How do you budget your bimonthly income, your weekly allowance or your retirement pension? And with the means to have a decent life despite the incessant increase of the basic commodities’ prices and your occasional wants; are you able to save and to spend accordingly?
Last December 29th, 2012, the Colayco Foundation, together with Pag-Ibig Fund conducted a free webinar to help every Juan across the globe save by spending wisely no matter how small or big your income is.
Let me share with you some pointers I learned through this meaningful webinar:
- When does borrowing become bad debt? When you obtain money for no purpose, for a “want,” to pay off a debt and donating or helping others.
- Savings is your first source of capital for generation. What you put aside now reflects the kind of future you’ll have when you retire.
- Identify optional expenditures that may prevent you to have more savings. To do this, list all your monthly expenses. Eliminate or reduce these to increase your savings the next month.
- Obtaining a loan is not bad. It is an obligation. It should not be an option to pay off your regular expenses.
- When does borrowing become good debt? When it is used for housing, car, business, education, emergency. You borrow to grow and when you have an active income to pay off for your obligation.
- The right savings equation is deducting a portion for your savings once money comes in. Whatever is left, use it for your expenses. Not the other way around.
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Have you been practicing any of the pointers mentioned above? To learn more on how to manage your finances, click here.
Cheers to a better tomorrow to all of us!
Photo Source from here
Thank you for sharing dear x
ReplyDeleteI learn something from this article, Thank you for sharing, Farida:)
ReplyDeleteDefinitely- borrowing to fulfill a 'want' is the beginning of downhill
ReplyDeleteGreat advice! My hubby is the money manager in our family and he has a good head on his shoulders, especially when it comes to savings and paying bills etc...
ReplyDeleteHappy New year!!!
Mostly, but that last one is the hardest hehehe. It's is usually the other way around when the expenses threaten to outvalue the income.
ReplyDeleteI have Mr Colayco's books and they are very helpful!Thanks so much for sharing tips
ReplyDeleteI truly believe in the value of saving no matter how big or small your income is
ReplyDeleteThank for the tips Farida. I'll need to practice # 6. :)
ReplyDeleteThank you for sharing these tips. It really helps to always deduct the savings right away before even dividing what's left for expenses. It gives you a more accurate picture of how much you really should be living on. :)
ReplyDeleteThank you for the wise advice, Farida. No matter how much a person earns, if he can't save, then there would still be a problem!
ReplyDeleteMy husband is also very good at this... saving! And he has taught my son about this, too!
ReplyDeleteThese are very helpful pointers. Very timely nga because I just finished our general budget for this year. I am hoping to have more savings and cashflow more than ever. Sana effective yung strategy ko.
ReplyDeleteGreat post Farida. I still have a lot to learn when it comes to the management of our finances. I'll keep you pointers in mind.
ReplyDeleteWow.. thanks for sharing this Farida.
ReplyDeleteLive in Italy / Europe now days as an ordinary people we couldn't practicing above list.No matter how small or big your financial. The problem is we are working here for paying high taxes instead of savingfor our own. Italy has the highest taxes in this planet.
our saving goes to the government ;(
awful unfortunately ;(
wishing you a beautiful week darl
We're not good but my mom has enforced a rule, forced savings first, then you budget what's left, instead of the usual formula na money earned - spend money = savings, money earned - savings = money to spend.
ReplyDeleteNice sound advice.
ReplyDeleteI didn't there is such a phrase as a good debt. I am not one to like borrowing money, same goes with lending. There is just a tension that this brings to relationship, especially when they're not paying.
ReplyDeletei have been listing my expenses for almost a year now, with my saving as expenses na rin kasi automatic siya. hahaha. but it is worth it naman pag nakita ko yung amount after sometime.
ReplyDeleteLearn a lot about saving when Pesos and sense conducted a seminar last year and they showed a glimpse of some opportunities that people can engage with.
ReplyDeleteGood pieces of advice! #6 is something I'm still trying to master. LOL
ReplyDeleteVery timely tips. We all need to manage our finances wisely. Thanks!
ReplyDeleteGreat advice.
ReplyDeletethese are nice tips, i really do save a lot for the future
ReplyDeleteThanks for sharing this one. I really need to earn extra income nowadays. Some are really helpful.
ReplyDeleteI want to make #6 my goal.
ReplyDeleteGuess what, recently I realized that obtaining long-term loan from PAG-IBIG is not good. The loan's interest will be x3 of the principal amount if paid according to the loan period. And that excludes the penalty for late payment.
These tips are of great help. My husband and I are talking about our SSS loan, pwede na kasi ulit kami magloan but I told him wala pa paggagamitan. Until two nights ago when I open to him the idea of having a sari sari store in front of our house. One option is to have a loan or kuha from our savings and kita from our online shop. Hopefully it will push through kasi added income din naman un.
ReplyDeleteMommy Maye
www.momaye.com
Thanks for sharing this, I hope this will help me manage my finances.. I admit I sucks when it comes to managing my finances..
ReplyDeleteThis is a very nice post! very informative and could provide great tips for those who want to improve on their financial standing.
ReplyDeleteThese are really good financial advice. I do follow some of the above. I know I do have to be more prudent to be able to build a still comfortable/decent future when I get older. :)
ReplyDeleteThis is something I was very confident with, I thought I know how to save until now. Recent events pushed me to my limits and it's yet to unfold if Id be able to save given the current circumstances :( Btw, goodluck on your spend/savings!!
ReplyDeleteI still have a hard time doing number 6. I always believe in living below my means.
ReplyDeletei like point #6... reversing the budgeting... set aside for the savings first before the expenses... :-)
ReplyDeleteand i agree with Kat, live below your means
Well we really need to do something about with our budget and spending habits. It's not bad to spend but in a proper and wise spending will do.
ReplyDelete