Name: 7 Places Your Money Needs To Go in 2021
Uploaded: 2021-01-23T22:15:06.000Z
Duration: 10 min 6 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

You probably spent a fortune on gifts on new year's eve, especially when it was Christmas

Well, Americans, on average, spend over a thousand dollars on gifts, goodies, and travel.

That might not look like a fortune, but when you look at the other data that says 60 percent

of Americans can't cover unexpected thousand dollar bill, it gets sad because emergencies

happen and they are full of surprises, it might be unexpected doctor visit, your car

breaks down or something else that could prevent you from

There is nothing wrong with buying gifts and having fun, but when our holiday spendings

keep going up year after year while we stop saving and start getting into debt more and

So here in this video, we are going to take a look at where exactly your money should

What steps should you take once you receive that paycheck so that when you are faced with

that unexpected thousand bills again, you don't have to get into debt because you have

been planning your cash flow pretty well!

Allocate your necessities the first thing you should do is to have a

list of your necessities, what are the things you literally can't live without, your house,

Whether you like it not, you have to pay your bills every month.

Otherwise, you will end up in the streets.

A lot of people can't differentiate between their needs and wants.

Your Starbucks coffee might be important, but its definitely not a need but rather a

The reason why this is important is that a lot of people complain that their income is

not enough, that's why they are living paycheck to paycheck.

I am not gonna argue against that, you are probably underpaid, maybe not, but that doesn't

mean you can't manage your cash a bit more effectively, at least.

Especially if you want to get out of this desperate financial position, you definitely

need to be much more responsible with your paycheck.

Denying yourself some of the pleasures might be difficult, but at least you know that you

You don't have to spend every penny in your pocket to make it till the next of the month.

Once you are done with that, you should start building your emergency fund.

A lot of people would say that you should have at least a thousand dollars or maybe

even a few thousand dollars in case if things go south, and they have a point.

Your emergency fund should be your savings fund as well.

Before you throw at me your angry comments, let me explain why.

Once you are done with the first step, you should have a clear idea of how much exactly

Take that amount and multiply it by 6, that's your number, that's how much your emergency

Of course, you cant build that fund in a month or two.

It might take you an entire year to do that, if not longer.

There isn't an exact percentage of your income you should allocate to that because it will

If you are hardly making enough to make till the end of the month, you might consider a

If you are making much more than you possibly need, then you probably should build your

Maybe you should not be having an emergency fund at all because you are hardly making

What's the point of saving money when you barely pay your rent?

In this case, you should forget about this fund and focus on increasing your income first.

It might not be easy, but there are plenty of ways to do that.

When you have multiple accounts to save money, it starts consuming a lot of time, which means

You will do it once, or maybe twice and then you are going to forget about it.

That's why I do my best to simplify everything as much as possible.

And secondly, there is no point in saving a lot of money.

You gotta do something with that money to keep it growing, but let's not get ahead of

But before you build your emergency fund, make sure to pay your debts, especially high-interest

Borrowing money isn't cheap, especially borrowing for short term periods.

I am a big fan of using credit cards to pay the bills, but only if you know that you can

close your balance at the end of the month.

That way, you are not just paying your bills but also building your credit score.

However, if you end up paying interest on your debts, then that's insane.

Imagine working so hard to make a thousand dollars and then spend 20 percent of it to

I have never paid a dime in credit card interest in my entire life, and I would suggest you

But if you already have high-interest debts on your shoulders, before you even save a

dime, make sure to pay them all as soon as you can.

Entertainment Now, let's move to my favorite part, entertainment.

This is the part where you initially plan to spend the least amount of money but end

No matter how disciplined you think you are going to be, most of you won't be able to

spend the entire month without spending on entertainment, it's just part of life.

Hanging out with friends, going to a bar at night or going for a movie with your homies,

Just a little advice, never ever go into debt for entertainment!

Borrowing money to have fun is the dumbest financial decision you will ever make!

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7 Places Your Money Needs To Go in 2021

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