Learning the friendly way

Tap partners with Total Processing to allow Visa debit deposits, improving its customer’s experience

Tap, the dynamic fintech platform can now offer its customers the ability to top up their accounts via Visa card deposit thanks to its new partnership with Total Processing, a leading payments specialist.

This strategic partnership offers Tap customers a new and improved way to effortlessly replenish their accounts, further enhancing the platform's reach, accessibility and convenience.

Renowned for its crypto-inclusive financial solutions, Tap provides a user-friendly platform to allow its customers worldwide to easily manage their crypto and fiat assets. The company is thrilled with its latest collaboration with Total Processing, an award-winning payment processing company that focuses on a customer-centric approach to offer a seamless payment solution.

By integrating Total Processing's innovative payment offering, Tap extends this enhanced service to hundreds of thousands of customers, allowing them to directly fund their Tap accounts using Visa cards. Moreover, Tap continues to provide the flexibility of Mastercard and bank transfer deposit options, serving users in over 40 countries.

The decision to partner with Total Processing aligns with Tap's dedication to delivering a superior user experience. In response to some users experiencing issues with Visa card deposits, the fintech platform has seamlessly transitioned to Total Processing as its new trusted payment processor for frictionless Visa card loading. This move underscores Tap's commitment to delivering high-quality financial services to its valued customer base.

This enhancement is effective immediately and extends across all the 40+ countries where Tap operates. The company remains dedicated to delivering professional and world-class financial solutions, ensuring its users have access to a seamless and efficient experience.

Kriya Patel, CEO of Tap, commented, "Tap is highly committed to providing a best-in-class offering for our customers, and Total Processing delivers the perfect partnership to help achieve this goal. Tap looks forward to working closely with Total Processing to further enhance our customer-focused, innovative payment solutions."    

Alex Leigh, Co-founder of Total Processing, added: "We are excited to join forces with Tap in this strategic partnership, as it aligns perfectly with our commitment to customer-centric payment solutions. This collaboration empowers Tap's users with seamless Visa card deposit options, reinforcing our dedication to a frictionless payment experiences."

-ENDS-

About Tap
Tap is a pioneering force in the convergence of the cryptocurrency economy and traditional financial systems, striving to establish an equitable, accessible, and transparent financial landscape. Since its inception in 2018, Tap has been guided by the bold vision that individuals worldwide should enjoy effortless and secure management of their fiat and cryptocurrency assets. Presently, Tap offers a reliable and user-friendly platform that harmoniously integrates various financial services into a single, convenient hub.

For more information on Tap, visit: www.withtap.com

About Total processing
Founded in 2015, Total Processing is a leading provider of intelligent payment solutions that enable businesses to streamline their payment workflows, reduce costs and boost revenue. The company offers a range of payment processing services, including recurring payments, 198+ alternative payment methods, an agnostic payment gateway, risk prevention tools and in-depth transaction data, all managed within a unified platform.
With a focus on its customers, it provides adaptable solutions and a user-friendly interface to ensure smooth payment processing for its merchants.

For more information on Total Processing, visit: www.totalprocessing.com

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With inflation rates soaring across all corners of the globe, the rising cost of living is taking its toll on everyone involved. Before we dive into how you can stay afloat in these uncertain times, let's first cover the basics.

When inflation occurs, the prices of goods and services go up, which in turn decreases the buying power of consumers. This leads to a decline in economic growth as people now have less spending power and high costs to contend with. 

Everything is more costly than it was a year ago—and even a few months ago. The cost of living has been going up dramatically, with costs for basic expenses like household goods and services on the rise. So, how can you stay ahead of the curve?

Below we cover three important steps to take in order to stay ahead of the rising cost of living. Protect your finances and protect your livelihood with these three top tips:

1. Safeguard your finances from inflation

While saving is vital to anyone's financial health, in periods of increasing inflation it's best to diversify and not keep all your savings in a fiat currency. This is due to fiat currencies depreciating in value during inflation, equating to a reduced amount of money in several weeks or months. 

Instead, try to move some of your savings into vetted investments, this allows you to keep your funds safe and grow their value at the same time. This might also lead to capital appreciation and dividends, should you invest in dollar-based investments. 

Explore alternative options that protect your funds from inflation but also allow them to grow. 

2. Increase your income

For a while now, consumer prices have been increasing steadily. It's unfortunate but it doesn't look like things will be getting any cheaper in the near future. You can't keep waiting and hoping for a better situation - you need to take action. 

The best way to do this is by focusing on ways to increase your income. Here are three options below, however, there are plenty more available online. Consider spending some time exploring this avenue. 

Apply for a promotion

Ask for an increase/promotion: If you're currently earning a salary, it's probably time to talk to your employer about boosting your earnings. Make a thorough account of what you've achieved and why you deserve a raise—and present it to the correct person. Look for resources on how to ask for a raise if you don't feel confident to do so right now. 

Learn a new skill

Add a new skill to your resume: With thousands of free tools online, look for a new skill that both interests you and leverages your current skillset. Learning a new skill is not only great for your mind but can also contribute to that promotion you are after or a high-paying job. Find an in-demand skill and get learning. 

Monetize new skill

Turn your skill into an income: Whether it's your new skill or something you're naturally talented in, consider turning your skills into income-generating products. From creating online classes to consulting to publishing online books, turn your skill/s into money. Again, there are plenty of resources online that can assist you in this endeavor. 

Focus on building wealth through avenues already accessible to you, from asking for a raise to creating an online course, these new avenues of income can help you stay afloat in periods of inflation.

3. Be wise with your money

This goes without saying, but no matter how much money you make, you want to stick to your budget and follow your financial plan. Now isn't the time to be spending lavishly. Also ensure that you have the resources in place to fall back on should you experience any unexpected hard times, like losing a job or emergency. healthcare costs 

A great 3-step plan for preparing for, and then overcoming, inflation is to:

• Create a budget to cover basic expenses and lifestyle expenses, and stick to it.
• Pay off debt. Interest rates are going to increase meaning that you will be paying more for your current loan.
• Keep building your emergency fund. This is the first port of call when starting to save. Aim to have six months of living expenses saved up in an accessible account. 

What is the cost of living index?

A cost-of-living index is a price index that measures the relative cost of living over time or in different regions. The index takes into account changes in prices for goods and services, as well as substitution with other items when prices vary.

As an example from the U.S. according to the Consumer Price Index (CPI), between March 2021 and March 2022, the cost of living index rose by 8.5% (before seasonal adjustment). This is the highest 12-month increase that has been reported since December 1981.

The bottom line on the cost of living

While inflation doesn't need to cause mass hysteria, it is a time to be more consistent and cautious with your money. Be mindful of what you're spending your money on, be aware that loan repayments will increase, and be prepared for increases in everyday goods and services. By following these three steps above (safeguard, increase, and be wise with your money), you should be able to stay ahead of the curve. 

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Did you know that there are 6 unique money personalities, with each one playing a heavy role in your ability to handle and manage money? In this article we’re taking a look at each one, helping you not only identify which category you fall into but also recognize where you can improve your money management practices.

What is a financial personality and how does it affect money management?

A financial personality looks at the big picture of how you handle your money. From how you think about money, the views that guide your actions, and the actions that stem from your beliefs. It's not just about how much money you have; it's also about how effectively you handle the money that comes into your life.

Money management is a learned skill so don't feel disheartened if this doesn't come naturally to you. Sure starting early influences financial habits, but that doesn't mean that these skills can't be learned over time.

These financial personalities are built around a set of traits and characteristics that shape a particular style of money management. They're designed to help us become more aware of our behavior, keep our personalities in check when red flags trigger a knee-jerk reaction and assist us in achieving a healthier financial future.

These personalities coincide with the five main personality traits that are often used when reviewing someone's financial status: conscientiousness,  neuroticism, extraversion, agreeableness, and openness to experience. Used by researchers, these traits help to shape how one might handle money. 

Each top 6 financial personality reflects traits of the following

The six types of financial personality are based on your personal financial habits and include The Saver, The Spender,  The Investor, The Dreamer,  The Optimist, and The Pessimist. Each financial personality speaks volumes about how one views and acts with money.

1. The Saver

If you're a saver, you've already established yourself as someone who is good at saving money. You have a natural ability to save money and concentrate on long-term objectives. You know exactly how much money you want to save each month, and you stick to your plan even when tempted away from it.

You are practical with your savings as a saver. One of the things you might have done is to make direct debits from your bank account to a savings account or wealth management solution.

2. The Spender

Spenders are impulsive and rash. They're not great at handling money, either. They don't save well, invest, or budget. They're more interested in ways to generate income versus growth. You're likely a spender if you struggle with these financial decisions.

Spenders are focused on short-term pleasures and luxury items. They find it difficult to save since they're so concentrated on pleasuring themselves right now.

3. The Investor

You can take advantage of investment opportunities as they arise, even if they appear risky or complex. You keep an eye on the market and stocks to make sure that any investments that aren't performing are removed from your portfolio. They're down for both aggressive or conservative investments.

Investors are enticed by the potential return on investment; they desire high returns without too much risk—so, if they see two alternative investment options with equal potential gains but one with greater risk, they'll pick option B every time.

4. The Dreamer

Dreamers are usually content with what they have and understand how to manifest their desires. The difficult part is not allowing emotions to control spending or budgeting decisions. Instead, dreamers develop a plan and stick to it - no matter the temptation.

If you consider yourself a Dreamer, your financial habits are likely to be the ones that will make you financially successful. Dreamers are usually intuitive and have a clear idea of what will make them happy in relation to their finances. They come up with creative ways to put their plan into action.

5. The Optimist

Optimists are individuals who believe that good things will occur. They tend to have a happy disposition and see the silver lining in every situation. Optimists are more likely to be wealthy financially than other personality types since they save money and make investments, take calculated risks, and generally have a talent for making money.

Surprisingly, optimists tend to have not only better physical health and happiness but also greater financial success! It may sound too good to be true, but there is data to back this claim up. Studies show that optimism and wealth often go hand-in-hand. For example, one study found that people who are optimistic about the future make more money than those with a negative outlook.

6. The Pessimist

The last distinctive financial personality on the list is the pessimists. They are always looking for ways to save money, and they don't just stop at finding opportunities. Financial wellbeing is important and they always anticipate needing to save. If you're a pessimist, then you're probably thinking of ways to cut costs right now. 

Although pessimists might come across as boring, they have great financial stability because they never spend money on unnecessary things and shy away from risks.

Pessimists always think ahead. The Boy Scouts of financial personalities, they're cautious and they plan for the worst-case scenario so that they'll be ready to handle it if it ever happens.

How these financial personalities can help with managing money

Understanding which category (or categories) you fit into will give you a greater understanding of how you might react in a situation demanding your attention. 

With greater self-awareness comes a greater understanding of how one might make decisions pertaining to their finances. If you want to make more informed decisions about your finances, begin by taking the time to learn about your relationship with money.

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Crypto wallets are a critical tool for anyone looking to use, store, and manage crypto assets. Crypto wallets come in various forms, with different features and security options that cater to the needs of different users. Finding the right crypto wallet is essential if you want to get the most out of your cryptocurrency investments. 

No matter what type of crypto wallet you choose, it’s important to do your research before making a decision since each one comes with its own set of advantages and disadvantages. It’s also important that you keep your private keys safe so no one else can access them, this will ensure that only you have control over your funds and crypto assets. 

What is a crypto wallet?

A crypto wallet is a digital wallet that stores manages and facilitates the use of various cryptocurrencies. In order to store and use crypto assets, one needs a digital wallet. Unlike traditional wallets that simply hold your cash or cards, crypto wallets facilitate transactions as well as store your funds. 

Each crypto wallet has a public and private key which are unique alphanumeric codes that grant the user access to the funds. Public keys are wallet addresses to which other users can send you cryptocurrencies, similar to your bank account number, while private keys are akin to a pin number and should not be shared with anyone. 

In essence, crypto wallets act as secure interfaces for users to access, store and transfer funds across different blockchain networks. In essence, it’s like a bank account for digital currencies. 

The different types of crypto wallets

Crypto wallets can be divided into two main categories: hot wallets and cold wallets. 

Internet connectivity is the defining factor between hot wallets and cold wallets. Hot wallets are connected to the internet, making them less secure but much more user-friendly. On the other hand, cold wallets are stored completely offline and do not require any internet connection. This provides a higher level of security, which makes them ideal for individuals who plan on storing their crypto assets long-term. 

Each of these categories can be further broken down into varying wallets. Under the hot wallets umbrella, there are desktop wallets, mobile wallets, and web wallets, while under the cold wallets umbrella, there are hardware and paper wallets. 

Hot wallets

As a hot wallet is easy to set up and constantly connected to the internet they are ideal for users looking to make daily or frequent transactions. Typically with hot wallets, funds are quickly accessible and they tend to be very straightforward to operate. Below we look at the three main types of hot wallets: desktop wallets, mobile wallets, and web wallets. 

Desktop wallet

A desktop wallet is a cryptocurrency storage solution that allows users to store, send, and receive crypto assets from their personal computers with the crypto wallet stored on the device’s hard drive. 

It is generally considered to be a secure way of managing crypto assets as it does not require the user to store their funds on an exchange, instead giving control over the private keys associated with the hot wallet to the user.

The downside however is that it may be vulnerable to computer viruses should someone gain access to your desktop. 

Mobile wallet

Mobile wallets are digital crypto wallets that allow users to manage their cryptocurrencies directly on their mobile devices. These crypto wallets are very convenient and secure compared to carrying large amounts of money around or keeping it in a traditional bank account.

Mobile wallets provide users instant access with more control over their funds and are particularly useful for quick payments that require a scan of a QR code. When downloading this type of hot wallet ensure that you use a link from the website directly to ensure that you are not falling for a fake wallet. This goes for all hot wallets and cold wallets listed here.

Mobile wallets are typically the best crypto wallets for users actively spending their crypto assets.

Web wallet

Web wallets are hosted by third-party services, which act as custodians for users' private keys. Web wallets provide an easy way to manage digital currencies, allowing users to quickly send and receive payments without having to download or install any software. 

Additionally, web wallets offer enhanced security features such as two-factor authentication and multi-signature transactions. With these features in place, web wallets can provide a secure environment for storing cryptocurrencies regardless of the user's level of technical expertise, an added bonus for hot wallets.

Cold wallets

Cold wallets are hack resistant and therefore are considered the best crypto wallets for hodlers. In order to facilitate trades, cold wallets need to connect to the internet in order to trade directly from their cold storage devices.

Hardware wallet

Hardware wallets store private keys on a physical device like a USB drive or an external hard drive. A common example of this is the Ledger Nano X, while secure it retails for roughly $150.

These crypto wallets provide maximum security but require more effort to set up and use compared to other types of crypto wallets. They typically are also more expensive as one needs to buy a physical device. 

Paper wallet

Finally, paper wallets are simply printed copies of public/private key pairs which allow you to securely store funds offline without having any digital device at all. While these are considered to be the best crypto wallets in terms of security, if the paper gets damaged then the funds are lost.

Finding the right crypto wallet for you

In order to find the right crypto wallet you will need to establish what specifically you wish to do with your funds. If you are looking to hold them long-term, cold wallets are by far the more secure solution, however, if you are making payments and using cryptocurrencies in your day-to-day life, a hot wallet or even a mobile wallet might be better suited to your needs. 

Many crypto users utilize a combination of two or three, using the more secure crypto wallet option to hold their funds long-term while also having a portion of funds in a preferred hot wallet allowing them quick and easy access to their funds when they need them. 

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So, you're in your thirties and starting from square one when it comes to your finances. Don't worry, you're not alone, and the good news is that it's never too late to take control and set yourself up for financial success. Congratulations on taking the first step.

In this article, we're going to walk you through a step-by-step guide of practical tips and empower you to make informed decisions as you navigate your financial journey with enthusiasm. It’s not rocket science, we promise. 

Step 1: Assess your current financial situation

Getting a grip on where you currently stand financially is the first step toward building a solid foundation for your wealth. Let's take a closer look at how to assess your situation and define your goals, without breaking a sweat or drowning in crippling anxiety.

Take a close look at your income, expenses, and debts, writing them down or putting them in a spreadsheet. Identify areas where you can make adjustments to free up funds to save money or invest, and then set some clear goals, both short-term and long-term. Want to buy a house in 5 years, or take a trip to visit your friend in Hong Kong? Jot them down, goals are motivating.

Step 2: Build a strong foundation

Armed with a realistic picture of what your finances look like, work your way through the following three steps to start establishing a strong financial foundation. 

• Create a budget and track expenses

The boring news is that establishing a budget is essential to gain control over your finances. No, we're not here to tell you to cut out all the things you enjoy. Creating a budget is about understanding your money flow and finding ways to save without sacrificing your happiness. Learn what your living expenses really are, and how much the interest rates hikes have affected you. It's about taking control of your money, rather than letting your money control you.

If spreadsheets seem daunting, use budgeting tools and apps to simplify the process and stay on top of your spending.

• Work on saving money effectively

No matter how you look at it, saving money is the cornerstone of building wealth. But saving money doesn't have to be a painful experience, it's all about being smart and resourceful.

A good starting point is to set aside a percentage of your income each month for emergencies and future investments. Automate your savings to ensure consistency and consider opening a high-yield savings account to maximize your returns. Look at opportunities available to you to get "free money" (reward points, employer compensations, etc).

A good starting point is to open that savings account and check out our simplified guide on building an emergency fund.

• Manage debt and improve your credit score

Debt can be overwhelming, but we're here to help you tackle it with confidence. Make a list of all your outstanding debts and approach it strategically by prioritizing the high-interest ones. From student loan debt to credit card debt, don't let these weigh you down forever, rather make a plan today that your future self will thank you for.

At the same time, work on improving your credit score by paying bills on time and not opening new credit accounts. Grab the reigns, you’re in control of your financial future.

Step 3: Explore generating additional income

Unsurprisingly, earning more money will equate to more wealth (we told you it’s not rocket science). As all-nighters are replaced with embarrassingly-sensible bedtimes, now is as good a time as any to pick up a small side hustle and generate income. It doesn’t need to earn you millions, the idea is to generate a little bit extra to accelerate your journey toward financial freedom.

• Explore side hustles and part-time opportunities

Who says you can't have fun and make money at the same time? Here are some side hustle ideas and part-time opportunities that might align with your interests. It’s time to turn your passions into profit and allow a new income stream to make your savings account a little plumper.

• Leverage your skills and talents for freelance work

You've got unique talents, and it's time to put them to work. Platforms like Upwork and Fiverr are great ways to gain exposure and find work that allows you to tap into your skills and find freelance opportunities that not only bring in more money but also allow you to showcase your awesomeness. Embrace entrepreneurship and transform your skills into a profitable venture.

• Invest in personal growth for career advancement

Investing in yourself is one of the best investments you can make. Invest in your personal and professional development to boost your earning potential and open doors to exciting career advancements. 

Acquire new skills, pursue certifications, or enroll in relevant courses. Continuous learning not only amplifies your marketability but also positions you for better career prospects and greater earning power. It's time to level up.

Step 4: Investing for the future

Don’t be overwhelmed by the word “invest”. Let’s go through this together, one small step at a time. Consider this the start of your golden investment era. 

• Understand the basics of investing

Investing doesn't have to be complicated jargon that leaves you breaking out in a sweat. Start small and familiarize yourself with the basics of investing. Learn about stocks, bonds, mutual funds, and real estate, and educate yourself on the concept of risk and reward. If in doubt, contact a financial adviser to get you started.

• Identify suitable investment options for beginners

You don't need to be a Wall Street expert to start investing, or need to know what real estate investment trusts are for that matter (yet). Consider beginner-friendly investment options that are easy to understand and offer steady growth, like low-cost index funds or exchange-traded funds (ETFs).

A word from the wise: stay away from get-rich-quick schemes and get started investing in assets aligned with your risk tolerance and long-term goals. Get ready to dip your toes into the investment pool.

• Diversification and risk management strategies

To minimize risk, spread your investments across different asset classes. Diversification is like having a cool umbrella that shields your portfolio from those crazy market storms. Don't forget to give your investments some love and attention from time to time. Review your strategy, do a little rebalancing dance if needed, and stay in the know about economic trends that could sway your investments.

Step 5: Overcome financial challenges

Don’t get caught off guard, navigate financial hurdles and stretch your money like a pro while still staying motivated on your wealth-building journey. Yes, it’s possible. 

• Dealing with limited funds and unexpected expenses

Starting from scratch often means facing financial limitations. And we get it, life happens, and unexpected expenses can throw us off track. But fear not! The key step in learning how to stretch your money and navigate financial hurdles with confidence is to build an emergency fund to soften the blow when hard times hit.

The unfortunate truth is that you’re also going to have to learn how to prioritize needs over wants to make the most of your resources.

• Set realistic expectations and stay motivated

Building wealth takes time and patience. Be sure to set realistic goals and celebrate the small victories along the way. Stay motivated by envisioning the life you want to lead and remind yourself of the long-term benefits of your small efforts today. 

• Seek professional advice and support

Hey, we're here to guide you, but we're not financial advisors. That's why it's essential to seek professional advice when needed. A qualified financial advisor can provide you with personalized advice and help you navigate complex financial decisions, offer investment strategies tailored to your goals, and ensure you're on the right track.

Step 6: Long-term wealth building

Rome wasn't built in a day, and neither will your financial wealth. 

• Set long-term financial goals

Picture your dream life and let's make it a reality. Define your long-term financial goals, like buying a house, planning for a comfortable retirement, or starting a business, and break them down into achievable milestones. Then develop a roadmap to reach them. As you hit the milestones and manage the ebb and flow of life, be sure to regularly review and adjust your goals along the way.

• Retirement planning and saving strategies

Retirement might seem far away, but it's never too early to start preparing for it. Take advantage of compound interest and explore strategies for retirement savings that make sense for your current situation, like a retirement account or participating in employer-sponsored retirement plans (particularly ones that offer tax relief).

Be sure to maximize contributions to these accounts whenever possible and look into tax-efficient investment funds. Let's ensure your golden years are as golden as can be.

• Reviewing and adjusting your financial plan periodically

Flexibility is key to your financial journey. Regularly review your budget, investment account, and progress as you move confidently toward your goals. Make necessary adjustments to your investment strategy to stay on track and seize new opportunities that align with your evolving financial situation. Life changes, and so should your financial plan. Keep it adaptable and exciting.

Final thought

Starting from €0 in your thirties may seem challenging, but with the right mindset, knowledge, and practical steps, you can embark on a fulfilling financial journey. By budgeting effectively, saving diligently, generating additional income, investing wisely, and overcoming obstacles, you can build a solid foundation for long-term wealth and financial security. 

While it's no walk in the park, it’s not rocket science. Empower yourself with the tools and resources available, and remember that every step you take today brings you closer to a brighter financial future and fuller savings account.

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While everyone's wants and needs might be different, there is always a clear line in the sand between the two. When getting to grips with one's personal finance, distinguishing the key differences between the two becomes important.

Needs encompass basic needs like food while wants lean more toward things one desires, like luxury goods. Being able to distinguish between the two, and acting on this, is imperative to one's healthy financial standing. 

In this article, we take a look at these two categories and assist you in differentiating between the two.  

What falls under NEEDS?

The need category looks at living expenses that one needs to stay healthy in their day-to-day living. These include everything from rent to the utility bill, medication and healthcare needs as well as food, commuting, and any work-related expenses. 

These are the basics required by one in order to function, and these should make up the bulk of your expenses. These expenses are also used to determine the amount you'll need when establishing your emergency fund. It is generally accepted that emergency funds should cover six months living expenses.

What falls under WANTS?

‍The wants category is likened to goods we could live without but choose to buy. These are not required for day-to-day living, however, when funds allow they can provide a more enjoyable quality of life. These include vacations, buying a house or car, entertainment, memberships, streaming accounts, etc. 

How to determine needs from wants

While some needs will be glaringly obvious, it's often the case that some wants sneak into the needs category. Here are three simple tools to help you distinguish between the two. 

Form vs function

If in doubt, consider how a product or service will be used. Clothing for instance: if the clothing will be worn to work it falls into the need category, however, if it's a clothing item centered around going out or recreation use, this will fall into the want category. 

‍Embrace brand variety

Needs and wants will differ from person to person, so it's best to have a solid grounding on what falls into needs and wants specifically for you. For instance, if you were looking to upgrade your smartphone, someone working in the tech or digital marketing space might be required to have a certain product, while in other cases getting the latest and greatest will fall into the want category. In this case, it might be best to explore other devices that have a lower total value.

Should you split expenses?

Grocery shops will more often than not fall into the need category, as feeding yourself is essential to survival. However, if the grocery shop consists of wine, chocolate, and other treats, this will fall into the wants category. 

While we don't expect you to scour through each grocery bill, be mindful of what you're spending your money on and try to balance shops between the two. For instance, if you splurge on a grocery shop one week with wants but register it in the needs category, consider adding the next week's grocery bill to the wants category. 

Is saving a want or a need?

Saving for long-term financial objectives like settling debt, retirement plans, and emergency situations might be tough for someone who makes less money. Because these costs are not immediate, they are not always recognized as a necessity.

However, settling debt can be a necessity to ease the financial strain. Furthermore, an emergency may strike at any moment, and during that time, an emergency fund will save one from falling into further (if not crippling) debt. As a result, it's vital to understand that even if your earnings are low, saving is beneficial in the long run, therefore, savings fall into the need category. 

How to navigate spending between wants and needs

Here are two easy steps to help you navigate your spending habits:

Create a budget

Establish a realistic budget and decipher how much you can spend on wants, needs, and savings. By creating a framework you can stick to, you can easily avoid any financial problems and still enjoy a good quality of life. 

A common ratio used in the budgeting world is the 50:30:20 method. Use 50% of your income on needs (rent, food, bills), 30% on wants, and put the remaining 20% straight into your savings.

Be realistic about your wants

If you're looking to save more money or are working on building your emergency fund, consider adjusting your spending on wants. Being more strict with what you can and cannot buy or lowering your standards somewhat can assist you in saving money and rather allocating the funds to a retirement fund for example. Other ways to reduce spending habits are to get a roommate or use public transport. 

In conclusion

Spending intelligently is without a doubt one of the most important ways to make your money go further. The principles, on the other hand, are focused on saving more, spending moderately on necessities, and sparingly on wants. Paying more attention to desires might lead to issues and limit financial development.

Consider carefully what your needs and wants are and then gradually attempt to lower your standard of living. By focusing on your essential needs without disregarding the importance of saving, you'll be on the fast track to financial ease in no time.

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