PERSONAL FINANCE Spending

Do This, Not That When It Comes to Your Finances

August 24, 2016
SavingsPinay remains as a personal finance blog of a common Pinay. With that being said I have shared to you with all honest my confessions as a personal finance blogger. I am not perfect when it comes to handling my finances. And just like you I am struggling to get my finances in order before 2016 ends. But I never lose hope. I hustle a lot this past weeks because my goal is to finish this year strong. I’ve learned some valuable lessons that I’d like to share to you. I call this the Do This, Not That When It Comes to Your Finances list. I hope you’ll enjoy. 



Do This: Find a “raket” you can do on your spare time.

Not That: Be contented in your current job salary

“Raket” (Filipino term) or side hustle is just a must nowadays. You can never rely with your current salary anymore specially if you are supporting a family of your own. The best way to find out extra means of income is looking around you. Assess what you know or what you have that you can sell to people. Its either you sell your skill like becoming an event emcee, freelance writer, tutor, virtual assistant etc. Or you sell products through building an online shops, doing a garage sale or joining bazaar etc. Your side hustle can be out of what you are passionate about. People who love photography soon become wedding photographers as additional means. I for example love makeup and has been an event hair and makeup artist for a while now.  READ: The Secret Behind Creating Multiple Source of Income.

The key is to get to know what you do that sells. 

Do This: Save a portion of your income automatically

Not That: Put savings at the least of you priority

Not everyone understands the importance of savings. It takes a lot of financial discipline to know the beauty of the golden rule Income – Savings = Expenses. I am guilty beyond reasonable doubt of overspending and not giving much emphasis on my savings. I learned my lesson the hard way. Now that I’m 22 saving money is just the way to go and what ultimately helped me is to do it automatically. How to do this? First enroll to online banking. A lot of my colleagues don’t do this and I am honestly surprised. Online banking gives you so much more convenience and access than regular banking. What I personally do is open another savings account aside from my payroll and I automatically transfer funds online. This is such an effective approach. READ: Frequently Asked Questions About Saving Money

The key is to pay yourself first no matter what.

Do This: Invest your money

Not That: Live in a one-day millionaire attitude

Now I do believe that our finances is very personal. We don’t even like to talk how much we make, right? Its not something we can answer right away when asked. But its important to remind ourselves that without proper use our finances can suffer. If you have extra money why not save it for investment. Imagine how much money you waste with your vices, specialty cafes and impulsive shopping. If you gather those you already have enough to invest in a mutual fund or beginner’s stock market. Replace your bad habit of splurging like there’s no tomorrow with investing wisely. Learn how to invest for first-timers and not just normal investment. You need to have goals, patience and readiness with the risks that comes along with it. READ: Intro to Investing | An Almost Complete Guide

The key is to remember what you do today will greatly affect your future.

Do This: Spend less than you make

Not That: Be in debt

I know spending less than you make sounds too good to be true. Its hard to live below your means specially if you let your emotions and cravings come in. But instead of letting yourself be in much financial debt (and literally digging your own grave) try to be consistent in using a budget. A written budget will work best to know exactly where your money goes. This will also prevent you to accumulate any additional debt. Every time your pay check comes use the 50-20-30 Rule of Budgeting. Accumulate 50% of your budget on the essentials like bills, food, transportation etc. The 20% must be reserved on your financial goals like savings, investments and debt management. The 30% on the other hand can be spent on your lifestyle fund like budget for recreation, miscellaneous needs like toiletries, personal supplies, etc. READ: Best Money Moves for Pinays

The key is to learn how to live frugally so you may live abundantly too. 

Do This: Fund your retirement 

Not That: Wait for you to age before starting a retirement fund

Now is the exact time to begin investing for your retirement. You need an ample time to make your money grow through compound interest. Make sure that you have secured active contributions on your government-issued policies including SSS, GSIS, PhilHealth, PAG-Ibig, etc. Open a separate investment vehicle as your retirement account. Mine has been my FAMI-SALEF investment all the way. If you may, try to accomplish a life plan today. You can read my blog post: Is St. Peter Life Plan an Investment for more understanding. I know it sounds morbid but if you look in the bigger picture its better to be prepared for you and your future family financially. If you want to enjoy your retirement years fully then you need to better mind your retirement fund. READ: Things That I Learned Since My First Investment

The key is to prioritize paying yourself first before anything else. 

Do This: Invest in yourself

Not That: Forget yourself in the quest to financial freedom

I believe its equally important to remind ourselves that we are our greatest investment. It is important to make yourself more valuable by learning a new skill, mastering your talent and investing on what makes you truly happy. Stop sabotaging yourself and try to enjoy life as it is. I have made a complete post about this recently for reference. READ: 7 Ways You Can Invest in Yourself

The key is to  enjoy the the process. Get rich slowly but surely.

Final Thoughts

If you read my story you know that my interest in personal finance grew just last 2014. Before that I was living in a complete financial sin, wasting every bit of my money on non sense stuff. I keep on buying things to impress the people around me I don’t even like. The birth of SavingsPinay was the start of my life turning around. I learned to do this and not that when it comes to my finances.

Taking control of your finances may seem like a wrong process and a daunting task. But I assure you that having a clear mindset when it comes to your money will bring you sanity. Change one habit at a time and say yes to financial freedom. Keep going and make today count. 

Are you ready to start your journey to financial freedom?
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Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph