POWER MONEY TIPS #1 Save when you’re still young It’s often easier said than done, but without any doubt, the time is the most vital part in saving. In your case, you have most of it. More time, more savings and the combination of the two – multiplying savings. The younger you are, the longer time you have to maximize the growth of your financial portfolio. #2 Stay at home Our nerves are pulling us to live by ourselves, away from our parents. Living independently is amazing but if we struggle financially, it’s better to stay at home, especially if travelling back and forth to your workplace is still tolerable. Consider factors such as rent, utility bills, home supplies, never-ending laundry, food you have to prepare for yourself, and everything else that will cost you so much money compared to when you’re living in your own house. #3 Adjust your lifestyle If you practice the frugal lifestyle and find the fun out of it, it will be easier for you to adjust your lifestyle to what you are supposed to behave. To make it even more possible for you, be with people who you think can help you. Surround yourself with people who you think can influence you and your future plans. #4 Spend within your means It does not make sense to spend more than what you earn. However, many 20-something yuppies do this – buying clothes, eating out a lot, spending a lot for themselves, living from payday-to-payday. It’s never a good thing for your financial life and behavior. Regardless if you own millions or few money, this is a golden rule to financial stability. #5 Budget your money (50-30-20) To be able to spend less, you should learn to make a proper budget for a certain time period. Be resourceful; you can download apps that synchronize your financial plans from mobile to PC to email. Financial experts suggest on following the 50-30-20 plan on budgeting. This means that 50% of your income should go to necessities like rent, utility bills and other needs; 30% should go to the income you could spend while 20% should go directly to your savings. #6 Save before you spend To make it easier for you to actually save, once you get your paycheck, keep the 20% or any amount that you want to save for that month and then spend the rest. By doing so, you will have a sure saving and will give you more allowance to spend the money you have on hand. There are banks that offer easier saving schemes wherein you can set a certain amount to be automatically debited from your payroll account on a regular basis (once or twice a month). #7 Open a Savings Account It’s much easier to apply for a savings account compared to other bank products, and the great thing about it is that it won’t cost you anything but more. The interest is not big though but it pays to put your money in it especially when you only do deposits. #8 Invest It’s not hard and expensive to invest in stocks and mutual funds; in fact, there are a few brokerage companies in the Philippines that offer affordable ways for you to save long-term even with a small starting investment. It is oftentimes a matter of balancing risk and protection, but the key is to research first and compare the market before making any decisions. Do not forget to consult your broker and make sure to get the best investment scheme most suitable for you. #9 Get insured The best thing about your age is that you can pay for as low as PHP500 every month to get a life insurance. The younger you are, the cheaper you will pay. Why? Because you will have more years to pay for it unlike the older folks. #10 Maximize technology Filipinos nowadays are very tech-savvy. That’s another advantage of 20-somethings or the Generation Y, as the society calls it. Most of us grew up in the boom and evolution of the Internet and the computing technology. Make use of this opportunity to manage your finances. Consider using digital financial tools like tracking your budget with apps, viewing your e-stateme
Posted on: Thu, 18 Dec 2014 14:20:32 +0000
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