Planning your finances for this year or for the next couple of years? I’m glad you’re now starting to do things differently! Planning your finances is the starting point to be financially secure later on. You have to manage your money well if you want to live free from debt and other financial baggage. Your finances need to be organized. No one would do it for but yourself.
Keep track of your finances
One of the ways that have been effective with me is keeping track of my own finances. You can apply this to yourself as well. When keeping track of your finances, use a journal. Some people prefer to jot them down while some use digital notebooks already. You can do either or both. As long as you keep a record of what’s happening with your money, you are doing good. The importance of keeping track of your money is that you will know where your money is going. You don’t have to allocate time to wonder where it is. You can just go to your journal.
Of course, you also have to be consistent when writing your journal. You must have that momentum every time you write down what’s happening with your money. Keeping track is a waste if you don’t do it regularly.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Formulate your goals
Many people are getting lost in the middle of their budget management. Why? Because they don’t have the motivation to manage their finances well. They go with the flow and let the rest of their money take them where it can take them, which is not a good habit. If you are looking for motivation to stick to your financial plans, start formulating your goals now. These goals will help you keep going. Planning to retire young? Include that on your list of goals! Planning to buy a house after a couple of years? No problem, include it in your goals. Want to buy your own car? That’s great! Make it your motivation. Your goals will serve as your inspiration. Believe me, having goals will help you become financially secure in the future.
Income -savings = expenses
I’ve been using this formula since I started savings and investing. Yes, some people say your bills should come first but at some point, your expenses are the reasons why you still don’t have savings today. Why not do it the other way around? Instead of prioritizing your expenses, prioritize your savings. Use this formula when planning your finances: income – savings = expenses. This will save you a lot of money and stress. This formula saved me from living paycheck to paycheck. Plus, it’s a relief that you have savings to withdraw whenever you need money. Remember one thing—you are not just working to live. You are working and making money for your financial freedom later on.
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