See whether you are still in a positive situation, meaning your assets are higher than your liabilities (pwede ring equal sila) or you are negative already wherein your liabilities are overwhelming the assets you own. Knowing your Net Worth will make it easier for you to move forward. It acts as a map making your become aware what is the current state of your financial life.
2. Create a Budget
You need to set a spending plan every pay day so you can allot your money smartly. Budgets work as an outline for your money. You record how much money goes in and put an amount for your bills, savings and miscellaneous expenses. This way you are conscious on where your money goes and you can stay in line in making your net worth better. READ: How to Effectively Budget Your Money
3. Track Your Spending
Now this is an added task I know and it could be very daunting to be honest but it will change the way you spend your money. I have mad a post about DIY Spending Tracker Notebook you can read and follow. The idea of tracking your spending is to simply give you more awareness on how your spending habits is.
You Need to be a Smart Shopper
We all enjoyed the movie Confessions of a Shopaholic and I guess its the fact that most of us, single Pinays, relate to the main character. Shopping for new makeup, new clothes and new shoes for example make us happy. But without proper savings you are digging your own financial man hole. In my post 5 Steps to Become a Smart Shopper and Deal with Your Shopaholic Syndrome I gave away the 5 Simple Things that will Make you Become a Smart Shopper. See below:
1. List Down Your Needs, Desires and Financial Urges
Jot down through pen and paper or make an Excel list with the items and the price of each. Having a clear view of what you need and want to buy can further prepare you to the next step.
2. Separate Your Needs and Wants
Decide whether the item on your list is a need or a want. If it is a need then define on the other column the reason why your ought to have it. Why? This will help you to compose your heart and mind in saving for that item. Now for the want try to schedule when you want to buy that item. If its too big then save for it every payday.
Examine your list and create your own financial plan. Prioritize your needs over your wants and if your income does not fit for the date you needed/wanted item then postpone it. Adjust and cut back on your expenses or find another means of income.
4. Research and Ask
Before buying that needed or wanted item you might want to fully research first. Go on forums, ask the people around so you’ll know if its worth it.
If you can’t afford it then try to find alternatives and other solutions available but in the lower bracket.
You Need to Build the Three Envelopes of Your New Life
Now maximize your singleness by building the 3 Funds Of Your Future. These funds will help you from any financial issues and really build a strong foundation of your life.
This is the money set aside to use on situations that calls for emergency. You lost your job, a matter of life and death, an accident or medical emergency on the family and the like. Your emergency fund is your first line of defense in case something goes out of the way. Ensure a good 3-6 months worth of your income as cash cushion. Read the Frequently Asked Questions Here >>>
Financial Goal Fund
This is the money reserved for your financial growth. You save this for your first investment, your first business and/or your debt-management. How much your Financial Goal Fund will depend on your goals too. If you are eying to invest in a mutual fund before 2016 ends then you need to set aside 5,000 initial investment next. Read How You Can Jumpstart Your Financial Find Here >>>
This is money meant for your hobbies, recreation and personal development. Your travel budget, your gym membership, your savings to start a Yoga lesson etc. Fun Funds are generally used to fund something that could add value in your life, something that you’d been setting aside all your life and/or something that might come as out-of-the-blue expenses. Read the Other Applications of Fun Fund Here >>>
You Need to Start Earning More Money
Don’t settle for just one source of income. Try to find out more ways you could start earning extra money. Focus on a skill or talent you have and earn from it. More income means more ways you can save money. Pinays are known to be very madiskarte so for sure you’ll find a way to get started and get some money on your funnel.
You Need to Stop Feeling Sorry You’re Single
Use that emotions you have to better your finances. Its okey to cry for the first few days but realize that there’s you need to start getting yourself together and move on. Let your financial success kill them, right? The best revenge you can do is to show that you are better off without that person. Take advantage of the fact that you are in phase where you have full control of your finances.
I hope the above helped you. I plan to keep this post updated with new financial advice for you. Please use the comment section below to give your inputs and your advice to Single Pinays too.
Which of the financial advice do you love the most?
If you enjoy this post then you might also enjoy