Navigating the world of personal finance can be overwhelming, even for an adult who has quite a bit of experience in the working world. With some smart planning, a good strategy and understanding of the basics you should be able to develop the money-management skills you need to get your finances under control. Handling money is a lot different when you were twenty and single, and when you’ve suddenly become a mom (because I was given the challenge of responsibility in raising my nephew at an early age). Here are a few things I learned about money that I believe are valuable, as well as some fundamental truths of personal finance that everyone should be aware of.
Saving a portion of your paycheck each month will have a big payoff in the future.
Having your own savings will make you feel more secure, knowing that you have a fund that will tide you over in cases of emergency. Ëver since I was kid, I was always taught by my parents to save portion of everything, however small amount. When I started working, I became more frugal with my spending and opted to save most of my salary (they say ideally, it should be at least 80 percent) for those “rainy days.” If you can’t save that much, at least set aside around twenty percent, and make sure to transfer it into separate bank accounts to prevent yourself from accidentally spending your savings.
It’s perfectly okay to want to nice things so long as you can afford it.
As you move up the corporate ladder, your salary also increases. So there’s nothing wrong if you want to dine out, do a little shopping or reward yourself for a job well done. Ï give in to my indulgences on an as-needed basis. I enjoy a few quality and luxury experiences and items once in a while, but nothing too decadent, too often. When you become a mom, these rewards also change in kind, like get-togethers and trips with the family or a date night with hubby (if you're already married).
Investing early is more advantageous because you have more control over your cash flow.
If you start investing in your twenties, your cash will grow through the power of compounding, and the earlier you start, the more years you’ll have to generate earnings. Make your money work for you as soon as you can and as often as you can because you’ll enjoy the much needed dividend payoffs when you become a mom, when your time is limited and when your appetite for risk is far less.
Find a financial mentor.
Earning your own money is exciting, but it can also be overwhelming. Find someone you can trust—it can be your parent, sibling, or a legitimate financial consultant—who is willing to guide and lead you into making good financial decisions. Make sure it’s someone who can walk the talk. If he’s teaching you a method on investing, make sure he has done the same thing with his money—and has benefitted from it. The right partner can help you make decisions that last a lifetime. For me, it has to be a brand that I can trust with. At Sun Life, they have an array of products and services designed based on your needs. Your dedicated financial experts will take time to understand your financial goals and provide you with professional insights and services that can help create and preserve your wealth today and for the future.
Compare yourself with how others are doing financially to motivate you better.
It’s normal to be envious or a little insecure of friends who can still rely on their parent’s financial support even when they’re already working, but use it as a tool to outperform your peers. By comparing yourself with your friends, you’ll be motivated to work hard, be innovative and to really bring out the best in yourself. Besides, learning to be independent is something you’d want your kids to learn—and you can teach them because you’ve gone through the same thing.
Educate yourself about the market.
It will make a huge difference in your life. You can try watching for bargains and invest in the dividend yielding stocks, and those efforts will be paid off later. Unsure where to start? Read the news and dive into financial books to get the basic tips about being in charge of your money.
Still clueless on where to start?
These books are easy to understand and are filled with practical financial advice.
I wish they taught money in high school by Clarissa Serina-De La Paz and Sharon Que
The book is divided into two parts: the first will teach you about starting your own business, while the second one teaches you ways on how not to be dependent on your paycheck. You will also learn how to invest in stocks or mutual funds and grasp the concept of “paying yourself first” so you experience financial security when you retire.
You get practical money tips for whichever income bracket belong to, plus useful investment advice, everyday budgeting tips, owning property etc.
On My Own Two Feet: A Modern Girl’s Guide to Personal Finance by Manisha Thakor and Sharon Kedar
This quirky no-nonsense financial guide will teach you how to live comfortably without forgetting about investments and savings. It’s something that all girls will be able to relate to—how to avoid credit card debt, create s budget you can live with, and how you don’t need a man to support you.
That's all I can share with you for now folks! Hope you can visit my blog again. Thanks for reading!
Love + Light,