The New Year promises a fresh start for everyone. That is why a lot of Filipinos during this time formulate resolutions to help them establish goals, make some changes, and improve their lives.
The biggest challenge comes the month after, when old habits try to find its way back. Aside from having resolutions, they need to have enough willpower so they can stick to their game plan. The same principle applies in handling money.
In 2015, we want our followers to be smart in handling their money – on their way to financial freedom. If saving money is one of your resolutions, make sure you master these things first in order for you to do it successfully.
1. Set your financial goals
Knowing your destination is very important in every journey. Your first task is to determine what you want to achieve this year. How much do you need?
Do you want to go on your dream vacation? How about to have enough down payment for your dream house or car?
Having a clear purpose on WHY you are saving will help you stick with it the next time you are tempted to quit.
2. Make a budget
If your financial goal is the destination, a budget is your map to get there. That is why making a budget is very important in every successful saving – it will tell you where your money will go.
The 10-20-70 principle will help you manage the money that is coming in (salary, commissions, gifts, and bonuses) to where it is supposed to go.
Ideally only 70% of your income should go to expenses like electric and water bills. 10% can go to your emergency fund or your tithe. The 20% should go to your savings and investments.
3. Make your money grow – Invest!
If you follow the principle stated above, sooner or later you will have enough savings. But like what we always teach everyone, do not stop there. Learn how to make your money grow through investing.
Take the time to study each investment available to you like stocks, mutual funds, and insurance to help you determine which one best fits your needs and purpose.
If not now, when?
Time is the most important factor when it comes to investing. Come to think of it, time is the only non renewable asset you have. Take advantage of the time you have now because the sooner you start, the more time your money will grow.
2015 promises a bright future for the Philippines, are you going to be part of it?