Money Matters

Money Matters

 

Are you in a financial dire? Relying on credit cards to pay off monthly dues or creditors to tide you over? No savings year after year? I'm no financial guru or Suzy Orman, but here are some things that I have learned from working and living abroad:

1. Make a list of your expenses. Break it down until you see your daily expenses and keep track of everything. Remember every cent counts. Use MS Excel or free money manager apps from IOS or Android. 
2. Evaluate your expenses. Usually there would be sore areas that needs improvement. Eating out a lot? Make it once or twice a week instead. Do your grocery, cook over the weekends to bring lunch and snacks to the office. Yes, those trips to the convenience stores piles up the amount.
   
3. Stick to a budget, give yourself only an allowance. When I worked in Singapore, I only had SGD 10 in my wallet, plus some snacks in my bag. This allows me to eat breakfast and lunch. We cook at night to save money.
   Unnecessary shopping? Sale? Itching to get the latest games, gadgets, fashion? Most of the time you don't need it. To be well dressed, you only need a few new pieces put well together. When I need clothes, I buy it after Christmas so that I can get them on discount.
   One tip that works for me, I look at something and I keep coming back for it. If at the end of a few months, I still would like to get it, then I do. However, usually I just forget it a few months down the line.
4. A little goes a long way. Examine your monthly net income and stick to a monthly budget. You can start saving 10% then 15% then 20% then so on. Whether its Php 1,000 or SGD 300 of monthly savings X 12 months = Php 12,000 or SGD 3,600 compared to Zero savings. Then you can reward yourself up to 20% of the amount for the hard work.
5. Open a separate savings account with passbook and no ATM or Debit Card. One account for your wages, and one savings account. Make it hard for yourself to withdraw money. Return the ATM to your bank or leave it at home. Watch your savings grow from a passbook or online facility.
6.  Eliminate debt, cut your credit card. Seems like owning a credit card has now become a trend. Usually you will see these marketers in malls, telling you "all you need is an ID". Never fall for it, they get a commission when a person signs up. People fall into debt whey they use credit card irresponsibly, with the mindset "I'm itching to get this item, I don't have cash now, but I can easily swipe my credit card to buy this item."   Do you know that at the month end, you will need to pay your credit card bill in FULL AMOUNT? Paying the minimum amount stated will surely compound interest rates for the next month and so on. That's where you get in debt, which affects your credit rating. Thus, this has a domino effect for bigger things like loans- car or housing. When you swipe your credit card, make sure that you have cash to pay the bills at month's end. Responsible & wise people do that, earn points, gain and maintain good credit standing. 
7. Augment your income. In spite of all the budget cuts mentioned above, you still find yourself short or wanting to save more, here are some ways to increase your income: Find a hobby- cooking, baking, teaching, dancing, sports, making accessories, arts, designing, selling, fixing, etc?  Work on your craft during your spare time and sell them to your colleagues, clients, neighbors, family and relatives. Many entrepreneurs started this way, and discovered their passion. When it became bigger than their jobs, then they pursued it full-time. Chef Heny Sison started her career as a banker, and started baking on weekends. She sold her goods to her clients, until she noticed that she was making more money with baking. Thus she left the banking industry to pursue baking full-time. Now, she is an entrepreneur and in-demand chef with a culinary school of her own. Her wedding cakes must be ordered a year in advance.