Bid goodbye to 2016 as you reflect what it has taught you for the past 365 days. We’re you able to spend your hard earned cash wisely, or it ended up as ubos-ubos biyaya?
Every New Year, most of us create a list of resolutions we aim to achieve within the year, but all ended doomed, especially the health related ones. However, the money related resolutions seems to be more feasible. This year is the right time to overhaul your financial life and make 2017 the start of your prosperous years.
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If you haven’t made a list yet, we suggest you start by reading our list of personal financial resolutions.
- Save Up, Spend Low
Most people just go on spending their salary and whatever is left becomes their savings. Treat savings as your bill. Make a specific and realistic target of how much should you save until end of 2017. Note the exact details on how you are going to do it. Let’s say your payday is on every 15th and 30th of the month and you plan to keep P500 each salary day.
- 52 weeks/ 2 = 26
- P500 x 26 = P13,000
- By December 2017, you will save P13,000.
However, if you think you can actually save up P1, 000 every salary:
- P1,000 x 26 = P26,000
- By the end of December 2017, you will be able to save P26, 000.
If you prefer the good old alkansya or coin bank, use at least three: 1-peso coin bank, 5 or 10-peso coin bank, and paper bill coin bank. Think will remind you to keep even the change you’ve got in your pockets at the end of the day.
Saving up does not mean setting aside a certain amount of money for future use, it also means that you have to be a wise spender. This does not mean you buy in patingi-tingi. Cheap does not mean saving up and the most expensive do not mean the best value.
- Have an Automated Savings Plan
Ask your bank if you can open an Auto-Savings Plan. This means that you are giving your bank the task of transferring a specific amount of money from your savings account to an automatic savings fund. This is a helpful trick especially if you are lazy to set aside part of your salary or you keep on forgetting to save up because you are an impulsive buyer.
- Pay your Debts
If you have a couple of debts, write them down on the list of the ones with the highest interest rate to the lowest. If you feel like you are going to have a problem meeting the payment scheme diligently, do not hesitate to give your lender a call. Responsible lenders give their borrowers other options of terms or payment especially if you have good records with them. As much as possible, tighten the belt and pay off your debts to be able to save more efficiently.
- Make an Investment
Filipinos are now beginning to realize that saving is not enough if you aim to have a retirement life at ease. We can’t rely on SSS or GSIS alone, make an investment in your own business or in stocks and bonds. However, since investments never go without risks, invest only the amount you can afford to lose.
Either you are investing with your bank’s financial products or you have a broker working for you, take note that you must invest on things you fully understand. Never throw your money blindly just because most people invest in a certain stock. Also, discover the various technique of investing such as the dollar cost averaging.
- Get an Insurance
We usually say that it is better to be safe than sorry. Future is unpredictable, and insurance gives us an assurance that we are protected from a sudden financial crisis. Insurance is an arrangement you can make with an agency that will provide compensation in case of illness, accident or worst death. Though we don’t wish anything negative to happen, we must protect ourselves and our loved ones.
There are various type of insurance. Take time to get acquainted and choose the one you need and can afford.
- Read a Financial Book Guide
Equip yourself with financial literacy to handle your finances well. With these books, you do not only learn how to save, but also how to invest as a beginner. Reading such books by Bo Sanchez will also give you a motivation to handle your money better without the feeling of self-deprivation.
- Get a Personal Finance App
Track your expenses and take a look which ones are your needs and wants. Include even the smallest expense. This will give you an idea of your spending habits and how you have to change. If you are having a hard time tracking every spending use finance apps such as:
- Spending Tracker
- Sell What You Don’t Need
It’s New Year!!! Is there a better day than clean up your closet or even your whole house and see if you can sell the things you don’t use anymore. There are some of us who buy things (especially clothes) but never had a chance to use it. Put them out on a garage sale or post them in online shopping platforms. Their sites are free. Make sure the photos are clear and you have put precise descriptions.
- Know your Benefits at Work
Be aware of what is being deducted from your regular salary. Most regularly employed Filipinos have PhilHealth or any other health insurance, SSS AND PAG-IBIG. Know how you can benefit from these agencies, the services they offer, their coverage and how to avail them.
- Give Back
Yes, we said to save up, but we also suggest that you share your blessings no matter how small it is. A lot of Filipinos still believe that shared blessings grow tenfold. You may give in a charity, your church, a relative you know can use some sincere help or a complete stranger. This may not fill your pockets to the brim, but it will surely give you the sense of satisfaction your money can’t bring in any other way.
If your 2016 resolutions have failed, let 2017 be a better one. There is no way we can exactly predict the future, so while you have some cash to spare now it is best to keep it until the rainy days. It requires discipline and focus, but remember to keep your eyes on the prize.