We need money to be able to
buy our essentials and to sustain our needs. However, with all that we see and
hear about money, the truth of the matter is, only a few people have truly
mastered how to handle money properly. Money isn’t bad. What is wrong is the
greediness of people and their love for money. It is when we allow money to
control our lives that makes it bad. Money should enrich our lives instead of
controlling us.
I don’t mean to become a ray
of sunshine here. I'm no financial expert either. I just want to share what I had learned about keeping my finances in the hope that it might work for you too. But people, in general, must learn more about money management.
About having too little or too much. About how to spend and save wisely as well
as know when to invest. About the satisfaction it brings and the hassle it can
cause if you don’t manage it well.
Contrary to what we have
been made to believe, mastering money doesn’t need any financial related degree
or expert investment strategies. It only takes both short term and long-term
planning, being consistent on the plan, also entails lots of discipline and
having the right attitude.
Here, I am sharing some personal finance tips to get you started:
1. USE CASH WISELY
Back when I was a teenager, I was given a supplementary card of my mom’s credit card. When you’re at that age, swiping cards seemed so cool! So out of my immaturity, I would use my credit card each time I’d dine in restaurants and cafes with friends and when I’d go shopping. Until such time when I’ve maximized my card’s credit limit. Can you imagine how my mom got the shock of her life after she has learned what I had done? The lesson here is it’s still best to use cash instead of a credit or debit card so you can monitor well your outgoing expenses. You have to use your money wisely. Cliche as it may sound, but it's true, it's important to distinguish your needs versus your wants. The thing is, if you can't live without it, it is a necessity. But if it's one of those things you've been jonesing for, it's best to forget it.
2. SAVE SMALL WEEKLY SAVINGS
This isn’t really easy especially
if you’re doing it the first time. If you’re not sure where to begin, follow
this simple formula: Salary-Savings=Expenses. Or make it 60-20-20 because you
might feel that you’re going to be short each time you receive your salary. Try
to save a small amount of money on a weekly basis. For example, each week try to save P125. It
may be a small amount but at least you will be having P500 savings per month!
It isn’t bad to start with. Once you’ll get used to saving weekly, you can try
to save bigger money.
