If you find yourself getting overwhelmed by the amount of financial advice available online or from well-meaning people in your life, think about the fact that there are really only three things you can do with money. 

Earn It.

You can earn money. We earn money in various ways, such as through our jobs and investments. Earning money is a vital part of a person’s financial life because without having money, there is nothing to plan or optimize with. Increasing your earnings can boost your financial well-being by making it easier to pay for things you need, spend on things you want, or save for the future. 

Spend It.

You can spend money. Often, when we think about spending money, the idea that comes to mind is shopping. But any time that money is used, it is spent. For example, paying your taxes or utility bills is also a form of spending.

To increase your financial well-being, focus on finding ways to align your spending with what you value. By being thoughtful about our spending patterns and learning more about ourselves, we ensure that we spend most of our money on the things we need or that bring us the most joy. You could also evaluate opportunities to lower expenses. Understandably, this is not always possible. If it's impossible to reduce your spending to save more or realign your expenses with your values, focus on earning. 

Save It. 

You can save money. Savings activities are anything that involves putting money away for another time. Of course, you can save by putting money in a savings account, but contributing to your company retirement plan or investing it in the stock market are also forms of saving. While there are several ways that a person can optimize their savings through things like asset choice or market timing, the basic principle of saving stays the same. You are putting away money to be used in the future.

If You Take Nothing Else from This Article, Remember This…

The vast majority of good financial advice is very simple. Simple does not always mean easy, but good money management is not as complex as it seems when flooded with a world of advice. If you find yourself getting overwhelmed and unsure of how to make good financial choices, refocus on the simple, timeless money management habits that work. Work to maximize your earnings. Spend less than you earn. Save for the future.

Yes, there are several other things a person can do to optimize their financial life beyond these simple habits, but if you master these three, you will be well on your way to building a solid financial foundation and can build from there. So, start simply, make progress, and leave the overwhelm behind.