Spending Literacy

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 29^th, 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:

1. 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.
2. 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.
3. 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.
4. Obtaining a loan is not bad. It is an obligation. It should not be an option to pay off your regular expenses.
5. 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.
6. 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.  

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