Hard-earned money should not disappear in just a blink of an eye! You must learn to manage it wisely.
Why is it so tempting to spend your money? Is it because of peer pressure? Can it be because they have new gadgets, clothes, bags, shoes- you name it?! It’s because you compare yourself with what they have, well, that’s one of the reasons why you want to spend your cash. Because there’s a need to belong, compete or outshine them all!
But that’s not at all right, you know. You have to think about your future while enjoying the present. But how do you do that? Well, here are some tips that will be beneficial for you so that you will learn to manage your money much, much better and become more financially-literate.
Save a little money every week.
Even if it’s just a cent, it doesn’t matter just as long as you discipline yourself to save every week. Forget about it in such a way that you don’t try to get the money you have saved. Just let it stay in your piggy bank until it grows.
Plan your savings.
Promise you won’t touch your savings, alright? Then while you let it stay where it is, plan what you’re going to do with your money. You may prepare different envelopes and distribute your cash for bills, groceries, transportation, emergency, and don’t forget to have an envelope for your leisure! That’s important. Your life can be filled with stress and you have to unwind once in a while. But make sure you have enough savings for that before using your money. Then don’t spend it all. Save some for your next leisure schedule.
The emergency envelope is pretty important too. Emergency situations can be stressful so it’s really convenient that you save some of your money with it in mind.
It’s better if you deposit the money in the bank Do it every time your piggy bank is already filled with your cash.
Let money come in, not come out.
As much as possible, make ways to make money come into your life than go out of it! It’s easier said than done, but it can be done! Just focus on your dream of having a better future. Spend for what you need and not always for what you just want. There’s a big difference between your needs and your wants. So it’s much better if you will easily learn to discipline yourself to prioritize what’s important and what’s merely acting to spend on a whim.
Create income streams.
You’re so blessed that you’re in this Digital Age where you can easily learn things in just one click. You can upgrade yourself easily by registering to online courses to obtain new skills. You may attend free seminars or workshops to be more qualified to jobs that will provide you with a better income. This way, you won’t just rely on your salary.
You may also plan a garage sale to sell the things you no longer need, as long as they’re still in good quality.
You may be young now but of course you will grow old one day soon. And what’s in store for you when you’ve already reached your senior years? You have to prepare for that. And one of the best ways to do it is to invest in stocks, mutual funds, real estate, or business. When you save money, make sure that you have included savings for investment. That will ensure a happy life for you when you have reached retirement age.
And when you invest, say, in stocks, you’re helping companies hire more people. That means more employed people! You’re helping companies grow big which also means economic development of your country.
Don’t you know that you can help others while helping yourself become financially free? You can be a virtual farmer while at the same time saving the livelihood of real farmers. In the Philippines, FarmOn.ph will give you the chance to help farmers while crowdfunding projects that will benefit them. When they earn, you earn too as a virtual farmer.
And as you aim to have a healthy lifestyle, you may buy fruits and vegetable through Session Groceries while at the same time helping farmers sell their crops. Isn’t that great?!
Avoid loans and credit cards.
As much as possible, buy products using one-time payment or cash. It will lessen your anxiety if you don’t have lots of loans to think about. So the trick is, save first then buy what you need to buy, in cash.
As you save money, don’t be too harsh on yourself. Enjoy your life but in moderation. This means eating more plant-based foods than meat which is more expensive, taking advantage of seat sales for your travels, or buying not-too-expensive-yet-in-good-quality clothes, bags, and shoes.
It’s okay to treat yourself once in a while. Remember, you’re your greatest investment. You’re the major beneficiary once you’ve learned how to manage your money wisely.