MONEY MATTERS:
HOW TO MANAGE YOUR MONEY
Stop avoiding how to handle your finances, it's time to tackle them head-on. Although money cannot buy you happiness, it can bring a sense of security if you know how to manage it right. When you manage your finances well your life may NOT get easier, Why? Because you're giving more time to focus on important things such as how to spend your money.
Take charge of your finances, no one cares about your financial well-being more than yourself. YOU NEED TO CONTROL YOUR SPENDING HABITS! Having a solid financial plan will help you. Whether you like it or not, money has the power to influence our lives. Let’s dive into how to manage your money!
1. TRACK YOUR SPENDING
Do you track your expenses on a daily basis?
Tracking your spending habits is the most important of all, you need to have an idea how much you can spare in emergency fund and monthly budget to help you keep your expenses below your income. Tracking your spending also helps you to identify and eliminate wasteful financial habits on a daily basis, also it will help you control your finances. So, if you're struggling to track your expenses, read this.
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Reduce your impulsive buying
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Don’t be impulsive in buying things, try to be as thorough as possible when tracking your expenses. We've seen those people that just don't seem to care about their spending. They buy things that are not important and things that they cannot afford just to brag because of what we've seen on social media. Stop fitting into a lifestyle that you can't afford because you will end up under a pile of financial stress.
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If you CAN’T pay for it, YOU can’t afford it!.
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One way to reduce your impulsive buying is “The 72-Hour List”. This 72-Hour is for non-essential purchase only. Before you make that purchase, before you click buy on your add to cart wait for 72 hours to elapse before initially buying it. With that you're putting yourself between desire and action. Consider this as your cooling off period. And if you really want to buy it after 72 hours then that's the time to make a purchase. The “72-Hour List” helps you to track your spending.
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Make a plan for your money
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It's helpful to keep track and categorize your spending, and make a list of all your budget every time you receive your salary and plan out where you want to use your money. Without a proper plan, it is easy to find yourself short on money because it's easy for you to overspend and you're not feeling any guilt for spending your money.
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It's important that you review your finances on a regular basis to be sure you're staying on track. Having disorganized finances leads to financial problems. In order to combat your overspending, take time to make a budget.
2. GET RID OF BAD DEBT
Bad debt is money you borrow at high rates of return to buy things that you need and these things don't produce income, they don't grow in value and don't help you to improve your assets. It is more like liability or not any kind of investment. As much as all hate debt, you must admit that you have one or had it once at a time. Credit cards, personal loans, car loans, etc. are usually the big item in depts. portfolio. And this typically comes at a high interest rate. You have to pay it as quickly as possible so you don't have to accumulate more debt over time.
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So the first thing to get rid of the bad debts is to pay off the highest interest debt such as credit cards. If you're having a hard time paying it off try to maximize the amount of capital you have then start paying your bad debts to highest interest and to lower interest rate.
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In order to set the stage of your success and manage your money, you’ll have to eliminate all your bad debts head-on.
“Don't let bad credit control you”
3. CREATE A BUDGET
Budgeting has been a challenging task. Like many, we struggle in creating our budget. However, there are many budgets out there that we see or heard about that can work for different needs and lifestyles and it’s not that difficult.
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Have you ever heard about 50-30-20? Have you even tried it? NOW is the time! It involves 3 easy steps that will help you prioritize your finances. The 50-30-20 rules depend on your preference, lifestyle and needs. Here’s a formula for you.
50% - on NEEDS
30% - on WANTS
20%- on SAVINGS
Budgeting does not have to be that difficult. Living on a budget is not a bad thing at all. In fact, it can be freeing. You no longer have to worry about whether or not you can afford to reward yourself, because your budget will let you know. Having a plan and sticking to it will allow you to cover all the expenses and at the same time enjoy the things that make you happy.
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4. KNOW WHERE TO PUT YOUR MONEY
It’s important to find a right place and investment where your money can grow passively but still be accessible for you. Separate your emergency fund & investing fund from your normal bank accounts to avoid confusions.
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This time of pandemic you need to be serious about building your wealth. Before you put any of your hard-earned money into investments, it’s important to know the FAQs, Person who could be trusted and knowledgeable to explain about your desired investment and it’s important to have well-defined objectives before digging in.
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Knowing where to put your money is important because it provides security, lessens your financial stress, and freedom.
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Best choice where to secure your money: Open a bank account in AllBank
To know more visit https://www.allbank.ph/
5. INVEST
Investment is an act of allocating your money with the expectation of getting a profit and to allow your wealth to grow but also generate an additional income.
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In times of pandemic we need an investment not only savings. You need to invest wisely to get a good rate of return. Investing is a long-term activity, you need to be committed to it if you really want to see your money grow. Why? You work hard for your money and your money should work hard for you! Savings typically results in you earning and only stagnant.
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If you are not investing you are missing out on a lot of opportunities. One of the best investments of choice is where there is an appreciation value, Like in real estate. Remember if you invest your money today, it will increase in the future and make sure to invest after doing proper research. Lastly, avoid investments that are difficult to understand.
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“When you invest, you are buying a day that you don’t have to work” - Aya Laraya.
Now, ask yourself: ARE YOU SAVING MORE OR SPENDING MORE IN TIME OF PANDEMIC? DID YOUR SPENDING HABIT CHANGE DURING PANDEMIC? WHAT SHOULD I NEED TO DO TO GROW MY MONEY?
Real estate is the best investment right now in this pandemic, even though there’s a pandemic real estate still appreciates its value. The best choice of choosing real estate is here in LESSANDRA.
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Lessandra comes from the most trusted real estate industry, Vista Land. Lessandra offers quality and affordable homes that can be your primarily home or investment. Your property investment grows with us.
To know more about our offering visit https://lessandra.com.ph/project-listings and for your inquiries send us a message on our Facebook official page https://www.facebook.com/LessandraOfficial.
