured in material possessions. Manage your money wisely so you're in control, not your money. Always live well within your means.
Be self-reliant. The greatest gift is freedom, and the greatest freedom is self-reliance.
Create a comfortable, loving home. Home is where the heart is. Your home should be a place of comfort and love, a place that brings the whole family together. Honesty leads to peace of mind, and peace of mind is priceless.
Respect everyone, regardless of their age or status. There are no boundaries or classes that separate those who deserve respect. Treat everyone with the same respect you would give to your grandfather and the same patience you would show to your baby brother.
Embrace variety. Try new things. Seek as many new life experiences as possible and share them with the people you love. Your life's story is a series of experiences. The more experiences you have, the more interesting your story becomes.
Take responsibility for your actions. Either you take ownership of your actions, or they will end up owning you.
Always exceed expectations. Some people make promises they can barely keep. They promise the moon and deliver the ordinary. If you want to enhance your personal value, do the opposite. Under-promise and over-deliver. It will appear to others as if you're always going above and beyond.
Listen more than you speak. The more you listen and the less you talk, the more you will learn and the less you will overlook.
Focus on mastering a few things. Think of it like Karate: A black belt seems much more impressive than a brown belt. But a brown belt doesn't seem much more impressive than a red belt to most people. Remember, society admires experts. Hard work is important, but not if it's spread thin. Focus on a few things and master them.
Never stop learning. Every moment you dedicate to expanding your knowledge can transform your life. You are shaped by what you know. The more you learn, the more control you have over your life.
Take care of your body. It's the most amazing tool you'll ever have. It's involved in every step you take and every move you make. Feed it well, keep it active, and let it rest. Spend as much time as you can with the people you love. We humans are emotional beings. Our family and close friends form the heart of our emotional support system. The more you nurture these relationships, the more support you'll receive in return.
Get involved in something you believe in. It could be anything. Some people are active in their local community, some find solace in their faith, some join clubs that support causes they're passionate about, and others find fulfillment in their careers. In each case, they're engaging in something they deeply believe in, which brings joy and purpose to their lives.
Be the best at what you do. If you're going to do something, do it right. Be outstanding in your work and your hobbies. Build a reputation for yourself, a reputation for consistent excellence.
Live within your means. Lead a comfortable life, not a wasteful one. Don't spend to impress others. Don't fool yourself into thinking that wealth is measured in material possessions. Manage your money wisely so you're in control, not your money. Always live well within your means.
Be self-reliant. The greatest gift is freedom, and the greatest freedom is self-reliance.
Create a comfortable, loving home. Home is where the heart is. Your home should be a place of comfort and love, a place that brings the whole family together. Honesty leads to peace of mind, and peace of mind is priceless.
Respect everyone, regardless of their age or status. There are no boundaries or classes that separate those who deserve respect. Treat everyone with the same respect you would give to your grandfather and the same patience you would show to your baby brother.
Embrace variety. Try new things. Seek as many new life experiences as possible and share them with the people you love. Your life's story is a series of experiences. The more experiences you have, the more interesting your story becomes.
Take responsibility for your actions. Either you take ownership of your actions, or they will end up owning you.
Always exceed expectations. Some people make promises they can barely keep. They promise the moon and deliver the ordinary. If you want to enhance your personal value, do the opposite. Under-promise and over-deliver. It will appear to others as if you're always going above and beyond.
Listen more than you speak. The more you listen and the less you talk, the more you will learn and the less you will overlook.
Focus on mastering a few things. Think of it like Karate: A black belt seems much more impressive than a brown belt. But a brown belt doesn't seem much more impressive than a red belt to most people. Remember, society admires experts. Hard work is important, but not if it's spread thin. Focus on a few things and master them.