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Affiliate Paycheck

Spend Vs. Save Vs. Invest

What to Do When You Receive Your First Affiliate Paycheck

Congratulations, all of your hard work has paid off, and you are the proud owner of your first check form the affiliate marketing campaign that you ran this month. 

We are proud of your success and wish you good luck with your future affiliate marketing campaigns. But what can you do with the money that you have earned this month?

Here is the age-old question of whether to spend, invest, or save the money that you have earned through your best affiliate marketing course at Wealthy Affiliates?

Let us break down the answer to this question here so that you can decide for yourself, the best course of action.

Understand the Importance of Cash:

Let’s suppose you have made a successful investment of a hundred thousand dollars, and if you need ten thousand dollars today and that money is not available, you are broke. That is the importance of cold hard cash. 

Always remember that any saving, investment, or spending should not be allowed to deprive you of cold and straightforward savings that are still available for you to use. You can get into an emergency, or you can need to use the money.

In any of those instances, cold cash is the key to a future and success. Avoid spending money in a way that you are left with an empty pocket. Even if you are converting your savings into the investment of some kind, only do that after having a proper emergency fund and after paying off your debts. 

Savings that Can Be Instantly Liquidated!

The best way to invest while still having complete access to your money is by investing in ways that allow you to liquidate your money instantly. There are many ways to achieve that goal but here are a few ways to make sure you have complete access to your own money 

Checking Accounts:

Checking accounts are a great way to save your money in a place where it will be easy to liquidate. That is also the most commonly used method of retaining the savings a person has made. You can also have a savings account that will allow you to save money in a savings account. 

Unites States Treasury Bills:

The United States treasury bills are a popular way to save money \safely. You will find there is a small percentage that you earn when you sell them back. But that is a consistent and reliable way to make a small profit on the money you have invested. 

Money Market Accounts:

Money market accounts are the best safe ways to earn money through your savings. A money market account will make you profit in a reasonable and sustained manner, and you can pull out your money anytime you like.

There are various pros and cons of using a money market account, but these are perfect if you have some extra money. You can put that money into these accounts, and you will gain a regular profit on your savings every month. 

Why do we invest in money?

These were the practical and straightforward ways to save the money that you are making. But now we will come to the actual money investment schemes that you may need. We invest money so that we will gain a considerable amount of revenue every month and can keep up with the rising inflation. 

Always remember that investing money is like any other trick, the more you do it, the better you will become at it. So always try and invest small amounts in various ventures from an early age. If you are earning in college, then try and spend small amounts of your savings and so on. That way, you will learn the direction of the market from the early days. 

How can I invest Wisely?

A good investment has a safety margin and will not put you into bankruptcy. Here are a few simple ways to invest effectively:

Invest Extra Money:

Do not invest your college loan money in any scheme. If you want to pay back your college tuition early through investment, then save the money and spend your extra income, when it doubles, put into your college loan savings. 

Next time, you will have a more significant chunk to spare in terms of savings, so on and so forth. That is an effective way to invest your money and make sure that you are also covered.

Investment is not Saving:

A real investment is not something you can cash on a rainy day. Investments have their cycle of giving out a profit, and that will not always match your immediate financial needs. Avoid investing your saving or investing as a way to save, Only invest the money that you are not liable for to make sure that you are investing responsibly

Stock Markets are Bad, Period!

There is no such thing as making big money on the stock market. The stock market loses half of its value every year; that is the truth! So invest in good projects and angel investment opportunities but always make a point to stay away from the stock market. 

Insurance:

Focus on investing in health insurance, paying down your debt, and buy a house on mortgage. All of these are better ways to invest your money than trying to double or triple your savings. Anyone who is trying to tell you that you can save with the investment overnight is lying. 

Learn to do your research and make up your mind. Unless you genuinely trust your financial adviser, try to avoid investing large sums based on their advice. And always make sure that you are not spending your future or your savings into any scheme.

The truth is that the small amount you save every month can do wonders if you use it properly. And that is the most straightforward truth that many individuals need to understand.