Dear Debby,

How would you handle finance?

Sincerely, Robin D. Bank

 

Dear Robin D. Bank,

     Judging by your name, it sounds like you have recently acquired a decent sum of money.  Congratulations and great job on taking the first step in good financial planning: asking for help.

     I am known to be very frugal and will not spend money on anything unless I have at least 5 good reasons for it. I think that for some people this is a good idea. Before buying anything ask yourself questions like, “Do I need this?”, “Can I buy a cheaper brand with the same quality?” “How long will this last me?” “Will this improve my quality of life?” and the classic, “Why am I buying this?” Retail therapy, or buying things to make you feel better, is often ineffective and not the best way to spend money.

     But what are some good ways to spend money? One of the things I have learned in my life is that any money invested into your wellbeing is worth it. For example, healthy food, exercise equipment, or maybe even a self-help book. (Those can surprisingly be very helpful especially when it comes to mental health.) Another good thing to spend money would be on things that will help earn you money, for example, if you are a freelance photographer, buying photography equipment is a reasonable thing to purchase. 

     However, I will not spend this whole post telling you what you should and should not spend your money on.  In the end, it is up to you. Let’s talk about finance.

     I have recently learned that the banks in different countries are different and have different services so I will try to keep this as universal as possible.  Interest is a good thing unless it is on a loan, in which case pay that loan back as fast as possible.  Don’t spend more money than you have. This one sounds very hard, especially when it comes to post-secondary education. My best advice there is do the very best you can because it is insanely hard to pay for post-secondary.  

    Another great way to save money is to cook at home. Getting groceries and cooking is cheaper than eating food from a restaurant. For some good tips on eating healthy, check out another response I wrote a while back. (https://rebelfederation.com/dear-debby-1/ )

      Finally, and probably most importantly, don’t be afraid to ask for help. Money and finance are very complicated and even the experts don’t always get it right. 

     I will leave you with a very famous proverb: Don’t put all your eggs in one basket.

Cheers,

Debby